InBev: One of the World's Largest Beverage Producer
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InBev, one of the world's largest beverage producer, marketer and distributor made a very significant expansion internationally in 2008/9. What did they do? How did they increase their "global footprint"? Was it successful up to this point? What has happened since then in terms of the footprint? How's the "marriage' these days?
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The solution discusses InBev, one of the world's largest beverage producer.
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In the mid 2008, the Brazilian-Belgian brewing company InBev made an offer of $46 Billion to Anheuser-Busch International for its purchase, the nation's biggest brewery which looked too good to refuse. In this case, if it was to accept the offer, it was to join four of the largest brewing companies and create a company that was brewing three of the highest grossing beers in the entire world. As they were making the deal, they made it clear that there was not going to be any changes in term of closing any U.S brewery but were to try and retain management and the board members from both ends. Anheuser-Busch Company could not accept the deal easily and thus went against the bid by InBev. After a series of negotiations, a conclusion was reached where the two companies agreed to a deal in which InBev was to purchase the American company which would prompt a creation of a new company known as Anheuser-Busch InBev. In this case, the two companies merged which prompted the creation of the largest brewer in the world (InBev, 2008).
The companies increased their global footprint by focusing on cost cutting and profit margins. The company stressed on costs as incentive-based pay structures that it had inherited from InBev in a prior acquisition. It made an incredible step in the industry where it started by ...
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