Brewing up a partnership

• Began as a small brewery in Missouri in 1860

• Introduced America’s first national beer brand in 1876

• Budweiser became the largest brewer in the US in 1957. It has 48.9% share of beer sales in the US and produces about 11 million bottles a year.

• Now it's the leading global brewer and one of the top five consumer products companies in the world.

Anheuser-Busch Inbev

• Founded in 2004 as InBev. In 2008 changed name to Anheuser-Busch InBev

• Headquarters: Leuven, Belgium and Sao Paulo, Brazil

• Key people: Carlos Brito (CEO) and Peter Harf (Chairman)

Anheuser-Busch Inbev

• Revenue US$ 39.046 billion (2011)

• Profit US$ 5.855 billion (2011)

• Employees: 116,278 (2012)

Anheuser-Busch Inbev

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• The world’s leading brewer

• One of the world’s top five consumer products companies

• Well-balanced geographic footprint

• No. 1 or 2 position in 19 key markets

• More than 200 key brands, operating in 23 countries

• 116,000 employees

• Production volume 2009: 408.6 Mio hl

• 6 geographical zones among which Western Europe

• Budweiser• Brahma• Alexander

Keith's• Bass• Natural Ice• Busch• Guaraná

Antarctica

• Jupiler

• Beck's

• Leffe

• Hoegaarden

• Staroprame

n

• Michelob

• Löwenbräu

Most Popular Brands

Supply in Western Europe

• 15 Breweries in 5

• countries

• 4200 Employees

• Morethan 30 Mio hl beerGlobal Brands Budweiser, Stella and Beck’s

• Multi Country BrandsHoegaarden and Leffe

• 165 Beers

• 950 SKU’s

AB InbevWorldwide

• North America• Latin America

North• Latin America

South• Western Europe• Eastern Europe• Asia Pacific

The Most Successful Countries

Global Beer Consumption

How does Anheuser-Busch display the characteristics of an entrepreneurial venture? Would you consider this a successful venture – why or why not?

1

Characteristic of entrepreneur

• Anheuser-Busch had its roots in the beer business as early 1852 as Bavarian Brewery in St.Louis, Missouri.

• Classic EntrepreneursWho willing to pursue opportunities in situations others fails to recognize or even view as theat.

• First-mover advantagefrom being first to exploit a niche or enter a market.

• In 1960, Eberhard Anheuser purchased manufacturing which expertise was in manufacturing of soap to brewing beer.

Characteristic of entrepreneur

• On January 16, 1920 , National Prohibition became law, which banned the manufacture and sale of alcohol. More than half of US breweries closed their doors. Anheuser-Busch diversifying their product by created more alcohol-free product. The company started its recovery in economic depression.

Characteristic of entrepreneur

• During WWII, Anheuser-Busch had voluntarily diverted its resource toward the war effort. At this time sales increase and the company became more diversified as fa.milyentertainment, industrial products, real estate and can manufacturing

Characteristic of entrepreneur

• In November 2008, Anheuser-Buschjoined forces with InBev in a move that would create the world’s largest brewing company.

• But bringing these two companies together and keeping them together would be extremely prospect.

• Time will tell how this merger of two giant companies in brewing business will develop.

Characteristic of entrepreneur

• Anheuser-Busch InBev 2009 annual report summarized that…we have commitment to building business for a long term by investing in initiatives that support responsible drinking, environmental responsibility and communities in which we operate.

• Social Entrepreneurshipa form of ethical entrepreneurship that seek novel ways to solve pressing social problem to create Social enterprises to make lives better for undeserved populations

Characteristic of entrepreneur

2

How do you feel Anheuser-Busch transitioned from a family business into a large global business in this particular industry?

Discussion Question 2•Family business is owned and financially controlled by family members.

•The family firm is an ideal situations.

•They sometimes suffer from a succession problem.

• Global business refers to international trade

• Conducts for profit transactions of goods and services across national boundaries.

Anheuser-Busch + InBev

Advantage• To create new opportunity

for business and • To generate new market.• To increase growth and

profitability.• To increase cost synergies.

Disadvantage• Not independent• Need to be aware that gains

may not be seen in the short-term.

3

Which stage in the life cycle of an entrepreneurial firm do you feel best represents the combined company of Anheuser-Busch Inbev?

• The top 10 beers in the world• To hold the 1st and 2nd

position in 19 key markets around the globe

• To produce over 200 brands• To operate from six

operational zones around the world

Discussion Question 3

Popular Brands

Discussion Question 3• North America• Latin America

North• Latin America

South• Western Europe• Eastern Europe• Asia Pacific

Global Beer Consumption

The life cycle of entrepreneurial firm• Anheuser-Busch InBev now

is maturity state in life cycle of entrepreneurial firm.

• Maturity state is the most profitable state, strong brand awareness.

+

Review Anheuser-Busch Inbev’s operation internationally. In which parts of the world do you feel it has been most successful? Where would you suggest it expands to next and why?

The Most Successful Countries

• We will suggest them to think about rest of the Europe (South and North of Europe).

• The rest of Pacific-Asia (Thailand, Philippines, Cambodia, Singapore etc.).

• Arabian and African countries, those have good touristic zones.

Discussion Question 3

Facts• A record 1 billion tourists crossed

international borders in 2012, and Chinese travelers are becoming a bigger and bigger part of it.

• Outbound touristsrose from 16.6 million in 2002 to 70.3 million in 2011, and are expected to rise to 82 million this year, up 17 percent.

Asia• Philippines: China is the fourth

largest tourism market for the Philippines with more than 150,000 visitors arriving in the first six months of 2012.

• Thailand: Thailand received an extra boost of Chinese tourists in 2012 due to a territorial dispute between Japan and China that halted almost all tourism between the two countries.

Facts• Malaysia: Malaysia increased

flights from Guangzhou and Shanghai to the popular destination of Kota Kinabalu, which faces the South China Sea, to cater to the influx of Chinese tourists. Malaysian tourism minister

• Cambodia: China is the third largest source of tourism for Cambodia with 234,440 visitors in the first nine months of 2012, up 32 percentcompared with the same period last year.

• United Arab Emirates: United Arab Emirates has seen incoming Chinese visitors increase by 50 percent between 2010 and 2011.

• South Africa: A record number of Chinese tourists (60,000) visited South Africa in the first half of 2012, a 68 percent growth over the first six months of 2011.

• So, as we know that not only Chinese people, but also American and Russian people also like to travel around the world, and they will drink beer in visiting country also, even maybe more!

Facts

THANK YOU FOR YOUR ATTENTION