Anheuser-Busch InBev

Anheuser-Busch InBev N.V.
Public
Traded as Euronext: ABI
NYSE: BUD
Industry Beverages, brewing
Founded 2008
Headquarters Leuven, Belgium
Key people
 Carlos Brito (CEO),
Kees J. Storm (Chairman)
Products Beers, soft drinks
Revenue US$ 43.195 billion (2013)[1]
US$20.443 billion (EBIT 2013)[2]
Profit US$14.394 billion (2013)[2]
Total assets US$141.666 billion (2013)[2]
Total equity US$50.365 billion (2013)[2]
Number of employees
 >150,000 (2013)[3]
Subsidiaries Anheuser-Busch
AmBev
InBev
Grupo Modelo
Website www.ab-inbev.com

Anheuser-Busch InBev (Dutch pronunciation: [ˈɑnɦɔi̯zər ˈbuʃ ˈɪmbɛf], abbreviated as AB InBev) is a multinational beverage and brewing company headquartered in Leuven, Belgium. It is the world's largest brewer and has a 25 percent global market share.

AB InBev has 17 brands that individually generate over 1 billion USD per year in revenue out of a portfolio of more than 200 brands (2013).[3] This portfolio includes global brands Budweiser, Corona and Stella Artois, international brands Beck's, Hoegaarden and Leffe and local brands such as Bud Light, Skol, Brahma, Antarctica, Quilmes, Victoria, Modelo Especial, Michelob Ultra, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske and Jupiler. Total revenue for all 200 AB InBev brands in 2013 was over 43 billion USD.[3]

The company employs over 150,000 people in 24 countries. After the integration of Anheuser-Busch, the company started reporting its financial results in US Dollars.

AB InBev has a primary listing on the Euronext Brussels stock exchange and is a constituent of the BEL20 index. It has a secondary listing on the New York Stock Exchange. Dividends per share increased steadily from 0.35 USD in 2008 to 2.83 USD, proposed for 2013. However, the pay out ratio increased from 26.3% to 57.6% during the same period.[1]

AB InBev's market share, measured as volume of beverages sold, on a country-by-country basis, was published by the company for 2013.[4] Although its market share in the USA is 47.2%, the volume sold in Brazil is higher. However, for all North America, the combined volume would be the highest of any region. 140 plants are in its 10 top markets.

History

AB InBev was formed following the acquisition of American brewer Anheuser-Busch by Belgian-Brazilian brewer InBev, which itself is a merger of AmBev and Interbrew.

In 2004, Interbrew and AmBev merged, creating the world's largest brewer, InBev.[5] The deal was valued at $11.5 billion and combined the 3rd largest (Interbrew) and 5th largest (Ambev) brewers into the world's No.1 beermaker. Interbrew is the Belgian beer conglomerate behind the Stella Artois and Beck's brands of beer.[6]

In 2006, InBev acquired the Fujian Sedrin brewery in China, making InBev the No. 3 brewer in China (the world's largest beer market). In 2007, Labatt acquired Lakeport in Canada, and InBev increased its shareholding in Quinsa, strengthening the company’s foothold in Argentina, Bolivia, Chile, Paraguay and Uruguay.

On 18 November 2008, the merger of InBev and Anheuser-Busch was completed, creating Anheuser–Busch InBev, the world's largest brewer and one of the top five consumer products companies in the world. Under the terms of the merger agreement, all shares of Anheuser-Busch were acquired for 70 USD per share in cash, for an aggregate of 52 billion USD.[7]

Interbrew

Main article: Interbrew

After the merger in 1987, Interbrew acquired a number of local breweries in Belgium. By 1991, a second phase of targeted external growth began outside of Belgium’s borders. The first transaction in this phase took place in Hungary, followed in 1995 by the acquisition of Labatt, in Canada, and then in 1999 by a joint venture with Sun in Russia.

In 2000, Interbrew acquired Bass and Whitbread in the U.K., and in 2001 the company established itself in Germany, with the acquisition of Diebels. This was followed by the acquisition of Beck’s & Co., the Gilde Group and Spaten. Interbrew operated as a family-owned business until December 2000. At this point it organized an Initial Public Offering, becoming a publicly owned company trading on the Euronext stock exchange (Brussels, Belgium).

In 2002, Interbrew strengthened its position in China, by acquiring stakes in the K.K. Brewery and the Zhujiang Brewery.

AmBev

AmBev is a Brazilian beverages company formed by a merger in 1999 between the Brahma and Antarctica breweries. It has a dominant position in South America and the Caribbean region.[8][9][10] The subsidiary is listed on BM&F Bovespa, the São Paulo stock exchange, and on the New York Stock Exchange.

Anheuser-Busch

Main article: Anheuser-Busch

Anheuser-Busch is the largest brewing company in the United States. It was the world's largest brewing company based on revenue, but third in brewing volume, before the acquisition by InBev announced 13 July 2008. The division operated 12 breweries in the United States and 17 others overseas.

Anheuser-Busch's best known beers included brands such as Budweiser, the Busch (originally known as Busch Bavarian Beer) and Michelob families, and Natural Light and Ice. The company also produced a number of smaller-volume and specialty beers, nonalcoholic brews, malt liquors (King Cobra and the Hurricane family), and flavored malt beverages (e.g., the Bacardi Silver family and Tequiza).

Anheuser-Busch was also one of the largest theme park operators in the United States with ten parks throughout the United States. In October 2009, AB InBev announced the sale of its Busch Entertainment theme park division to The Blackstone Group for $2.7 billion. The company had been investigating a sale of Busch Entertainment since the merger with Inbev.[11][12]

InBev

Main article: InBev

InBev was the second largest brewery company in the world.[13] While its core business is beer, the company also had a strong presence in the soft drink market in Latin America. It employed about 86,000 people and was headquartered in Leuven, Belgium, where Anheuser–Busch InBev will now be based.

Before the merger with AmBev, Interbrew was the third largest brewing company in the world by volume, Anheuser-Busch was the largest, followed by SABMiller in second place. Heineken International was in fourth place and AmBev was the world's fifth largest brewer.

InBev employed close to 89,000 people, running operations in over 30 countries across the Americas, Europe and Asia Pacific. In 2007, InBev realized 14.4 billion euro of revenue.

Grupo Modelo

The company owns Grupo Modelo, Mexico's leading brewer and owner of the Corona brand as of 4 June 2013. This transaction was valued at 20.1 billion USD. To satisfy US anti-trust demands, Grupo Modelo sold its US business, including US brand rights and the Piedras Negras Brewery in Mexico, for approx. 4.75 billion USD to Constellation Brands, a competitor of AB Inbev in some beverage sectors.[2]

Additionally, the group has a 51% controlling stock on Cerveceria Nacional Dominicana through the AmBev division.

Oriental Brewery

On April 1, 2014, AB Inbev completed the re-acquisition of the Oriental Brewery (OB), which it had sold in July 2009. OB is the largest brewer in South Korea. Its CASS brand is the best-selling beer in South Korea. All beers produced by OB are brewed using rice.[14]

Bud Analytics Lab

In 2013, AB Inbev opened its Bud Analytics Lab in Research Park, University of Illinois at Urbana-Champaign, which develops data research and innovation to solve problems ranging from assortment optimization, social media, and market trends to large scale data initiatives.

Brands

Main article: AB InBev brands

AB InBev's brand portfolio includes highly popular beer and soft drinks brands. The company classifies its brands as Global Brands, International Brands, and Local Champions.

Global brands include:

International brands include:

Local Champion brands include:

The company also owns distribution rights to the Bacardi and Monster Energy brands.[7]

See also

Portal iconCompanies portal
Portal iconBeer portal
Portal iconDrink portal

References

  1. ↑ 1.0 1.1 "key figures". Anheuser-Busch InBev. Retrieved 18 March 2014.
  2. ↑ 2.0 2.1 2.2 2.3 2.4 "Financial Report 2013". Anheuser-Busch InBev.
  3. ↑ 3.0 3.1 3.2 "Company Information". Anheuser-Busch InBev. Retrieved 18 March 2014.
  4. ↑ Market shares by country 2013
  5. ↑ "Interbrew buys AmBev and becomes world's number one". Beverage Daily. 3 March 2004. Archived from the original on 13 February 2008. Retrieved 9 February 2008.
  6. ↑ http://fortune.com/2013/08/15/carlos-brito-brewmaster-of-the-universe/
  7. ↑ 7.0 7.1 http://www.ab-inbev.com
  8. ↑ "Companhia de Bebidas das Américas". AmBev. Archived from the original on 9 August 2010. Retrieved 2010-07-07.
  9. ↑ "Stock symbol abv". Gstock Supercomputer. Retrieved 2010-07-07.
  10. ↑ "Alcoholic beer taster gets payout". BBC News. 6 May 2007. Retrieved 25 April 2010.
  11. ↑ Blackstone to buy A-B InBev's theme parks for $2.7 billion. MarketWatch, 7 Oct. 2009
  12. ↑ InBev may sell US theme parks. Boston Globe, 16 July 2008
  13. ↑ Bid talk boosts Budweiser maker. BBC News. 23 May 2008.
  14. ↑ Press release: Acquisition of Oriental Brewery, 1 April 2014
  15. ↑ http://newsroom.anheuser-busch.com/anheuser-busch-and-10-barrel-brewing-announce-purchase-agreement/

External links

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