Abinbev Strategic Initiatives

8/16/2019 Abinbev Strategic Initiatives

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d) Developing the near beer segment is "ust one way in which we

are responding to consuer deand for ore choice and e*citeent# In particular,

we are copeting ore e2ectively for share of total alcohol by launching innovative

products that o2er alt beverage alternatives to wine and hard li3uor# 'e view this

near beer category as a a"or global opportunity#

AB InBev Aims for $100 Billion In Revenue By 2020

the Belgian company in December issued a special stock option grant to be aarded to

!" senior managers if they succeed in boosting the combined companies# revenue more

than "0 by 2020% AB InBev#s revenue for the 201" fiscal year as $&'%! billion( hile

)AB*iller#s as $22%1 billion( bringing their combined total to $!"%+ billion( e,cluding

divestitures%

-hat is clear( people ho have studied the company say( is to hit its goal the company

ill have to either make another big ac.uisition or rev up groth considerably%

In /ovember( *r% Brito said he planned to e,pand Bud( orona and )tella Artois across

ne markets in atin America and Africa( hich account for ! of )AB*iller#s

revenue% Africa is e,pected to drive beer industry groth ith compound annual groth

of '%+ through 2020( according industry tracker 3lato ogic%

Expansion to new geographies and more M&A is integral to AbInbev’s strategic vision

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Beer and the brewing industry are topical because of the possible acquisition by AM InBev of SAB Miller –

the world’s two largest breweries by volume. Besides consolidations which eperts believe will continue in

coming years! craft"microbreweries are causing a stir as they ra#e up increasing mar#et share globally.

$o add to this industry’s competitive challenges! the mar#et itself is changing% fewer people in developed

countries are consuming beer! and developing mar#ets are now the growth areas breweries are fighting

for. Brewers also face process industry challenges! such as changing regulations and evolving

technologies.

$rends in consumption can be heavily influenced by a nation’s political and legal system! religious beliefs!

health concerns! price of raw materials and economic situation

Business

Priority

Goals Associated Challenges

"eographical

#iversi$cation

and M%&

• 'xpand into new

developing

markets

• (olume growth

• )ncreased prospect of industry

consolidation

• #emographic changes

• craft*microbreweries are raking

up increasing market share


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globally Brand Building

and improving

consumer

relationships

• onnect with

younger

generation

• Build brand

loyalty amongnew consumer

segments

• Mature markets are inclined

towards premium segment

• apturing a greater share of

consumption moments

+roduct and

+ackaging

)nnovation

develop near

beer segment

and craft beer

segment

• .ap into new

customer

segments

• /ustainable and

green packaging

• )ncreased need for value

packaging

• )ncreased need of new products

and variants among di0erent

consumer segments

)nnovation in

distribution

• 1each out and

connect toconsumers

directly

• operate with

greater 2exibility

and an enhanced

focus on

minimizing costs

• #eveloping the agility necessary

to deliver on scale innovation• "iving wide availability and high

visibility to the company3s new

beers

• &s the retail channel becomes

dominant, it is increasingly

important to work with retailers

to develop 4shelves of the

future,5 compelling beer and

food combinations, and

e0ective point of purchase

displays• &vailability is more than 6ust

being everywhere 7 standing out

is a key driver of sales"rown in a

/ustainable

manner

• 1educe

greenhouse gas

emissions

• )mprove water

management

• 1educe energy

usage

Business priority IT olutions"eographical

diversi$cation and M%&• 8.emplatizing3 the approach towards ).

)ntegration for the organization3s inorganic

initiatives

• /tandardizing and implementing pre-con$gured

business processes


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• 1ationalization and 1eduction of .9 of

application portfolio after ma6or M%&Brand building and

improving consumer

relationships

• )mplementing a digital based marketing

solution for customer insights and to measure

customer satisfaction

• &nalytics solution for data generated in theblogosphere, social media and other sources to

uncover the real time conversations which can

impact capturing a greater share of

consumption moments+roduct and packaging

)nnovation• )mplementing product innovation solutions in

product lifecycle management

• )mplementing package enhancement solutions

)nnovation in distribution • : '-commerce /trategies

o .ie up with existing e-tailers

o ourier model

o 9wn e-commerce platform• )mplementing an optimized /upply hain

Management solution, which addresses route

optimization and warehouse management /ustainable growth • loud computing can help reduce carbon

footprint

• +ower of data and analytics

• .hrough data and analytics )9. maybe; our

customers gain vital insights from millions of

devices, social media channels, and business

systems! .his data empowers them to achieve

greater e

Abinbev Strategic Initiatives

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