Ab-Inbev is a company dedicated to the production and distribution of beer in the whole world. In 2004, Interbrew (the origins of the company go back to 1366 with the brewery “Den Horn” but it is only in 1987, during the merger of the Belgian breweries Artois and Piedboeuf that the company takes the name of Interbrew), thethird world brewer before the merger, and AmBev, fifth world brewer, join to create InBev, the largest brewer of the world in terms of volume. In 2008, Inbev acquires Anheuser-Busch (Anheuser-Busch was founded in America in 1852) for 52 billion dollars, thus forming the AB-Inbev company. AB-Inbev is today the world leader of the brewery Industry, and is a member of the five companies with thehighest Sales throughout the world. The head office is located at Leuwen, in Belgium. AB-Inbev roughly employs 120.000 people through 30 countries. AB-Inbev representing an annual Turnover of 36.4 billion dollars and sales of 460 million hectoliters. The long-term goals of the company are the following: -To develop an organic growth for volumes faster than the average of the sector, -A Turnovergrowth having priority on volumes, -To make sure that the increases in costs remain lower than inflation. AB-InBev has a portfolio of almost 300 beers which includes: Stella Artois, Budweiser, Becks.
Now, we are going to try answering the next problem, to analyze the development of AbInbev: What strategy it must be adopted by AbInbev to continue being the world leader on the market of the beer? Asector affected by the economic recession. To answers that we are going to do an external diagnosis to know the opportunities and threats, an diagnosis of acquisition of Anheuser-Busch by InBev, and an analysis of his mode of development chosen and compare it with the other possibilities of expansion for InBev, after we are going to propose some recommendations for future development and hisorganizations.
Politic/ Legal: Increase of taxes on beer in some countries, public campaigns against the alcohol abuse, prohibition of publicities for alcohol drinks, prohibition to smoke in the public places affects in a negative way in the alcohol consumption.
Economic field: The economic recession has affected the sector, because there are less final consumers, also moreand more people buy cheaper brands. The increase of the prices of the raw materials and energy affects their production costs.
Social: The attraction of the consumers towards local tastes, anchored in a culinary and brewery tradition, consumptions raised according to the country, irregular consumptions according to the station.
PORTER’S 5 FORCES
Suppliers: Very weak. There are many suppliersin the world, but however the raw materials are increasing his prices.
Customers: Average. It´s depends for example the big supermarket and hypermarket have a little more power of negotiation the tariffs than small stores and finals customers.
Substitutes: Very high. There are many substitute products (wine, soda, juices, rhum, vodka...)
Competitors: High. There are a lot of competitors inthis market. There are new markets growthing like China, Africa.
Entrants: Very weak. There are many producers with economic scales and many experience and also there are a lot of entrance barriers.
Regulation: The regulation of the state is a very high force, (increase of taxes on beer, prohibition of publicities for alcohol drinks...)
The principal KSF in this industry are: DistributionMarketing Loyalty of the clients Brand image Volume low cost.
OPPORTUNITIES AND THREATS
Opportunities: new markets in Asia, Africa. To promote the consumption of a beer of major quality with a highest price for adult people. Innovation in new flavours.
Threats: raw materials’ prices, decrease of the consumption of alcohol for different laws, prices of the transports, the beer is a seasonal...