The Acquisition of Anheuser-Busch Breweries: A Case Study

Anheuser-Busch “is among the global company’s largest and most technologically capable breweries” (About, n.d.). On Anheuser-busch.com, you can find a lot of information about the company and their products. The headquarters of Anheuser Busch is located at One Busch Place St. Louis, MO 63118 (About, n.d.). The most known beer families that they produce are the Budweiser and bud light Family. There are numerous brands that Anheuser-Busch produces aside from Budweiser and Bud light. Initial searching for Bud Light Company because most of my family is enthralled by this beer, and upon further researching the beer brand, it was surprising to find that it was actually owned and manufactured by another company, Anheuser-Busch, that also manufactured

After its mission statement, the company enumerates its values in support of the mission statement. The values are the following:

     In this paper I will be talking about the U.S. beer industry and in short an overview of the brewing industry worldwide. I will talk about the barriers to entry, economies of scale, government intervention, pricing, current market trends, product differentiation, and imports. The focus being mainly on the U.S. brewing industry oligopoly. The U.S. brewing industry has three major players: Anheuser-Busch, SAB Miller, and Coors/Molson. Anheuser-Busch is currently the largest brewer in the world, producing over 100 million barrels a year. Anheuser-Busch currently owns over 50% of the market in the United States, with Miller trailing behind at 20% and Coors at about 11% with the rest of the market occupied by imports and craft breweries. When analyzing any industry, how easy it is for newcomers to enter the market is a great importance. If there are high barriers to entry

The American company Anheuser-Bush (AB) cannot market its beer using their trademark name Budweiser in every country around the world. This is due to the fact that there is an European brewing company that uses the same trademark.

In 1999, they achieved record sales and earnings, selling over 100 million barrels of beer worldwide for the first time in history. August A. Busch III, Chairman of the Board and President, says his company owes its success to, “The combination of outstanding domestic beer industry fundamentals, the highest quality and freshest beer in the industry and exceptional marketing and sales execution.”

The first six months of Mt. Mercy’s operation of Abbott were unsuccessful. Dr. John Coletti who had initially improved Abbott’s operations was left in the dark following the acquisition. The momentum that Dr. Coletti had previously aided in developing had quickly diminished once Sister Mary Theresa placed Abbott’s staff members on a probationary period. Additionally, Sister Mary Theresa instructed Mt. Mercy’s personnel department to essentially demote Abbott’s department heads by having them report to the department heads at Mt. Mercy. Ultimately, the acquisition is seemingly one-sided as the staff members of Mt. Mercy were not subjected to the same probationary period and their department heads were not forced to suddenly revoke their seniority

The Adolph Coors Case Study proved the dedication and self-reliance Coors brings to the beer industry. Having overcome great adversity by surviving the prohibition years, Coors durability and sustainability are also complimentary points on the structure of the company. Coors is a family owned company that had humble beginnings in Colorado and within 100 years grew into a multimillion-dollar company. Coors’ controlled manufacturing process is a sign of their individuality in the beer industry, this was not an unknown fact, however, as they were receiving orders to ship Coors beer all across the nation as of 1972. The case study allowed an internal and external point of view, which was highly beneficial to properly analyze their upcoming problem within the company.

One of the Nation’s third-largest craft breweries, based out of Colorado, New Belgium Brewing Company, Inc. (the Company). The Company was founded in 1991, a privately held corporation. Its first operation started off in the basement of Jeff Lebesch (founder). The Company prides itself on its branding strategies “triple bottom line” and social responsibility which focuses on economic, social, and environmental factors. New Belgium’s marketing strategy links the Company’s viewpoint to the quality of its products. The Company continues to support the community, giving back & advocating positive change. However for continued success, New Belgium has to continually analysis its situation in the marketplace,

In the summer of 2008, InBev NV, a Belgian-based brewing company formed from the merger of InterBrew and AmBev, offered a bid of $46.6 billion to acquire Anheuser-Busch Co to create the world’s largest brewing company at $65 a share. The initial offer was subsequently declined in part because the company felt the offer undervalued the company greatly. InBev later increased their offer to $70 a share and in Mid-July, Anheuser-Busch accepted the offer making the total cost of the deal $54.8 billion dollars. The issue then becomes whether the offer of $70 is justifiable to InBev’s shareholders. The merger brings about two different management styles. The culture at InBev focused on extreme cost-cutting measures and profitable incentive-based compensation programs. However, Anheuser-Busch’s culture differed in that they prided itself on philanthropy, diversity, and community involvement. In addition, this company possessed many luxurious offices and corporate fleet of aircrafts. Furthermore, they invested heavily in advertising, derived most of their profits in the United States, and possessed a lackluster international expansion plan. Issues the financial managers face will be differing business philosophies in regards to marketing (“Grow/Defend/Maintain/Cash” matrix approach vs the large marketing budget of Anheuser-Busch), culture (cost cutting measures vs company perks), and the future of the twelve

Based in St. Louis, Missouri, Anheuser-Busch is the leading American brewer. The company is one of the largest theme park operators in the United States, a major manufacturer of aluminum cans and one of the world’s largest recyclers of aluminum cans. Our diverse background also includes malt production, rice milling, real estate development, turf farming, label printing and transportation services.

As a company[s main mission to be the greatest beer in the world, they have achieved competitive strategies to be able to protect their business-level strategies; Sprinkler Expansion strategy, Aggressive Marketing Strategy and Consumer Responsiveness Approach.

the product delivered to various markets nationwide, as well as help reduce the costs of moving

Rivalry in the craft beer industry is high and in addition to the excise tax and overall high manufacturing cost have promoted mergers and acquisitions in order to consolidate and globalize the industry. Anheuser-Busch InBev merged with Belgium-based Inbev as one of the major transactions in 2008, forming Anheuser-Busch InBev. Heineken (HEINY) another major brewer, acquired the beer business of FEMSA in 2010. As in 2013, Anheuser- Busch InBev one of the market leaders acquired Grupo Modelo, Mexican brewer. In the following year 2014, Anheuser- Busch InBev reacquire Oriental Brewery, South Korea brewer. (Sharon Bailey) The acquisitions combined their market share and currently owns 41.2 percent of the US market.(Statista)

Beer Company 1 is a “national brewer of mass-market consumer beers sold under a variety of brand names” (pg. 120). As one might expect, this national company has “an extensive network of breweries and distribution systems and owns some beer-related businesses” (pg. 120). It also owns several major theme parks.

|The global beer industry is dominated by large corporations who have merged with rivals to increase their global and domestic market share. |