Beer: Drunks All Over the World BADM 381 – September 16, 2008 Jessica Schmitt Eva Lindsay Kyle...
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Transcript of Beer: Drunks All Over the World BADM 381 – September 16, 2008 Jessica Schmitt Eva Lindsay Kyle...
Beer: Drunks All Over the WorldBADM 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
Most important sponsorship: Sports Events
People connect with sports
brings national pride
beer sponsors events
Budweiser and the Superbowl
Budweiser Superbowl Ad
“Ecuatorianamente 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 $$$ in Ads
Superbowl known for it’s pricey advertisements
30 second spot cost: $2.7 million in 2008 Expects $3 million in 2009
(Reuters)
11% of Advertisements were from the beer industry alone
(AOL Sports)
http://www.youtube.com/watch?v=HAwi2J1J5GE
Beer Industry $$$ 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
• 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
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TOTAL
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 06-07 26.30% 9.4% -5.2% -2.9% -9.30% 12.1% 10.70% 2.7%
-11.1%
-14.5% -6.3% -6.7
(Beer Institute)
Exporting from the USJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TOTAL
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 07-08 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)
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