Budweiser Analysis
BUDWEISER ANALYSIS
Overview
Anheuser Busch has a long storied history in the tale of American breweries. Since the first one opened over 150 years ago in St Louis, AB has added eleven more nationally and fifteen internationally. From 2005-2006 AB increased its sales, gross profit, net income, stock price and dividends paid. And since 1999, its international net income has increased and average of 20% per year. International operations now account for 32% of AB 's net income. They are also a leader and innovator in vertical integration, founding subsidiaries that produce everything from raw materials to packaging to entertainment.
Industry
The beer industry is a $91.6 billion market in the United States, it accounts for 52% of total alcohol beverage sales and 85% of the consumption. The industry has seen an extended period of relatively flat consumption, with the only steady growth occurring in the niche brands produced by microbreweries and imports. This flat consumption can be explained by a few factors, the industry itself has reached maturity due to the maturity of the products within it, and over 80% of the market is comprised of AB, SABMiller and Coors which have dominated the market for years. This highly developed consolidation is also the result of intense government regulations and a relatively high tax rate. Alcohol awareness campaigns and an aging population also play a role. However, there is some hope, in the last two years, total barrels sold has increased 2.1%, the biggest jump since 1990. Anheuser Busch enjoys a 48.4% market share; Miller has 29% and Coors 10%. SABMiller and MolsonCoors are currently attempting a joint venture that will combine the Miller and Coors operations. This merger will create a stronger competitor for AB as they improve efficiency, distribution and effectively "gang-up" on AB.
Customer
The information search in the beer industry is a short one once the need has been perceived because the beer industry enjoys a high
Overview
Anheuser Busch has a long storied history in the tale of American breweries. Since the first one opened over 150 years ago in St Louis, AB has added eleven more nationally and fifteen internationally. From 2005-2006 AB increased its sales, gross profit, net income, stock price and dividends paid. And since 1999, its international net income has increased and average of 20% per year. International operations now account for 32% of AB 's net income. They are also a leader and innovator in vertical integration, founding subsidiaries that produce everything from raw materials to packaging to entertainment.
Industry
The beer industry is a $91.6 billion market in the United States, it accounts for 52% of total alcohol beverage sales and 85% of the consumption. The industry has seen an extended period of relatively flat consumption, with the only steady growth occurring in the niche brands produced by microbreweries and imports. This flat consumption can be explained by a few factors, the industry itself has reached maturity due to the maturity of the products within it, and over 80% of the market is comprised of AB, SABMiller and Coors which have dominated the market for years. This highly developed consolidation is also the result of intense government regulations and a relatively high tax rate. Alcohol awareness campaigns and an aging population also play a role. However, there is some hope, in the last two years, total barrels sold has increased 2.1%, the biggest jump since 1990. Anheuser Busch enjoys a 48.4% market share; Miller has 29% and Coors 10%. SABMiller and MolsonCoors are currently attempting a joint venture that will combine the Miller and Coors operations. This merger will create a stronger competitor for AB as they improve efficiency, distribution and effectively "gang-up" on AB.
Customer
The information search in the beer industry is a short one once the need has been perceived because the beer industry enjoys a high
References: 1. Anheuser Busch, St Louis. www.anhueserbusch.com 2. Beer consumer demographic profile. www.progressivegrocer.com 3. Beer Institute, Washington D.C. www.beerinstitue.org/statistics 4. www.brewblog.com 5. www.budweiser.com 6. www.budlight.com 7. www.coors.com 8. www.millerbrewing.com 9. Minnesota Trade and Economic Development – overview of U.S. Beer industry. www.deed.state.mn.us