The document provides an overview of Anheuser-Busch InBev's history, financial performance, industry analysis, marketing strategies, and recommendations for global expansion. It traces AB InBev's origins to 1852 and highlights its growth into the largest brewery through acquisitions and innovative marketing. The analysis finds opportunities in expanding experiential marketing and leveraging rising beer consumption in Asia-Pacific markets through premium brands and production expansion in high-growth countries.

3. Company History
 Financial Analysis
 Industry Analysis
 Porter’s Five Forces Analysis
 Critical Success Factors
 External Environment Analysis
PESTEL Analysis
 Customer Analysis
 Marketing Analysis
Recommendations

4.  1852 – George Schneider opened Bavarian
Brewery in St. Louis, IL
1860 – Schneider sold the brewery to William
D’Oench & Eberhard Anheuser
Ran brewery under E. Anheuser
D’Oench sold his half to Adolphus Busch

5. Eberhard Anheuser & Adolphus Busch

6.  Innovators in all aspects of business
Transportation, bottling, &brewing
1870s - implemented a new brewing style from
the town of Budweis, Czech Republic
1876 – Release of Budwesier

7.  1879 – Named Anheuser-Busch Brewing Association
 1880 – Anheuser passed away, Busch named president
Busch pushed for expansion in every aspect of business
1913 – Busch passed away, son named president

8.  August Anheuser-Busch Sr. era
1920 - Prohibition hits the United States
Other opportunities?

9. 1957 – Named largest brewer in the United States
Family owned and operated until 2008
2008 – InBev purchased Anheuser-Busch for $52
billion
Anheuser-Busch is St. Louis

10. 2013 revenue of $43 billion, profits of $16.5 billion
Market Share
 United States – 47%
Canada – 40%
Mexico – 58%
Brazil – 68% beer, 18% soft drink
Argentina – 78% beer, 21% soft drink
Belgium – 56%

11.  Often imitated but never duplicated
Focus
Quality
Innovation
Marketing
Acquisitions
Compliments other business aspects to
allow for growth

13. • New York Stock Exchange – BUD
• $43.2 billion in revenue
• $142 billion Total Assets
APPENDIX 1 (AB Inbev Segment Revenues)
Market
Revenue
(USD million)
Revenue
(% of Total)
Revenue
(USD million)
Revenue
(% of Total)
Revenue
(USD million)
Revenue
(% of Total)
North America 16,023 37.10% 16,028 40.30% 15,304 39.20%
Mexico 2,769 6.40% — — — —
Latin America North 10,877 25.20% 11,268 28.30% 11,350 29.10%
Latin America South 3,269 7.60% 3,209 8.10% 2,878 7.40%
Western Europe 3,620 8.40% 3,625 9.10% 3,945 10.10%
Central & Eastern Europe 1,445 3.30% 1,668 4.20% 1,755 4.50%
Asia Pacific 3,354 7.80% 2,690 6.80% 2,317 5.90%
Global Export & Holding Companies 1,839 4.20% 1,270 3.20% 1,496 3.80%
Total 43,195 100.00% 39,758 100% 39,046 100%
*AB InBev 2013 annual report pg. 34
2013 2012 2011

14. • “Stitching”
– 663,074,830 shares, which represented a 41.24%
voting interest
• 521 institutions own 58%
• 379 Funds own 2.86%

15. BUD vs. SAB.L
$110.60 Stock Price $55.61
$126.27 1y Target $56.00
$177.65B Market Cap $88.92B
782M Float 862M
18.28 Forward P/E 11.61
0.98 BETA N/A
1.5 Analyst Recom. 2.8
3.60% Yield 1.97%

16. • ROA
• 11.6%
• Financed
• 1.56 debt to equity
• inventory turnover
• 5.96 times per year (61 days)

17. Industry Description
• Part of the brewing industry
• Varies in size
• 4 companies = 90% of industry
revenue
• Highly concentrated
• Increasing popularity of
craft beer

18. Rivalry Within Industry
(Medium)
• Plenty of companies; few with
significant global market share
• Compete for consumer tastes
• M&A’s to eliminate competition
and gain market share
• Growing craft beer market
• 10% growth
• 7% U.S market share

19. Supplier Bargaining Power
• Large companies have more
influence on price
• Large volumes purchased
• Market is saturated with
suppliers
• Easy to change supplier
• Small breweries have less
influence on price
• Smaller volumes
purchased but,
• May buy locally
• Lower shipping costs
• Close relationship

20. Threat of Substitutes (High)
• Wine, hard-liquor, soft drinks,
etc.
• Price ceiling on beer
• Price-performance trade-off
• Willing to pay more for a
certain feature

21. Buyer Bargaining Power (Medium-
High)
• Three-tier distribution system
• Distributors are gateway to end-
user
• Have more control over price
• Prevent breweries from over-
charging customers

22. Threat of New Entrants (Low-
Medium)
• Microbreweries entering the
market everyday
• Limited shelve space
• Overshadowed
• Easy to enter the market, hard to
get established

23. • Continue to innovate; adjust to
consumer taste
• Line extensions, new liquids,
new marketing
• “Open Innovation” concept
• Maintain strong brand image
• Continue building a strong,
diverse brand portfolio
• Use strategic M&A’s to gain
new customer segments

24. National Beer Wholesalers Association
• Founded in 1938
• 3,300 licensed, independent beer distributors across the US
Employment
• 345,000 direct and indirect jobs
• 130,000 full time employees
National total value of production
• $54 billion per year
• $10.3 billion per year in federal, state and local taxes
• $11 billion per year in alcohol, excise and consumption taxes

25. Alcohol Regulation
• 21st Amendment - authority to the state to regulate the sale of
alcohol.
• The Three Tier System - provides transparency and traceability
Innovation & Technology Committee
• Global Data Synchronization, shared services, green solutions,
monitoring technologies and e-commerce.
LICENSED
DISTRIBUTOR
LICENSED
RETAILERS
Responsible
Consumers
of Legal
Drinking Age
BREWER OR
IMPORTER

26. Conservation Actions
• In their facilities, on the roads and in the marketplace.
• Saving money through environmental initiatives
Recycled Point-of-
Sale Material
Hybrid, Biodiesel &
Compressed Natural Gas Beer
Delivery Trucks
Solar Energy Powers
Warehouses
Energy efficient bulbs and
Motion sensors

27. Who are our customers?
What do we know about them?

29. women
men

30. Hispanic drinking-age adults
2010
2030
2050
0% 5% 10% 15% 20% 25% 30%
Growth Rate

32. Geographical Promotions
 Michelob Golden
Draft/Michelob Golden
Draft Light
 Midwest
 Ziegenbock
 Kokanee
 Texas
 Canada

33. How to Identify the Geographic Market Segment

34. Variety of Marketing Strategies to
Achieve Emotional Connection with
Consumers
Long & Prestigious History of Marketing
Excellence

35. Adolphus Busch was Master of
Advertising & Branding
Pioneered Coordinated, Multi-year Ad
Campaigns, Point of Sale Advertising &
Giveaways
Used Branded
Pocket Knives
instead of
Calling Cards

36. Epic Super Bowl Advertising Campaigns
 Biggest Event in Sports & Advertising
 $4 Million per 30 Seconds of Ad Time
2014 AB InBev spent $28 Million
 5 of 16 Best Super Bowl Commercials of
all Time Belong to AB InBev Products

37. #4 “Respect” Campaign 2002

39. Have Appeared in at Least One Super Bowl
Commercial Every Year since 1986
2014 “Puppy Love” Campaign

40. EXCLUSIVE NFL SPONSORSHIP
6 Year Deal Worth $1.6 Billion
2011-2017

42.  Strategy Based on 3 Socially Responsible Platforms
Responsible Consumption of Alcohol
Preservation of the Environment
Emergency Disaster Response
Invested $1.4 Billion since 1982

43. Responsible Consumption of Alcohol
First Campaign
Launched in 1982
2013 Blimp
Campaign
New Year’s Eve
Campaign

44. Responsible Consumption of Alcohol
Resources for Parents to Help Them Discuss
Underage Drinking with Children

45. Preservation of the Environment
 Reduced Water Use in Breweries by 40% Last 5 Years
 Average Recycling Rate of 99.6% at All Facilities
 Utilize Alternative Energy Sources
 60% of Fuel at Houston Brewery from Methane
Produced at Nearby Landfill

46. Emergency Disaster Response
MAY 2014
Joined
American Red
Cross’ Annual
Disaster
Giving
Program
$500,000 for Food,
Shelter, Health Services
$250,000 for Support of
Blood Services

47. Emergency Disaster Response
72 Million Cans of
Drinking Water
Donated to
People Impacted
by Natural &
Other Disasters
Since 1988

48. Social Media Marketing
Justin Timberlake,
Creative Director

50. Experiential Marketing
Hottest New Trend in Marketing
Creativeguerillamarketing.com
Experiential 101: What is Experiential Marketing
“Helping Consumers Experience a Brand by
Engaging as Many Human Senses as
Possible to Create Customer Loyalty &
Influence Buying Decisions”

51. Experiential Marketing
Julia Mize, Vice President
Experiential Marketing
Anheuser-Busch InBev
Named VP in 2013
Newly Created Position
Revolutionize Experiential
Marketing Methods
2014 Award for Best
Production of an Event
(Consumer) for Bud Light
50/50/1

52. Experiential Marketing
Temporary Event Venues
2014 Super Bowl
Completely Rebranded
a Cruise Ship

53. Mainstay of Experiential Marketing
Daily Brewery Tours
5 of 12 Breweries

54. Experiential Marketing
March 2014
Ballpark Village in
Downtown St. Louis
26,000 Ft2 on 3 Levels
Restaurant, 11 Bars
Rooftop Deck
21’ Long Tap Wall—
Swipecard for Self-Serve
200 Beers on Tap
52 High Def TVs

55. Marketing Recommendations for Global Expansion
Clydesdales Will Most Likely Not Be as Effective
Sporting Events Such as Cricket
Socially Responsible Platforms Relevant to Market
Underage Drinking Not as Relevant in Latin
America (Legal Drinking Age of 18)
Disaster Response in Foreign Markets
Focus on the Environment in Foreign Markets
Open Breweries with Tours in Foreign Markets
Promote International Events with Bud Light Hotel
Partner with Other International Organizations

56. The world’s biggest beer consumers
• Asia-Pacific’s brewing industry
is worth $258 billion
• The beer market is growing
2 times more than the rest
of the world
• There are 57 million new
consumers each year.
• Premium segment is growing
2.5 times faster than the
overall industry.
Fast emerging economies
"Beer has a clearer correlation
with strong economic growth”
Nirgunan Tiruchelvam
(Consumer Research Analyst)
Globalization
Half of the world’s population
(around 3.8 billion people)

57. 7.2%
6.3%
8.5%
8.7%
Highest potential beer consumption growth for the next five years
Per Capita
Consumption
Overall
Consumption

58. • Since 2011, AB InBev has acquired
important breweries in China
• The company’s growth in China is
mainly being driven by
Budweiser, Harbin and Sedrin
brands
• During 2012, AB InBev's beer
sales by volume in Asia Pacific
grew by 1.9% and revenues per
hectoliter increased by 10.6%

59. • Continue actively expanding its production capabilities in regions
across China and other countries in Asia-Pacific
Recommendations
• Continue specially focused on leveraging the increasing spending
power of consumers in Asia-Pacific by targeting the premium segment
• Consider to expand on other beer brands on this market.

60. • Mexico is the world’s 6th-largest beer producer and beer consumer.
• Mexicans drink an average of 62 liters of beer a year
• The beer market in Mexico is growing quickly
• The beer production increased 8% from 7.9 B liters in 2010 to 8.6 in 2012
• The beer market is expected to reach a value of $22.1 billion by 2017

61. • Expected increase in beer demand is primarily driven by factors like:
• robust population base in urban areas,
• strong gross domestic product growth, and
• rising middle-income group and consumer spending.
• Last year the company acquired Grupo Modelo, which is the largest
brewery in Mexico with 63% of the Mexican beer market

62. • Take advantage from the significant growth potential that Modelo
brands have all over the world
• Introduce AB InBev brands in Mexico through Modelo’s distribution
network
Recommendations