Inbev And Anheuser Busch Analysis

In looking at the suit filed by Anheuser, we can closer examine how Anheuser- Busch was damaged through the actions taken by Mr. Thayer. Anytime that an insider trading scandal takes place, there is always damages and repercussions. The most identifiable damage is that of money and capital. Anheuser-Busch paid nearly $40 million more for the acquisition of Campbell Taggart due to the active trading of Mr. Thayer, and the rest of the insiders. It is easily identifiable, that one damage to Anheuser-Busch was a $40 million dollar excess payment to acquire Campbell Taggart. By exploring and understanding capital markets, we find other monetary damages to Anheuser-Busch. These damages come from the cost of ongoing lawsuits with the SEC as well as with the defendants, Paul Thayer, and the other insiders. Another monetary damage from the effects of the insider trading is the allocation of management resources during the legal battles and

Gera International is a well established international brand of beer that is ranked amongst the top three brands of beer in the world. With transportation prices rising, Gera International decided to purchase a plant in Antigua in 2005 and they renamed the subsidiary, Caribbean Brewers, Inc. (CBI). In 2008, the production facilities of CBI were expanded and their productive capacity doubled. Furthermore, we are then introduced to Jason Joseph a production manager who is unhappy and distressed because along with the production doubling, he lost ownership in the company, bonuses, and annual dividends. JJ comes to us (the financial advisor to the CFO) and informs us

Senior Management of PepsiCo is evaluating the potential acquisition of two companies – Carts of Colorado and California Pizza Kitchen – in order to expand the company’s restaurant business. If indeed PepsiCo decides to pursue the acquisition of one or both, they must decide how to align each of these business units in its historically decentralized management approach and how to forge relationships between the acquired business units and existing business units. In their evaluation, Senior Management is faced with the question of whether the necessary capital investment in order to purchase one or both of the businesses can be profitable for each of the acquired business units, but must

Boston Beer Company Mission statement is to “seek long-term profitable growth by offering the highest quality product to the U.S. beer drinker”

A documentary film made in 2009, Beer wars features and describes the American beer industry distinguishing between the large and small breweries. The large breweries feature some main corporate companies like Coors Brewing Company, Anheuser-Busch, and Miller Brewing Company whereas the small breweries include craft beer producers like Moonshot 69, Stone Brewing Company, Dogfish Head Brewery, Yuengling, and others. The documentary shows how the beer market is controlled through advertising and lobbying, which is harmful for the competition in the market. There is a reason why the small companies are falling behind and the large corporates are controlling the market, which in turn makes it essentially oligopoly economy.

The Boston Beer Company is currently the largest craft beer company in the United States, however, the craft beer industry is growing in an otherwise shrinking market increasing the amount of serious competition that The Boston Beer Company is facing.

Anheuser-Busch Companies, Inc. continually seeks opportunities to maximize shareholder value and increase efficiency. Through their extremely effective marketing

Several attempts have been made by Boston Beer Company to continue on a growth streak but not all attempts have been successful. The main goals for Boston Beer Company are to increase revenue and continue growing in the industry. Boston Beer Company has had trouble growing as barriers of entry are low and competition is high. Even though the market has seen a slight upturn, however Boston Beer’s founder Jim Koch elaborates on the company’s dissatisfaction, “We are disappointed with our depletion trends in 2016, which have remained weak so far in 2017. These trends are affected by the general softening of the craft-beer category and cider category and a more challenging retail environment with a lot of new options for our drinkers”. (https://www.fool.com/investing/2017/02/22/boston-beer-finds-growth-the-hard-way.aspx)

The Coors Brewing Company was founded back in 1873 by two German immigrants Adolph Coors and Jacob Schueler. The two combined invested $20,000, $18,000 of which came from Schueler and the other $2,000 from Coors. The location of the brewery was in the mining town of Golden, Colorado. This location was picked because Mr. Coors believed the key ingredient in beer was the water source. The river that flowed through this mining town was perfect for his beer. The two investors worked together for seven years until Coors bought out Schueler and became the sole owner of the brewery in 1880. When prohibition finally hit Colorado in the year 1916, Mr. Coors was forced to find other means of making money. The brewery was converted to produce malted milk which he would then sell to candy companies. Four years after Adolph Coors passing, in 1929, prohibition is ended and his son, Adolph Coors Jr., takes over the family business. The distribution range of the company quickly expands and by 1948, it stretches across 11 states. It would remain this way for almost 30 years before they start to expand to try and reach a nationwide audience. In 2005, now in its fourth generation of Coors family management, the Coors Brewing Company votes to merge with Molson Brewing Company in Canada to form the Molson Coors Brewing Company. Together they are the world’s seventh largest brewer. Two years later

Grand Metropolitan PLC is the world’s largest wine and spirits seller. It mainly operated in London, USA. In 1991, it beats market expectation with a 4.8% increase in pretax profits, and the company Chairman stated that company’s goal “to constantly improve on”. Despite the great performance in the world recession in 1991, the price of GrandMet shares was 10% below the average price/earnings ratio of the companies in the Standard & Poor’s 500 index. And more important, rumors had that GrandMet, valued at more than $14 billion in the stock market, maybe a takeover target. The management dilemma is to understand why the company’s stock is traded below of what considered being the right price and whether the company is truly

Volume decreased for the first time in over twenty years in 1975 by four percent, during that same time Coors started to push out further in an attempt to become a national brand. 1985 marked a major year for the company as it set records in volume sold and revenues from the brewing division. Between 1975 and 1985 there were major changes in the company that eventually led to the company possibly opening its second brewing facility in history in Virginia. Through these years there were many new strategies implemented to foster this growth. In this paper I will diagnose key decisions, analyze potential solutions and show the actions needed to achieve the suggested changes.

The merger of global brewing giant InBev with Anheuser-Busch created an even more dominant global brewer, Anheuser-Busch InBev. Since the merger in 2008 there were a variety of notable pros and cons I plan to share with you today. First and foremost, the merger of InBev with Anheuser-Busch created the world’s largest brewer with leading abilities to distribute all across the globe. In addition, this merger increased sales, stock prices skyrocketed, and earnings and profit margins rose steadily. Although the merger brought some great advantages to the table for Anheauser-Busch InBev, there were also a few recognizable cons. One of the most recognizable cons when evaluating the merger was the drastic changes in the corporate culture. “The corporate culture of the old A-B — tradition-bound, perfectionist, focused more on

In May of 2016, The European Commission signed off on Anheuser- Busch InBev’s more than $100 billion merger with SABMiller after the companies agreed to sell SABMiller’s premium brands in Europe and some other European operations (Bray). The merging of SABMiller and AB Inbev create the worlds largest beer company accounting for approximately 30% of beer industry sales (Bray). Margrethe Vestager, the commissioner in charge of European competition policy defended the decision to allow the merger to go through by stating “Today’s decision will ensure that competition is not weakened in these markets and that E.U. consumers are not worse off….Europeans buy around 125 billion euros of beer every year, so even a relatively small price increase could cause considerable harm to consumers” (Bray).

However, a fairly recent development has worked to change the culture at the company. In 2008 Anheuser Bush was purchased by a Belgium company, InBev. InBev is one of the largest alcoholic manufactures and distributors in the world and operates in over one hundred thirty different countries. Furthermore, the purchase significantly increased the size and scope of the parent company's operations. The company is so large that in order to complete the deal, the regulators in the United States required that InBev quit importing certain brands of beers under different labels to the U.S. market so that InBev would meet anti-trust regulations.

Hirotaro Higuchi (the protagonist), and CEO of Asahi Breweries, Ltd. must decide if he should increase its production and packaging capacity to meet the supply demands of their distributors, due to the company’s recent developments in the beer industry. Asahi Breweries has launched and seized a huge section of the dry beer market, ensuing from sales growth of 71.9% in comparison to the industry’s growth of 7.6%. A proposal has been made for, increasing their production capacity to 2,100,000 kiloliters to accommodate the recent shortages to their distributors. He has suggested an investment proposal plan of 230 billion yen within two years (1989 to 1990), to increase their brewing and packaging capacity by 30%. Hirotaro Higuchi must decide if he will welcome or dismiss this proposal. “Guiding change may be the ultimate test of a leader- no business survives over the long term if it can’t reinvent itself” (Kotter, 2007).