...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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...hands, 6 feet and only 30 seconds to be part of it. You would have just felt like a marketing executive at Anheuser-Busch Brewing Company, the maker of Budweiser beer. The marketing department purchased a commercial spot during the 2013 Super Bowl with its iconic mascot, a Clydesdale horse. The interesting history of this company along with the characteristics of its iconic mascot and the amounts of money to advertise during the Super Bowl is amazing. First of all, the Anheuser-Busch (Budweiser) Company adopted the Clydesdale horse during the depression, around the 1930’s. August A. Busch, Jr. presented his father, August A. Busch, Sr., with a gift. It was a Studebaker beer wagon with a perfectly conformed six horse hitch of Clydesdales (Wikipedia 2013; http://en.wikipedia.org/wiki/Budweiser_Clydesdales). The Clydesdale horses are mostly used in exhibitions and parades because of their size and grace. Secondly, is the main characteristics of these massive animals are their colors. There are different shades of Bay, Brown, Chestnut and Black predominantly, but with a white underbelly as well as a white feather (long hair) over their ankle to their hooves (Wikipedia 2013; http://en.wikipedia.org/wiki/Budweiser_Clydesdales). Their average growing is over 2,000 pounds and stand 18 hands (6 feet) tall; they are known for their grace and to become part of the Anheuser-Busch family is specific. The Clydesdale horse must be at least 4 years old, stand at least 18 hands (6...
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...The History of Anheuser-Busch More than one hundred and twenty years have passed since Adolphus Busch first introduced Budweiser to the United States. And although much has changed over the years, the "spirit of Adolphus and his great dreams remain unchanged, as vibrant today as it was a century ago"(www.anheuser-busch.com). Through several successive generations of Busch family leadership, Budweiser has become an authentic, truly genuine, American beer. These superior qualities are the result of Busch’s original dreams and visions, the stable leadership through three major crises, and the diversification of a company over the years. The story begins with Adolphus Busch. Born in July of 1839 in Kastel near Mainz, Adolphus was the second youngest of twenty-one children. After studying at the Gymnasium in Mainz in Germany, he immigrated to the United States in 1857, and soon after married Lily, the daughter of a successful St. Louis businessman Eberhard Anheuser. Anheuser was also a German immigrant, and had recently obtained a local brewery in St. Louis. Adolphus began as a salesman who sold brewing supplies to Anheuser. Adolphus soon worked his way into the family business and up the corporate ladder, and eventually became a partner and finally the company’s president. With great dreams and aspirations, Adolphus was considered the driving force of the company that would eventually transform it into an industry giant. Because of this, many see Adolphus Busch as the founder...
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...MillerCoors vs. Anheuser-Busch Salman Boer Carly Gorka Stephanie Kalin Kenny Koelling Felipe Naranjo Nizam Qutubuddin Executive Summary The beer industry in the United States is an extremely competitive one. For years, the industry has been solely dominated by one contender, Anheuser Busch. However, large brewers have always been looking for opportunities to extend their reach in the industry and gain more market share. Miller Brewing Company and Coors Brewing Company have been historical staples of the American beer industry since the nineteenth century. These companies merged with international giants South African Breweries and Molson, respectively, in efforts to better compete in the United States brewing industry. However, they still could not manage to take a share of the Anheuser Busch Empire. SABMiller and Molson Coors saw an opportunity in forming a joint venture that would be able to successfully compete with Anheuser Busch in the beer industry, and in 2008, created a third company called MillerCoors. The creation of MillerCoors was a success. Since the creation of the company, in June 2008, MillerCoors has been very profitable and has enjoyed steady growth in their market share. They have done this by integrating innovation as a major goal in their products, providing them with a certain level of differentiation, while reducing costs through the exploitation of synergies that exist in their different processes. MillerCoors was one of the very...
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...Management 303 SWOT Analysis of Anheuser Busch Section 1 Organizational history In 1843 Eberhard Anheuser immigrated to the United States from Germany, after settling in St. Louis he became part owner of Bavarian Brewery in 1852. In 1860 Anheuser bought out other investors and changed the name of the brewery to E. Anheuser & Co. In 1861 Adolphus Busch married Eberhard’s daughter Lilly. In 1869, Adolphus bought in and gained half-ownership in the brewery. In 1879 the name of the brewery became Anheuser-Busch Brewing Association. In 1880, Adolphus Busch became president of the brewery following the death of his father in law. In 2008 Anheuser-Busch merged with INBEV to become Anheuser-Busch INBEV. After this merger, this company has become the world’s largest brewer and one of the top five consumer goods companies (ABWEBSITE). Section II: Strengths and Weaknesses Strength 1: Advertisement One key to the success of AB-InBev over the years is their creative use of advertising. Year after year this company continues to be one of the top purchasers of commercial airtime during the Super bowl. Spending an average of 30 million dollars per Super bowl (STLTODAY). The use of slogans and themes for advertising campaigns over the years has helped to build a loyal following and universal brand recognition. Another strategic move was made by AB in 1955. At this time August Busch Jr. made the move to associate his product with the game of baseball. Over the years...
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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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...BUSINESS ETHICS ------------------------------------------------- Anheuser-Busch ------------------------------------------------- Corporate Social Responsibility in marketing and advertising ABSTRACT The area of corporate social responsibility (CSR) is a constantly evolving field with direct impact on an organizations strategies and success, and it has become an important part of how the beer making industry promotes and advertises itself. Current portrayals of corporate social responsibility in the beer making industry are misleading and do not show the true nature of these practices. Relatively little research has been conducted on how the beer making industry promotes corporate social responsibility in their attempt to promote and facilitate other business interests. This case study will attempt to investigate the beer making industry’s recent corporate social responsibility endeavors and engagements and explain how they run in concurrence or adjacent to the industry’s political and corporate strategies. Anheuser-Busch Companies, Inc. is an American brewing company and a wholly owned subsidiary of Anheuser-Busch InBev (AB InBev). The company operates 13 breweries in the United States and became the largest brewer in the United States in 1957. They also currently have four of the top ten selling beers and rank as one of the top five consumer products companies in the world. Anheuser-Busch International, Inc. was established in 1981 as a subsidiary responsible...
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...Anheuser-Busch-Campbell Taggart Background Anheuser-Busch is a brewing company that is based in St. Louis, Missouri. After several changes in owner ship during the mid 1800’s, the Bavarian Brewery on South Broadway belonged to a local pharmacist named William D’Oench who was the silent owner until he sold hos share on the brewery on 1869. The other was a man by the name of Eberhard Anheuser, a successful soap manufacturer. Adolphus Busch, who was a German immigrated, who in 1891 married Eberhard’s daughter. In 1869, Busch purchased D’Oench’s share in the brewery. Adolphus Busch was the first American brewer to use pasteurization to keep beer fresh. Fast-forward to the year 1957 and Anheuser-Busch is the largest brewer in the United States. On July 13, 2008 Anheuser Busch and soon to be owner InBev agreed on a deal that InBev would purchase Anheuser Busch for $70 per share Creating Anheuser-Busch InBev. To Sue or Not Sue? In 1982, people said that Anheuser-Busch couldn’t grow anymore after having 32% market share of the brewing industry. They decided to tackle snack food industry to expand their market share. They focused on the low cost producer of bake goods and snack food. At year-end in 1981 Anheuser-Busch posted revenues of $3.8 billion and earnings per share of $4.77 and a dividend of $1.38. Compare this to Campbell Taggart of $1.2 billion in revenue and $2.61 earnings per share, Anheuser-Busch doubles in revenue and in EPS. This shows that an acquisition of...
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...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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...Light even though it may cause them to get in trouble. There are those who can have one drink and those that can have several but then they have little control of there emotions. For each person Bud Light may have a different affect it can depend on weight, if you have ate anything in the last few hours, how frequently you drink beer, and if you are on any medications. Bud light has been around for many years, since long before I was ever born. Anheuser-Busch is the company that produces Bud Light. Anheuser-Busch traces its origins back to the Bavarian brewery, which was established in 1852. In 1860, Eberhard Anheuser acquires Bavarian Brewery and renames it E. Anheuser & Co. Eberhand had a daughter named Lilly and in 1861 she married Adolphus Busch. After three years of marriage Adolphus began working at his father-in-law’s brewery. In 1876 the beer Budweiser was introduced. Nineteen years later since the first name change and another name change was made yet again to become Anheuser-Busch Brewing Association. In 1880, Eberhand Anheuser dies and Aldophus Busch becomes president of the brewery. The first artificial refrigeration was used at the brewery in 1881. The beer Michelob was introduced in 1896. By 1901, there were one million barrels of beer being produced annually. Once Adolphus Busch dies August A. Busch Sr. becomes president and only twenty one years after August being president he dies and Adolphus Busch III becomes president. In 1936 Budweiser was sold in cans for...
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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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...Answer To Complaint Justin King Case Civil Litigation Unit 5 IN THE CIRCUIT COURT FOR KANSAS CITY, MISSOURI Justin King - Plaintiff v Anheuser Busch - Defendant * * * * * CASE NO. Answer to Complaint COMES NOW, Anheuser Busch, the Defendant, and hereby answers the Plaintiff’s Complaint as follows: PARTIES 1. As to paragraph 1, it is hereby admitted in part. Defendant resides in said county. As for the other allegations, Defendant does not have sufficient knowledge to form a belief as to the truth of the allegations, and on that basis, denies the allegations. 2. As to paragraph 2 and 3, it is hereby admitted in part. One of Anheuser Busch’s trucks was driven in Ford County, Paxton, Illinois, which passed a motorcycle driven by the Plaintiff. 3. As to paragraph 4, it is hereby admitted in part. The Defendant passed the motorcycle in Paxton, Illinois as follows: a. Defendant must flash lights to indicate he wishes to pass. b. The Plaintiff is required to move over if conditions allow. c. Part of Defendant’s shipment did fall off truck, however, Plaintiff, could have slowed down, or swerved a different direction. d. Had the Plaintiff worn protective headgear as required by the State of Missouri, this accident may not have been as sever. Affirmative Defenses 4. The Plaintiff assumed...
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...prevent the monopoly, infact, promoted the size and strength of the largest beer corporations. An oligopoly was formed and maintained between Anheuser Busch, Coors, and Miller. Porter’s Five Forces Model is a business strategy that was covered in Beer Wars. Anat Barron described how difficult it was for small craft beer makers to be new entrants to the beer industry. When Anheuser Busch felt the least bit threatened, they had the capital and access to distribution channels that the smaller breweries did not have. The craft breweries found it greatly difficult to compete with the big 3 because they were not a substitute for the Big 3’s product, they were a small competitor. Anheuser Busch controlled the bargaining power because they were able to keep prices down due to their size and pockets while small craft breweries had to be more expensive because of the quality and care that went into it on top of having to pay a higher rate for ingredients compared to the other large corporations. To cite an example of the deep pockets that the big 3 had, Anheuser Busch came out with beer with caffeine in response to Moonshot beer, which was a craft beer (and the first of it’s kind). It can be viewed as theft but they had the pockets to Moonshot out. They targeted the bars and stores that carried Moonshot and gave them free cases of Anheuser Busch’s version of Moonshot beer. Though...
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...IN THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF ILLINOIS JUSTIN KING ) ) PLAINTIFF, ) ) CIVIL ACTIONS NO: ____________________ vs. ) ) ) JUDGE: _____________________________ ANHEUSER BUSCH and ) FRANK CUELLAR ) ) DEFENDANT ) COMPLAINT COMES NOW, plaintiff, Justin King and for his complaint, alleges as follows: 1. Plaintiff, for all times mentioned herein, was a resident of the County of Paxton, State of Illinois. 2. Plaintiff is informed and believes and thereon alleges that defendant, Anheuser Busch, was and is a business primarily operating out of the County of St. Louis, State of Missouri. 3. This is an action for damages in excess of $75,000.00, as required by 28 USC 1332. 4. Plaintiff is informed and believes and thereon alleges that at all times and places herein mentioned defendant, Frank Cuellar, was operating a certain 1992, Nissan UD2000 B, 24ft straight truck, WHITE in color, PLATE NO. 07 MO 968-7RL., fully loaded with cases of Anheuser Busch product. 5. At all times herein mentioned plaintiff was and now is the owner of a certain 2006, Harley Davidson X-73, motorcycle, BLACK in color, PLATE NO. 07 MO 327-HP8 6. At all times herein mentioned Interstate 57 was and now is a public highway running in a general northerly and southerly direction. 7. On or about the 8th day of April, 2004 plaintiff was operating his automobile in a prudent and careful manner in a general...
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