Purpose: The purpose of this paper is to provide the underlying constructs that connect the operational and financial performance of firms with the competitive environment surrounding the brewing industry in Europe. Design/methodology/approach: The selected method of study is exploratory and confirmatory factor analysis, and subsequently applying structural equations modelling. We have sampled 214 brewing companies distributed in over 12 European economies. Findings: The study provides a comparison between different antecent studies, including contextual contrast in both an industry and a methodologic perspective. The study shoes that the competitive construct of the industry is significantly related with the financial performance of firms, however not necesarilly to the operational results. Additionally, the operational structure of the firm does not necesarilly provide significant relationship to the firms' financial results. Research limitations/implications: The research is segmented within the European brewing industry, hence we find potentian geographic delimiations in terms of the conclusions of this paper. Originality/value: Significant relationships between competitive variables and financial performance in the brewing industry remains evasive in research thus far. Additionally, sustained in the potential the brewing industry represents within Europe, it is significant to identify these relationships for readers on both an academic and industrial background.