Case Analysis Of Ab Inbv

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In July 2008, the iconic American beer, Anheuser-Busch, agreed to an acquisition by a Belgium based brewer, InBev NV. Anheuser-Busch, the world’s fourth largest brewer, was a century old publicly traded company with dominance in the United States with a small presence internationally. InBev was a result of a merger between Interbrew, the world’s third largest brewer with strength in Europe and North America and AmBev, the world’s fifth largest brewer with strength in Latin America. After the completion of the deal, the newly formed company, A-B InBev, would become the largest global brewer. A-B InBev would have an advantage in reducing expenses due to synergies between the organizations and strengthen their global presence. In the US, market growth was close to stagnant, only increasing by less than 1% and of that growth in the US, the craft brewed segment was growing at 11%, that trend would decrease…show more content…
Anheuser-Busch’s longstanding brand recognition and US distribution gives the brands formerly under InBev an advantage in the market. Adding a product line to a current distribution chain can be less costly and faster than setting up a new product for distribution. InBev’s fierce commitment to cost cutting and recognizing synergies would help the Anheuser-Busch existing format become more profitable. Much of the cost savings would start immediately with the merger of the corporate cultures. Anheuser-Busch would have to fall under many of the ways InBev had been working for years, from office space to budgeting. Each year, all budgeted expenses would have to be explained as if it had not been there in years past. The idea of doing things a certain way because it had been done that way over several decades was now

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