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Anheuser-Busch InBev. Alexander Bring (Chip). Overview. Background on Company Creation of AB- InBev Domestic problem International problem Conclusion. Company Background. The leading global brewer and one of the world’s top 5 consumer product companies.
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Anheuser-Busch InBev Alexander Bring (Chip)
Overview • Background on Company • Creation of AB- InBev • Domestic problem • International problem • Conclusion
Company Background • The leading global brewer and one of the world’s top 5 consumer product companies. • 6 operational Zones: North America, Mexico, Latin America North, Latin America South, Europe, and Asia Pacific. • Well over 200 beer brands including global brands including Budweiser, Stela Artois, Corona
Company Background • Interbrew • Belgium based brewing company • Stella Artois, Hoegaarden, and Beck’s • Ambev • Created in 1999 by a merger between Brahma Brewery and Antarctica Brewery • Antarctia, Brahma • Anheuser-Busch • American Brewing company • Budweiser, Natural Light
Products InterbrewAmbev Anheuser-Busch
Creation of Inbev • Merger of Interbrew(3rd largest brewing by volume company in the world) and AmBev(5th largest Brewing by volume company in the world) • This merger made InBev the largest brewing company by volume in the world in 2004
Creation of AB-InBev • Merger of Inbev (#1 brewing company by volume in the world) with Anheuser-Busch (#2 brewing company by volume and the #1 revenue sales in the world) • This merger created AB-InBev and made the the #1 brewing company by volume and in revenue sales
Domestic Problem Problem • Relocation of Hoegaarden Brewery to the city of Jupille • Protest in the street • Quality decrease due to production of special yeast in Hoegaarden Solution • Moved the brewery back to Hoegaarden where they could produce the yeast
International Problems • Foreign Exchange rate Risk • The risk that changes in exchange rates will hurt the profitability of a business deal. • Floating Exchange rate • Fluctuating rate in which a country’s currency fluctuates on the foreign exchange market • Examples: dollar, euro, yen, pound, franc. etc,…
Spot Exchange Rate • Effects shareholders short run: (Day to day) • Price fluctuates • Effects AB-InBev in the long run: • Brewery's depreciate • Currency inflates • Repatriate profits
Conclusion • Exchange rate risk is always there: • Certain level of expertise • Ride out exchange rate risk