Twenty companies produce or market more than half of the world’s beer and the top 10 account for more than a third of global sales.
The 7 steps of the Budweiser brewing process are:1. Milling: Barley malt and rice are ground and precisely weighed.2. Mashing: Barley malt and rice are mixed with water; natural malt enzymes break down the starch from the grains into fermentable sugars.3. Straining: The combined grain mash is strained, leaving a sugar-rich amber liquid called wort.4. Brewkettle: Hops are added to the boiling wort in the brewkettles. Hops are the spice of beer, adding special flavor, aroma and character.5. Primary Fermentation: The wort is cooled and clarified, and the yeast is added; for six days, the yeast ferments the wort to beer.6. Beechwood Aging: During lagering, the beer is krausened, naturally carbonated and aged on beechwood chips for 21 days to mature the flavor of the beer. Anheuser-Busch is the only major brewer in the world using beechwood aging.7. Finishing: To keep the lagered beer flavor and clarity intact after packaging, brewers must remove yeast and some unstable protein materials through a process called finishing. The beer is “chillproofed” and filtered for clarification before being released for packaging into bottles, cans or draught keys.The result: a beer with perfectly balanced flavor and a crisp, clean refreshing taste. The cycle that beer goes through in being made, uses a lot of different people in the production process. This can slightly boost a town’s economy if there are numerous breweries in their area.
InBev has merged with Anheuser in 2008, making them the biggest threat in the beer industry - with operations in over 30 countries and sales in over 130 countries Anheuser’s merge with InBev has put them in a strategic position that allows them to compete with many microbreweries around the world due to their international roots. InBev has merged with Anheuser, making them the biggest threat in the beer industry - with operations in over 30 countries and sales in over 130 countries Holds a 48.3% share of U.S. beer sales to retailers Beer sales rise as much as 20% above a typical week in January or February due to super bowl ads Budweiser, Bud Light, Bud Lime, Michelob, Shock Top, Becks, Landshark Lager, Stella, Hoegaarden, Leffe Blonde, Rolling Rock, Magaritaville Brewing, Bacardi, Natty, Hurricane, Busch, Tilt, O’Doul’s Own 50% of Grupo Modelo, who own Corona – high brand value to add onto their revenue It is interesting because Anheuser Busch (InBev –a global company which divides operations into five zones - North America, Latin America, Western Europe, Central & Eastern Europe, and Asia Pacific) is the leading manufacturer in the beer industry.
Brewers were once banded together against prohibition, but it is now become a highly competitive market, that can be watched to forecast how companies in other industries can set themselves about from competitors. TV ads cannot show anyone actually consuming the alcohol, it is also important for companies to emphasize that their companies “Drink responsibly” Beer consumption relates to the packaging sizes more than demographics ALSO The excessive amount of money spent on beer advertising results in greater accessibility of beer in the minds of alcohol consumers, relative to spirits. The industry must be cautious in the placement of their advertisements, because when young people are exposed to it, it increases their frequency of drinking. Due to the issues with under age drinking, there is talk to ban billboard advertising, ban promotion at sporting events, or ban liquor and beer advertising on television – which would create a large issue for Anhueser Beer sales have even been steady in even developing nations, however, some worry about the mortality rates being partially attributed to alcohol, as the World Bank estimate that alcohol is responsible for 1.25 million deaths per year. Progressively speaking, advertising for alcohol has gone from word of mouth by producers and their communities to a culturally based “lifestyle” oriented product by global advertising agencies or their affiliates.
Anheuser Busch has found a way to lead the industry in sales through marketing and product quality Anheuser is able to differentiate their products with the use of their unique and memorable advertising tactics. For 23 consecutive years, Anheuser has been able to be the exclusive advertiser during the Super Bowl, a broadcasting event that much of the industry’s target market tunes in on every year.
Legally, they can only market to Gen Y’ers born before today in 1990. This again, ties back to depicting ‘youthfulness’ to allow the viewer or target market to picture themselves in the shoes of those in the commercial by identifying with the actors based on similar age.
Raw materials are sourced locally – with the exception of hops. Hops comes mainly from Germany, the U.S. and Australia. Beer is in constant trade among national and international economies In recent years, international trade of beer has grown substantially in volumes and value Imports are only in the high-end spectrum of the market, for special premium beers. *emphasize how Anheuser is able to set themselves apart from other breweries around the world – what they do to compete
• Beer sales have even been steady in even developing nations, however, some worry about the mortality rates being partially attributed to alcohol, as the World Bank estimate that alcohol is responsible for 1.25 million deaths per year. Invested $830 million in national advertising campaigns and community-based programs to promote responsible drinking; prevent underage drinking and drunk driving
Did you have a beer this past weekend?• Yes• No
Consumption of Alcohol• More than 50% of Americans consumealcoholic beverages• Beer – dominant preferred alcoholic beverageamong Americans• Top seller worldwide in alcohol segment• Steady sales in alcohol, despite recession• Production and marketing of beer
Have you ever consumed one of these followingproducts? (Budweiser, Bud Light, Bud Lime, Michelob,Shock Top, Becks, Landshark Lager, Stella,Hoegaarden, Leffe Blonde, Rolling Rock, MagaritavilleBrewing, Bacardi, Natty, Hurricane, Busch, Tilt,O’Doul’s)• Yes• No
Anheuser Busch• InBev• Leading American brewer• Leading manufacturer inthe industry• Official beer of Super Bowland NFL• Grupo Modelo
Rank Name Brand Value Brand Value % Change1. $8.8 billion 12%2. $7.2 billion (12%)3. $6.6 billion 26%4. $5.5 billion 5%5. $4.6 billion 68%6. $4.5 billion (6%)7. $3.4 billion 9%8. $2.5 billion 8%9. $2.0 billion NA10. $1.9 billion NA
Marketing Beer• Prohibition• Televisionadvertisements• Packaging sizes• Placement of ads
Anheuser Marketing Strategies• Product array and quality - differentiation• Unique and memorable• Super Bowl• Provocative• Humor• American products
Culture• Marketers must choose appropriate symbols inadvertising• These symbols can include actions, including the‘party scene’ that has come to be associated withdrinking the alcohol that Anheuser Busch sells.• These symbols and actions can include pretty girls,loud music, and dancing that accompany the partyand bar scenes across America.• Generation Y
Subculture• Male Subculture• Anheuser Buschtargets mostly men intheir commercials bydepicting salaciouswomen in oftenskimpy clothing.
Beer Around the World• Raw Materials• Trade• Imports• Microbrews
Responsible Drinking• Celebrates global beer responsibility day• Underage Drinking• Developed programs to prevent drunk driving• Addressing alcohol abuse issues on campuses• Promotes responsible drinking• “Budweiser Means Moderation”
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