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Beer: Drunks All Over the World

Beer: Drunks All Over the World. BADM 381 – September 16, 2008 Jessica Schmitt Eva Lindsay Kyle Giglio John Miller. Top Beer Companies in the World. InBev (once buyout is completed) Bass, Stella Artois, Beck’s, Budweiser…. SABMiller Icehouse, Leinenkugel, Miller, Peroni….

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Beer: Drunks All Over the World

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  1. Beer: Drunks All Over the World BADM 381 – September 16, 2008 Jessica Schmitt Eva Lindsay Kyle Giglio John Miller

  2. Top Beer Companies in the World • InBev (once buyout is completed) • Bass, Stella Artois, Beck’s, Budweiser…. • SABMiller • Icehouse, Leinenkugel, Miller, Peroni…. • Heineken International • Heineken, Amstel, Newcastle

  3. Most Popular Beers • Stella Artois is InBev’s most profitable beer • 93% of Anheuser-Busch’s net sales are in USA

  4. Most Popular Beers • IRI Top 30 Beer Brand Performers in 2007: Total US Supermarkets • Blue Moon Belgian White Ale • Samuel Adams Seasonal • Heineken Premium Light Lager • Stella Artois Lager • Newcastle Brown Ale • Coors Light • Bud Light • Yuengling Traditional Lager • Miller Lite • Samuel Adams Boston Lager • Keystone Light • Corona Light • Tecate • Guinness Draught • Samuel Adams Variety Pack • IRI Top 15 New Beer Brands in 2007: Total US Supermarkets • Miller Chill • Bacardi Silver Mojito • Landshark Lager • Bud Light Chelada • Smirnoff Ice Pomegranate Fusion • Mike's Hard Light Cranberry Lemonade • Michelob Ultra Lime CactusCM • Parrot Bay Pineapple Colada • Budweiser Chelada • Michelob Ultra Tuscan Orange Grapefruit • Mike's Cocktail

  5. InBev Merger • EVENT • July 13, 2008 – InBev agreed to buy Anheuser-Busch for a total value of $52 million and create a new company Anheuser-Busch InBev. • The deal is still pending approval by shareholders and regulatory agencies.

  6. The Companies • InBev • Founded in 2004 in merger between Interbrew and Ambev • Operations in 30 countries and sales in 130 countries • Important Brands: Stella Artois, Bass, Brahma, Leffe, Hoegaarden, Beck’s • Anhauser-Busch • Largest brewing company in the U.S. • Important Brands: Budweiser, Busch, Michelob, Bud Light, Natural Light

  7. Implications of Acquisition • The Anhauser-Busch and InBev merger would create the a combined world sales that would surpass current number one brewer SABMiller • Other mergers may be forced in order to compete • Top 5 International Brewers could increase control of world market from two-thirds to nearly 85%

  8. Beer Drinkers Fight Back! • A group of 10 beer drinkers filed a federal lawsuit against the InBev’s purchase of Anhauser-Busch claiming that it woud violate U.S. antitrust law if complete as planned • Concern over monopoly creates would create a reduction in competition • Both Anhauser-Busch and InBev claim the lawsuit has no merit

  9. Class Survey • When you throw a party, what kind of beer do you buy? • If money or distance wasn’t an issue, what beer would you buy?

  10. Beer & National Pride -Beer used to foster national pride -Small or poorer countries are proud to have their own beer -Creates jobs -Beer companies involved in sports, art, music, leisure, and the community

  11. The Caribbean • Every country has its own beer • Each country’s beer has become a national icon • Controls up to 99% of the local beer-drinking markets • Some partly or fully foreign owned, but locally managed and people still prefer the local brand

  12. Dominican Republic:El Presidente “Whether it is the taste of the beer, or the simple fact that the beer represents a national icon for the demonstration of national pride, Presidente beer is undoubtedly an important part of the Dominican cultural make-up.” -DR1

  13. Dominican Republic: El Presidente Sponsors cultural events: The Music Competition at the National Theater, Carnaval celebrations, The Cassandra Awards (Arts, Entertainment, and Journalim award), The Latin Music Festival, The Winter Baseball League, and the Athlete of the Year Award

  14. El Presidente “Elaborada en la Republica Dominicana”

  15. Most important sponsorship: Sports Events • People connect with sports • brings national pride • beer sponsors events • Budweiser and the Superbowl Budweiser Superbowl Ad

  16. “Ecuatorianamente Refrescante” “Refreshingly Ecuadorian” • Pilsener Cup for soccer • Brags to be “Orgullosamente Ecuatoriano” “Proudly Ecuadorian”-

  17. Marketing Differences • American beer companies • Rarely coordinate advertising efforts • In USA, sponsor NASCAR • In England, sponsor English Premier League • Product Placement in country-specific films • Budweiser - Mexico

  18. Marketing Differences • Foreign Beer Companies • Guinness advertising highly coordinated • Similar ads used across borders • Americans want foreign feel • More highly valued

  19. Marketing Differences • Recipe Changes • Guinness Alcohol By Volume (ABV) • U.S, Australia, Japan 6% • Canada 5% • Ireland, UK, Europe 4.3% • Corona w/ Lime • Lime used as disinfectant and method of keeping flies out • In America (more health standards) make lime a necessary accessory

  20. Beer Industry $$$ in Ads • Superbowl known for it’s pricey advertisements • 30 second spot cost: • $2.7 million in 2008 • Expects $3 million in 2009 • (Reuters) • 11% of Advertisements were from the beer industry alone • (AOL Sports) • http://www.youtube.com/watch?v=HAwi2J1J5GE

  21. Beer Industry $$$ in Ads • “Anheuser Busch spent $782,700,000 on advertising (advertising and promotional costs) • (Anheuser-Busch 10k) • Molson Coors spent $754,738,000 on advertising (media, tactical, promotional) in 2007 • (Molson-Coors 10K)

  22. Importing in the US • Main ideas are to come away with are: • Importing appears to be on the decline ( - 3.1%) through June • Overall imports in 2007 were 29,691,000 barrels (Beer Institute)

  23. Exporting from the US • Main ideas are to come away with are: • Exporting appears to be on the rise (+21.2) through June • Overall exporting in 2007 were 2,392,200,000 barrels WE ACTUALLY EXPORT 80X MORE THAN WE IMPORT BEER (Beer Institute)

  24. Beer Market Shares • Increased exports should lead to an increase in global market share • Asia’s growth from 26% to 30% in 5 years has helped them catch up to a seemingly unmatchable Europe • Possibly to Europe’s higher consumption level? (Beverage Marketing)

  25. References • http://articles.latimes.com/1998/jun/28/business/fi-64375 • http://dr1.com/articles/presidente_1.shtml • www.wikipedia.org • www.foxnews.com • www.bloomberg.com

  26. References Cont’d. • http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSN0644484220080506?rpc=64 • http://www.youtube.com/watch?v=HAwi2J1J5GE • http://www.beveragemarketing.com/globalbeerbw.htm • http://content.mahalo.com/images/5/52/Bud_Light_Breathe_Fire_Super_Bowl_Ad.png • http://sports.aol.com/nfl/superbowlads • http://www.beerinstitute.org/statistics.asp?bid=198 • http://phx.corporate-ir.net/phoenix.zhtml?c=101929&p=irol-financialreporting • http://www.anheuser-busch.com/FinancialReports.html • http:/www.thebeermall.com/images/home_page_pic.jpg • http://www.just-drinks.com/store/product.aspx?id=61761

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