FINAL PAPER AB2 - 1 Company Background Anheuser-Busch's...

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1 Company Background Anheuser-Busch’s origins go way back to 1852 when George Schneider founded the Bavarian Brewing Company in St. Louis, Missouri. Later, Adolphius Busch would marry into the family and begin working closely with his father-in- law. Then in 1879 the brewery would be renamed Anheuser-Busch Brewery Association, thus beginning the legacy of the Busch family, owning and operating the world’s best breweries of beer for the past 130 years. August A. Busch IV is the current president and CEO of the Anheuser-Busch Companies. Anheuser-Busch enjoys a 48.4% share of the domestic beer market, blowing their competitors out of the water. Last year they shipped 102.3 million barrels domestically, more than two times their closest competitor, SABMiller. They also have an 11.5% share of the world beer market, placing them as the second largest brewer in the world, behind InBev. In Anheuser-Busch’s 2007 annual report the current mission statement was described. Their main goal is to enhance long-term shareholders value. Listed were three things that must be done in order to accomplish their goal; increase domestic beer segment, increase international beer segment profit growth and continue growth in the packaging and entertainment industries. Industry Analysis (See Appendix B) The beverage industry is vast and has many segments to it. The three major segments are mineral waters, soft drinks and alcoholic beverages. Others include energy drinks, coffees, teas and juices. Within the alcoholic beverage segment there are three more segments, beer, wine and liquor. Beer dominates among the alcoholic beverage segment, with 85% of consumption being beer, 9% wine and 6% liquor. The core consumer of beer is typically 21-27 years of age, this age segment has been steadily increasing over the past years and is excpected to continue growing through 2010(Appendix A), showing no signs that wine or liquor could surpass beer.
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2 Anheuser-Busch is currently the second largest brewer in the world, shipping nearly 150 million barrels in 2007 and has an 11.5% share of the world beer market. They are second only to InBev, which brewed 172 million barrels last year, taking 13.3% of the world beer market. InBev is a Belgium brewer that formed through the merger of Interbrew and Brazilian company AmBev. They boast a large brand portfolio that includes Skol (the third best selling beer in the
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This note was uploaded on 05/25/2008 for the course BUAD 441 taught by Professor Wycoff during the Spring '08 term at University of Delaware.

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FINAL PAPER AB2 - 1 Company Background Anheuser-Busch's...

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