Transcript Beer: Drunks All Over the World Jessica Schmitt Eva Lindsay

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….
 Heineken International
 Heineken, Amstel, Newcastle
Most Popular Beers
 Stella Artois is InBev’s most profitable beer
 93% of Anheuser-Busch’s net sales are in USA
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
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.
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
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%
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
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?
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
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
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
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
El Presidente
“Elaborada en la Republica Dominicana”
Most important sponsorship: Sports
Events
 People connect with sports
 brings national pride
 beer sponsors events
 Budweiser and the Superbowl
Budweiser Superbowl Ad
“Ecuatorianament
e Refrescante”
“Refreshingly Ecuadorian”
•Pilsener Cup for soccer
•Brags to be “Orgullosamente
Ecuatoriano” “Proudly
Ecuadorian”-
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
Marketing Differences
 Foreign Beer Companies
 Guinness advertising highly coordinated
 Similar ads used across borders
 Americans want foreign feel
 More highly valued
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
Beer Industry $$$ in Ads
 Superbowl known for it’s pricey
advertisements
 30 second spot cost:
 $2.7 million in 2008
 Expects $3 million in 2009

(Reuters)
 11% of Advertisements were
from the beer industry alone

(AOL Sports)
 http://www.youtube.com/wat
ch?v=HAwi2J1J5GE
Beer Industry $$$ 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)
Importing in the US
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2008
1.841
2.082
2.434
2.708
2.8
2.756
11-Sep
10/10
13-Nov
11-Dec
13-Jan
11-Feb
2007
2.355
2.137
2.334
2.462
2.963
2.831
2.869
2.706
2.13
2.316
2.304
2.284
29.691
2006
1.865
1.953
2.463
2.563
2.711
2.524
2.592
2.634
2.398
2.708
2.459
2.449
29.319
% Change 07-08
-21.80%
-2.6
4.3%
10.0%
-5.5%
-2.7%
% Change 0607
26.30%
9.4%
-5.2%
-2.9%
-9.30%
10.70
%
2.7%
11.1%
14.5%
-6.3%
-6.7
12.1%
• 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)
TOTAL
Exporting from the US
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2008
197.6
219.9
191.5
213.7
269.5
268.8
9/11
10/10
11/13
12/11
1/13
2/11
2007
182.6
172.8
208.2
239.4
238.7
222.1
265.3
212.4
210.8
252.7
205.1
234.8
2,392.20
2006
216.4
166.6
226.1
177.4
218.9
241.5
209.9
190.4
154.9
180.1
179.1
189.5
1,981.20
% Change 0708
8.20%
27.3%
-8.0%
10.7%
12.9%
21.2%
%
Change 06-07
15.6%
3.5%
-7.9%
35.0%
9.1%
-8.2%
26.4%
11.6%
36.1%
40.3%
14.5%
23.9%
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)
TOTAL
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)
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
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