...Anheuser Busch Inbev SA (BUD) Anheuser-Busch InBev SA/NV, a brewing company, engages in the production, marketing, distribution, and sale of beer. The company offers a portfolio of approximately 200 beer brands. Its international principal brands include Budweiser, Stella Artois, and Beck’s; multi-country brands consist of Leffe and Hoegaarden; and local brands comprise Bud Light, Michelob, Skol, Brahma, Antarctica, Quilmes, Jupiler, Hasseroder, Klinskoye, Sibirskaya Korona, Chernigivske, Harbin, and Sedrin. The company also produces and distributes soft drinks. Anheuser-Busch InBev SA/NV sells its products in 120 countries. The company was founded in 1366 and is headquartered in Leuven, Belgium. Let’s examine its financial info. BUD’s Current Ratio ranges from 0.6 to 1 in five year’s period and Quick Ratio ranges from 0.5 to 0.9. Those figures show BUD’s ability to pay back it short-term liabilities (debt & payables) is not so good, and it is not in good financial health. The company is not very liquidity. Craft Brew ‘s Current Ratio ranges from 0.8 to 1, better than BUD, but its quick ratio is worse, ranging from 0.1 to 0.3, indicating its low liquidity problem. BUD’s Fixed Asset Turnover Ratio ranges from 1.5 to 2.5, indicating that the company has been more effective in using the investment in fixed assets to generate revenues. However, Total Asset Turnover ratio is much lower, ranging from 0.2 to 0.4, indicating it is not effective in using its total assets to...
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...Anheuser-Busch Incorporated/InBev: Do they still hold the crown for the “King of Beers?” Shawna L. Bendinger International Business MT3000 Dr. Carl W. Proehl August 23, 2015 Abstract The Anheuser-Busch Company, Incorporated was once described as one of “America's greatest well-liked Corporations” by the Magazine of Fortune and were positioned one hundred and forty-two in the Fortune Five hundred. From its beginning as well as historical indicators, to its multiple products, prohibition, their trademark Budweiser, the Budweiser Clydesdales, and the Budweiser Frogs, to its financial issues, the acquisition, to their controversies such as the “ethical aggravation, Spykes juvenile, marketing of Alcohol, environmental documentation, and the Budweiser statement.” Plus, the company’s most recent controversial marketing strategy appearing in April of this year, “Up for whatever.” Add the shenanigans and controversial court rulings of alleged vehicular homicide and negligent homicide charges of two separate women against August Adolphus Busch IV, has the ‘King of Beers’ lost its crown, has the ‘Prince’ turned back into a ‘Frog’? Outline I. History A. Established B. Prohibition C. Acquisition 1. 1852, St. Louis, Missouri, Eberhard Anheuser, Adolphus Busch 2. From 1920 to 1933, under the Eighteenth Amendment of the Constitution prohibiting...
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...an industry where sales growth remained stagnated. Also, since consumers rarely ‘traded down’, companies offer one premium or super-premium brand. This was basically aimed at broadening the segment niche by using advertisement messages which showed an appealing lifestyle and highlighted the benefit of ‘trading up’ to this level of beer. However, growth existed in the emerging markets such as China and this market was characterized by ‘imported’ beers or beers from large international brewers that looked for presence and market share. Different companies competed with different methodologies. InBev was more un-orthodox in its competitive approach as it had a grow/defend/maintain matrix that adhered to different markets. The sales did not come from advertisement campaigns but instead through local brands and its interest in targeting the masses with one of its matrixes. Anhueher-Busch however competed...
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...The Anheuser-Busch InBev Corporation In the United States, different companies pride themselves with the length of time the company has been in operation. Thousands can say that their company has been in operation for over 50 years; however many cannot say their company has been in operation for a century or two. Anheuser-Busch InBev is one company that has been in operation for over 150 years. The following information is an attempt to give insight on Anheuser-Busch InBev’s success through the company’s history and examination of the company’s financial reports. Please note these reports are in European Currency (Euro’s). Company History The Anheuser-Busch company started in 1852 under the name of Bavarian Brewery out of St. Louis, Missouri (Anheuser-Busch, 2009). In 1860 a successful soap manufacturer by the name of Eberhard Anheuser purchased the struggling company without any knowledge or experience in the industry. With the help of his son-in-law Adolphus Busch, the company became an industry leader in the production of beer (Anheuser-Busch, 2009). Through the years, the company continued to grow by using different marketing techniques and strategies to help bring attention to the company’s products. One famous marketing technique introduced in the 1880s was the Budweiser Girls. In 1876, Budweiser became the first beer to be introduced on a national level and to help promote the company’s number one product; the company used lithographic prints depicting women holding...
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...State of the Industry The beverage industry is a large part of the U.S. economy representing $354.2B in sales. Of this market, approximately 60% of sales come from alcoholic beverages, with beer making up 49% of this and the remainder going to liquor (37%), and wine (15%). Despite the strong market share for beer in the U.S., sales are sliding. Since 1999, the market share for beer has decreased from 56% to below 50%. Wine sales have been flat, so consumers are beginning to switch from drinking beer to drinking liquor. There appears to be a general shift in preference among consumers to prefer other types of alcoholic beverages to beer. In addition to losing sales to a different beverage option, Budweiser is losing market share in the U.S. beer market. At its peak in 1988, Budweiser sold 50 million barrels. In 2013, consumption was down to 16 million barrels and market share had decreased from 14.4% to 7.6% in ten years. Part of this is due to cannibalization of sales from other Budweiser products, such as Bud Light. This shows a macro change in consumer preferences, favoring options with fewer calories to help combat weight-gain. Another big reason for the decrease in sales is due to consumers switching to the craft beer market. In 2015 sales for craft breweries were estimated at 24.5 million barrels (a 13% increase since 2014) and dollar-sales were just over $22 billion (a 16% increase from 2014). These sales have given the craft brewery industry a 21% share of the beer...
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...nheuser-Busch InBev Company Profile Anheuser-Busch InBev is a publicly traded company (Euronext: ABI) based in Leuven, Belgium, with American Depositary Receipts on the New York Stock Exchange (NYSE: BUD). It is the leading global brewer and one of the world's top five consumer products companies. Beer, the original social network, has been bringing people together for thousands of years and our portfolio of well over 200 beer brands continues to forge strong connections with consumers. We invest the majority of our brand-building resources on our Focus Brands - those with the greatest growth potential such as global brands Budweiser®, Stella Artois® and Beck’s®, alongside Leffe®, Hoegaarden®, Bud Light®, Skol®, Brahma®, Antarctica®, Quilmes®, Michelob Ultra®, Harbin®, Sedrin®, Klinskoye®, Sibirskaya Korona®, Chernigivske®, Hasseröder® and Jupiler®. In addition, the company owns a 50 percent equity interest in the operating subsidiary of Grupo Modelo, Mexico's leading brewer and owner of the global Corona® brand. AB InBev’s dedication to heritage and quality originates from the Den Hoorn brewery in Leuven, Belgium dating back to 1366 and the pioneering spirit of the Anheuser & Co brewery, with origins in St. Louis, USA since 1852. Geographically diversified with a balanced exposure to developed and developing markets, AB InBev leverages the collective strengths of its approximately 116,000 employees based in 23 countries worldwide. In 2011, AB InBev realized 39.0 billion...
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...The biggest producer of beer in American is Anheuser-Busch (AB). Formally the largest brewer in America, Anheuser-Busch is now part of the global beverage company InBev, the maker of approximately 200 brands of beer and soft drinks that primarily includes Stella Artois, Becks, Leffe, Hoegaarden, Skol, and Michelob. AB InBev, through its interest in Grupo Modelo, also offers the Corona brand. The company is valued at 130 billion dollars with revenues over 31 billion worldwide. The flagship product is Budweiser, the most popular beer brand in North America with a 20% market share along with Bud Light. Part of the reason for this control of the market is the complex system of distribution in the beer industry put in place since the end of prohibition. This system has enabled brewers to tightly control their distributors and in turn, distributors have control of their individual markets. Before prohibition, brewers controlled their own bars. If you wanted Budweiser you had to go to a Budweiser bar. They provided the bar owners not only with beer but gave loans for furniture, beer equipment and other needs. They required the owners to carry only their brands. After the repeal of prohibition, states enacted strict laws to control the alcohol industry. The three-tier system of beer distribution was developed. This is a 2-level vertical marketing system where the brewer awards a distributorship to a geographic area. AB does not sell directly to consumers; they sell Budweiser to the...
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...Global operations, and supply chain d. Compensation and appraisal system e. Employe\\e culture, employee relations, and practices IV. Conclusion a. Thoughts about the project b. How it effects professionals careers c. Thoughts of working individually than in a team. The story of this famous beer dates before any of us where even thought about. This here is a story of raw entreprenuership destined for a family to create. It starts with Adolpus Busch, who as a boy spent his childhood developing skills of winery and brewing since he is the son of a brewer. In 1857, Adolphus cam to the states bringing along his newly developed talents that would began a change in a way that Americans see beer. Aldophus began to work for his father-in-law brewing company E. Anheuser& Co. He soon became a partner in the company, establishing the Anheuser-Busch Co. By adapting to Americans love for robust dark ales and lighter Bavarian style lagers,...
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...Revenue/Turnover 43195.0 Fiscal year end December Employees 154,587 Euronext Brussels Ticker ABI Key facts courtesy of Market line. Executive Summary Anheuser-Busch roots can be traced back to 1366 in Leuven, Belgium. The Anheuser & Co Brewery was founded in St. Louis, USA in 1852. Over the years with many mergers and acquisition worldwide Anheuser- Busch grew to become the world’s biggest beer company. Known worldwide for their tag line “King of Beers”. Anheuser-Busch currently owns approximately 44.9% of the industries market share, with more than 200 highly recognizable brands within...
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...After the merger, Anheuser-Busch Inbev would become the world’s largest producer of the beer. I believe that the newly merged company is in a good position to move forward and consolidate its newly acquired supremacy. It can derive its merger experience from the merger of Ambev-Interbrew. It can follow the similar path it followed during the earlier merger though it would have to customize the newly formed company to suit to the preferences of North American customers. The board can take the following actions to create value to the company’s shareholders Brand Portfolio ABInbev offers a wide variety of portfolio of more than 300 brands including Becks, Stella Artois, Leffe Hoegaarden, Jupiler, Budweiser, Michelob among others. The company should draw plans on how it should leverage the brand portfolio to aggressively penetrate into the new and existing markets. Find Common Synergies The merged company should find the common synergies like the way it has done during Ambev-Interbrew merger. Cost savings can be made by leveraging the existing facilities of Anheuser-Busch to bottle the Inbev’s portfolio of brands. There are also synergies that can be obtained in the Marketing area. Follow work culture of Inbev The newly formed company should follow the Inbev’s meritocratic culture as defined by one of Inbev’s shareholder, Jorge Paulo Lemann. There are significant cost savings to be made by doing away with luxurious executive offices, corporate planes and expensive perks the...
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...Anheuser-Busch Companies, Inc. Executive Summary Overview Sector: Consumer Staples Industry: Brewers Ownership: Public Parent: Anheuser Busch-Inbev Company A wholly-owned subsidiary of Belgium-based Anheuser–Busch InBev, is the largest brewing company in the United States. The company operates 12 breweries in the United States and nearly 20 in other countries. It was, until December 2009, also one of America's largest theme park operators; operating ten theme parks across the United States through the company's family entertainment division, Busch Entertainment Corporation. It is headquartered in St. Louis, Missouri. AB’s objectives as a corporation are: * To increase domestic beer segment volume and per barrel profitability which, when combined with market share growth will provide the source for earnings per share growth and improvement in return on capital employed. * To provide a great tasting fresh beer to our consumers by limiting self life to 110 days, and providing a “born on date” on all our products. * To build a high-performing, diverse workforce, while providing a safe, productive and rewarding work environment, in which all our employees can benefit. * To be a good corporate citizen and good neighbor in every community where we do business and promote the responsible consumption of our products. * To preserve and protect the environment and support communities where we do business, by complying with all applicable environmental...
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...of origin, and our nationalistic “pride of ownership.” Switch perspectives a bit, and consider how international consumers might value the quintessential American beer. Do you think that coming from the US enhances the value to overseas customers? Why or why not? (Blenkinsop & Geller, 2014) In replying to other classmates, discuss the consumer perspective, thinking about your own exposure to Budweiser’s products and promotions. Include your thoughts on the value of any of the AB brands. Even though I am not a beer drinking but during socializing events majority of my friends and the people I have observed prefer international beer (i.e. Russian, German etc). During the initial stages of the InBev buyout of Budweiser the response was not that great Hence, the AB InBev buyout adopted to understand and address factors hindering Budweiser’s growth in the US as well as build or introduce the brand in other markets helped them achieve strong in-market performance globally. In addition, the brand is now successfully developing a universal positioning, which in itself is a near impossible task for any brand, particularly within the beer category. Even in Muslim countries like Saudi Arabia where alcohol is banned, you can find non-alcoholic beer from Bud. In addition, launching the anticipation campaign in the US resulted in a positive change in consumers’ imagery perceptions of Budweiser between 2010 and 2011, particularly...
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...Foreign Market Entry and Diversification Johnnie Farmer Dr. Travis O. Davidson Strategic Management – BUS 599 November 7, 2011 Identify and discuss the trends in the global beer market Even though the United States has the largest beer market China surpassed them in 2003. Americans are drinking more beer and the consumption per capita remained almost six times higher in the United States than it is in China. There are three brewers controlling 80% of the U.S. market, Anheuser Busch with 45%, Miller Brew with 23% and Adolph Coors with 10%. There were also 300 regional craft breweries that struggled to make a profit because of vertical integration and economies of scale which were drivers of operating margins [ (Thompson, Strickland, & Gamble, 2009, pp. C-250) ] Mexico is one of the largest beer markets in the world. They have a variety of brands with lots of different taste. Even with the mix of taste, Mexico is split between two producers and few microbreweries. These companies are FEMSA and Grupo Modelo. Grupo Modelo captured 62.8 % of the Mexican market in 2007 while FEMSA captured the remaining 37.2% [ (Thompson, Strickland, & Gamble, 2009, pp. C-251) ]. As a whole, the beer industry is expected to post a third consecutive year of declining sales in the U.S. for the first time in more than 50 years. . Shipments from beer manufacturers to wholesalers, a standard industry measure, are expected to fall by as much as 2 percent in 2011, according to Beer...
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...Callie Gizicki November 22, 2004 Negotiation Styles Activity You are currently a sales representative for West Side Beer Distributors, and you have just received your new sales route. One of your biggest accounts that you must focus on is the B.O.B. The B.O.B has just hired Joe Smith, the new General Manger. His goal is to turn the company around and increase sales. He is in charge of the second floor which consists of two bars and is currently in the process of opening up a sport’s bar too. Sales have been low for the past three months. The draft beers include Miller Lite, Coors Light, Bells Winter White, Guinness, and Rolling Rock. They carry Bud and Bud Light in bottles but not on draft. There have been requests for it in the past but it has never been offered on draft. Advertisements and promotions are in desperate need. The new General Manager has managed at restaurants for the past 10 years and has been very successful. Your main goal is to replace Miller Lite with Bud Light on draft. However, you are not very familiar with Joe’s negotiation style since you have never met him before. This is a big account so you must be ready to sell him your product. Therefore you must be prepared for each one of the five styles. 1) Describe what Joe’s characteristics would be for each negotiation style and tell how you would adapt to it. Be sure to include what style you would use for each of Joe’s different styles. 2) Research your competition (e.g. Miller...
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...found a good pool of talent. But she says, “Sometimes I get inquiries from very strong candidates in the top 10 percent of their class” at other schools, and she doesn’t want them to slip away. Although the insurance company is growing and hiring sales representative, Nowak can’t afford to fly across the country for a handful of interviews, so she has set up an online recruiting and selection system. Students at distant schools can view online presentations about the kinds of positions the company has available. And when an interested prospect seems like he or she might be a good match. Nowak can use Web-based interviewing to narrow her choices. The company invites those who survive the cut to fly to head-quarters for an interview. Anheuser-Busch InBev is another company that recruits on college campuses. Elatia Abate, the company’s global director of recruitment and strategy,...
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