...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...
Words: 3089 - Pages: 13
...Competition 9 AB/InBev 9 SABMiller 11 Heineken 12 Craft Beer 13 External Trends 14 AB/InBev Trends 14 Water Management 15 Energy Use 16 Recycling 16 Government/Political/Legal 17 Economics 17 Internal Assessment 18 Growth Strategies 24 AB/Inbev Strategies 25 SAB Miller Strategies 26 Heineken Strategies 27 Craft Beer Strategies 28 Growth Strategy Advantages v Disadvantages 28 Space matrix 29 SWOT Analysis 30 IFE Matrix 31 Company Overview As the largest brewer in the world, Anheuser-Busch InBev (AB/InBev) has had quite an intense but creative history. In 1852, George Schneider, St. Louis brewer and saloon operator opened the Bavarian Brewery. Four years later, he expanded into a larger location for his brewery to operate due to positive production. However, shortly after the second opening financial problems resulted in Schneider having to sell his brewery to various owners. In 1860, as the brewery reached a worsening financial position, William D’Oench, a local pharmacist, and Eberhard Anheuser, a wealthy German-born soap manufacturer, purchased the brewery and saved it from bankruptcy (Anheuser-Busch, 2012). After nine years, D’Oench sold his half of the business and Anheuser became the sole owner of the brewery. Eberhard Anheuser’s son-in-law, Adolphus Busch, immigrated to St. Louis...
Words: 8148 - Pages: 33
...management: Page 21 Qualitative Analysis: Page 23 Organizational Citizenship: Page 24 Strategic Positioning: Page 30 Summary: Page 33 Appendix: Page 38 PCS Data Sheets: Page 38 Works Cited: Page 89 Introduction Boston Beer Company (SAM) is one of the fastest growing breweries in the United States of America currently holding the largest market share of craft brewers in the country, and 6th largest of all brewers. Founded in 1984 in Boston, Massachusetts and staying true to both its local and family roots, this high quality beer has become an icon throughout the nation. Another extremely successful and predominant corporation in the beverage-alcohol industry is that of Anheuser-Busch Inbev SA (BUD) which will serve for the purposes of this paper as a benchmark for how a firm should be performing and operating in this field. Being that Anheuser-Busch has been operating since 1852, has 13 breweries nation-wide, and is one of the most iconic breweries in the world, it truly is a unique comparison of “David vs. Goliath” for these two companies. The History of the Boston Beer Company Jim Koch, founding member of The Boston Beer Company, has a long proud history of brewing a robust, full flavored beer in his family. In fact, it was his great-great grandfather Louise Koch, who concocted the original recipe for the brands metaphorical bread and butter “Samuel Adams Boston Lager” which is by far the bestselling brand in the portfolio of beers the company holds and distributes...
Words: 19150 - Pages: 77
...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...
Words: 1925 - Pages: 8
...Identify and discuss the trends in the global beer markets. There are many trends in the global beer markets that effect how companies do business. One trend is that each country has different local taste and specific recipes to achieve their beer. China now has the largest beer market, surpassing the United States in 2003. The United States has six times a higher consumption of beer than China. The top three breweries of beer controlled almost 80 percent of the U.S. market. Vertical integration and economies of scales were the main drives to operating margins. “The fact that Anheuser-Bush could capture 75 percent of the industry’s total operating profits emphasized the volume effect in the industry” (Thompson, Strickland, & Gamble, 2010, p. C-251). Mexico was one of the world’s largest beer markets. Even though brewing has historically been a local industry, the last couple of decades have been increasing consolidation within the industry. The consolidation began to include breweries in the growth markets of Eastern Europe, Asia, and Latin America. The top 10 breweries account for 59% of the market in 2008. Beer consumption varies across the world. “In mature Western European markets volumes are broadly stable or declining modestly” (“Trends,”2008, p.14). In less mature markets in Asia and Eastern Europe are growing, and some at a rapid rate. Volume drivers have primarily been driven by growing disposable income, improvements in the quality of beer, marketing...
Words: 1637 - Pages: 7
...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,...
Words: 1976 - Pages: 8
... Budweiser Executive Summary The current business environment for a piece of the beer industry market is very competitive. Breweries must compete against other breweries, both large and small to remain a viable player in the sale of their beer. Budweiser is a product produced by Anheuser-Busch, an American brewery founded in St. Louis in the mid 1800’s. The intention of the following marketing plan is to not only continue to add to the legacy of Budweiser, but to re-energize the consumer’s appetite for Budweiser and increase the market share of the product. The formula for Budweiser is over 130 years old. The recipe has a unique blend of barley malt, brewer’s rice, yeast, water, and hops. These same five ingredients are what still goes into Budweiser today. We will promote how after 130 years the tried and true tradition of these five ingredients are the building blocks that give Budweiser its uncompromised flavor. In addition to the five ingredients, the seven steps in brewing Budweiser remain the same today. The seven steps are milling, mashing, straining, the brewkettle, primary fermentation, beechwood aging, and finishing (Budweiser Anheuser-Busch). Using the beechwood aging process allows more interaction between the beer and the yeast. This is the unique formulation that has propelled Budweiser into the staple beer which many others have imitated, but not quite duplicated. We will use Budweiser’s unique recipe and brewing process to market...
Words: 5396 - Pages: 22
...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...
Words: 6000 - Pages: 24
...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...
Words: 1068 - Pages: 5
...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...
Words: 7086 - Pages: 29
...Running head: HRM Issues/Diversification Strategies HRM Issues/Diversification Strategies Assignment #4 Nucor Corporation Strayer University BUS599016VA016-1116-001 Strategic Management August 21, 2011 Abstract This paper examines the trends in the global beer market. The paper will also examine the international expansions that were made through strategic partnerships with distributors in local markets. Foreign Market Entry and Diversification Assignment #3 Corona Beer Grupo Modelo’s corporate mission is, “To produce, distribute and sell quality beer, at a competitive price, optimizing resources and surpassing customer expectations, in order to contributeto the economic and social development of Mexico.” Corona Extra brand has become the fifth best selling beer worldwide and the number one imported beer in the United States. Corona is commonly served with a wedge of citrus fruit in the United States, Canada, Australia, and the United Kingdom. Today, Modelo products are available in more than one hundred and forty countries (http://findarticles.com/p/articles/mi_m0BEK/is_7_7/ai_55012912/). Identify and discuss the trends in the global beer markets. The world of beer is changing and evolving. The most interesting tend is happening in Germany. When most people think of beer they think of Germany. Beer production in Germany dropped 1.7% from 2009 to 2010. Beer consumption dropped 3% in Germany because many German consumers would drink coffee...
Words: 1426 - Pages: 6
...Anheuser Busch Corporate Research Team Two: Dustin Henderson Jeremy Bautista Daniel Watt Anthony Kuck Date Completed: April 1, 2010 Kim Marchesseault TO: Stefan.descheemaeker@A-B.com FROM: ResponsibilityMattersTeam@A-B.com DATE: 04/01/10 SUBJECT: Corporate Research Dear Mr. Stefan Descheemaeker: Attached is the proposal for a new tool in our fight against drunk driving. We have constructed a plan to use smart phones to include an Anheuser-Busch application that will calculate the costumers BAC level. The production time is approximately six months and is explained in detail in the report. We are eager to set up a meeting with you and set this project in motion. Sincerely, The Responsibility Matters Team Table of Contents Executive Summary 4 Current Situation of Anheuser-Busch 5-6 Background on Pressing Issues 6-11 Pressing Issues in Competitors Eyes 11-12 Comparing Anheuser Busch with Top Competitor 12-13 Analysis 13 Recommendation 14 Works Cited 15 Executive Summary As the leading distributor of alcoholic beverages in the world we have built our foundation with our commitment to being an effective, responsible, and productive corporation. Due to the nature of our business, our company must adhere to a number of laws and regulations that at times are restrictive to the business aspect of our corporation. In order...
Words: 4200 - Pages: 17
...“Corona Beer (Modelo)” Foreign Market Entry and Diversification Richard J. Bradley Professor Brian Grizzell Strategic Management – BUS599 Strayer University February 9, 2012 Abstract This analysis outlines Corona Beer (Modelo) and its current strategy and position amongst the competition in the beer industry. The key question addressed is the ability of Corona Beer (Modelo) maintaining status as an industry leader among beer producers and distributers. The trends within the global beer market are also examined as it impacts Corona Beer (Modelo). A competitor analysis will be discussed and how Corona Beer (Modelo) will need to perform and react in the ever changing international markets. There will also be strategic challenges identified and how the company will handle them while facing various options and recommendations to address such challenges. In addition this analysis will outline and dissect trends affecting global beer markets. My analysis will examine how the international expansion of Modelo was initiated by strategic partnerships with various seasoned beer distributors. The analysis will also focus on Modelo and an effective strategy to enter foreign markets for success. The discussion will cover the varying challenges Modelo may encounter from the competition. By 2010, beer sales dropped some 1.5% in the United States America and slightly higher in western Europe with 2.3% (The Economist, 2011). The amount of beer consumed in blossoming...
Words: 2408 - Pages: 10
...Page 1 GRUPO MODELO CASE ANALYSIS BY Page 2 Table of Contents: Financial Ratios Performance..............................................................................…………………..Pg.3 Primary Objectives and Summary............................................................................................Pg.4 Market Overview......................................................................................................................Pg.5 Key Success Factors..................................................................................................................Pgs.5-6 SWOT ANALYSIS........................................................................................................................Pg.7 Strengths...........................................................................................................Pg.7 Weaknesses.....................................................................................................Pg.7 Opportunities..................................................................................................Pg.7 Threats............................................................................................................ Pg.7 Recommendations................................................................................................................Pgs.8-9 Exhibit 1: Financial Ratios......................................................................................................Pg. 10 Exhibit...
Words: 3713 - Pages: 15
...2010). Beer consumption is continuously increasing not only in the United States but also globally. There are several trends within the global beer market which accounts for the potentials seen throughout the industry. One of the main trends of the global beer industry is the growth rate. The growth rate globally over the past five years is reported at 3.5%. “The largest contributors to this growth have been China (now the world's largest beer market), Africa and Eastern Europe” (SABMiller Investors, 2011). Another trend seen in the industry is consolidation. At the beginning of the twenty first century there were ten major brewers accounting for one third of the beer sales. Today there are four top brewers which include “Anheuser-Busch InBev, SABMiller, Heineken and Carlsberg – accounting for almost 50% of beer sales volumes and up to 75% of the global profit pool” (SABMiller Investors, 2011). This is due to the increase in consolidation. Another trend in the beer industry is premiumisation. This term refers to the sales of premium beer brands. “As economies improve, the trend towards premium will resume as consumers become more willing to pay for authentic, more image-oriented brands that reflect their socio-economic and lifestyle aspirations” (SABMiller Investors, 2011). Discuss how Modelo’s international expansion was made possible through strategic partnerships with experienced distributors in local markets. This is a case analysis of Corona Beer (Modelo). ...
Words: 1526 - Pages: 7
