Weather Derivatives as A Risk Management Tool for Beverages Manufacturers and Breweries in The UK

The weather has an enormous impact on the cash flow of a company. Weather risk has serious implications for a plethora of industries ranging from energy producers, agro industries, beverages producers to ski resorts and golf courses. According to US Department of Commerce, $1 trillion of their econo...

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Main Author: Ray, Chiranjib
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2005
Subjects:
Online Access:https://eprints.nottingham.ac.uk/20010/
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author Ray, Chiranjib
author_facet Ray, Chiranjib
author_sort Ray, Chiranjib
building Nottingham Research Data Repository
collection Online Access
description The weather has an enormous impact on the cash flow of a company. Weather risk has serious implications for a plethora of industries ranging from energy producers, agro industries, beverages producers to ski resorts and golf courses. According to US Department of Commerce, $1 trillion of their economy is sensitive to weather. An estimated 70 per cent of all businesses are affected by weather that extends across geographic and market borders. A literature review revealed that the end-users of weather derivatives are mostly energy and utilities companies. Not much has been written about the use of weather derivatives by the beverages industry. This dissertation tries to explore the level of understanding of the management in the beverages sector about the potential merits and de-merits of weather derivatives as a risk management tool. Interviews and a questionnaire are used to analyse the level of awareness about this risk mitigating tool within the industry. A lot of interesting issues emerged during this research that explained the apparent lack of enthusiasm among the breweries and beverages companies to embrace weather derivatives more wholeheartedly as witnessed in the energy sector.
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spelling nottingham-200102018-02-03T09:02:19Z https://eprints.nottingham.ac.uk/20010/ Weather Derivatives as A Risk Management Tool for Beverages Manufacturers and Breweries in The UK Ray, Chiranjib The weather has an enormous impact on the cash flow of a company. Weather risk has serious implications for a plethora of industries ranging from energy producers, agro industries, beverages producers to ski resorts and golf courses. According to US Department of Commerce, $1 trillion of their economy is sensitive to weather. An estimated 70 per cent of all businesses are affected by weather that extends across geographic and market borders. A literature review revealed that the end-users of weather derivatives are mostly energy and utilities companies. Not much has been written about the use of weather derivatives by the beverages industry. This dissertation tries to explore the level of understanding of the management in the beverages sector about the potential merits and de-merits of weather derivatives as a risk management tool. Interviews and a questionnaire are used to analyse the level of awareness about this risk mitigating tool within the industry. A lot of interesting issues emerged during this research that explained the apparent lack of enthusiasm among the breweries and beverages companies to embrace weather derivatives more wholeheartedly as witnessed in the energy sector. 2005 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/20010/1/05MBAlixcr2.pdf Ray, Chiranjib (2005) Weather Derivatives as A Risk Management Tool for Beverages Manufacturers and Breweries in The UK. [Dissertation (University of Nottingham only)] (Unpublished) WEATHER DERIVATIVES
spellingShingle WEATHER DERIVATIVES
Ray, Chiranjib
Weather Derivatives as A Risk Management Tool for Beverages Manufacturers and Breweries in The UK
title Weather Derivatives as A Risk Management Tool for Beverages Manufacturers and Breweries in The UK
title_full Weather Derivatives as A Risk Management Tool for Beverages Manufacturers and Breweries in The UK
title_fullStr Weather Derivatives as A Risk Management Tool for Beverages Manufacturers and Breweries in The UK
title_full_unstemmed Weather Derivatives as A Risk Management Tool for Beverages Manufacturers and Breweries in The UK
title_short Weather Derivatives as A Risk Management Tool for Beverages Manufacturers and Breweries in The UK
title_sort weather derivatives as a risk management tool for beverages manufacturers and breweries in the uk
topic WEATHER DERIVATIVES
url https://eprints.nottingham.ac.uk/20010/