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According to a popular company legend, Adolphus Busch obtained the recipe for his beer during a visit to a German monastery.
When Anheuser-Busch was founded in the 1850s, it started as a small neighborhood brewery. Through the combined efforts of Eberhard Anheuser, Adolphus Busch, and thousands of employees, our brewery quickly transformed from a local fixture into a national presence. AB InBev is highly reliant on the Latin American market, and their success is dependent on the future growth of these countries. With the combination of very strong financials, a fairly low valuation, and a high dividend growth rate, AB InBev looks poised to continue their strong growth.
This can only be achieved through a firm with extensive knowledge, experience, and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities, and threats, it is necessary to conduct a SWOT analysis by Anheuser Busch.
Anheuser Busch At A Glance – Anheuser Busch SWOT Analysis
Company: AB InBev
Founders: Adolphus Busch | Eberhard Anheuser
Year of establishment: 1852, St. Louis, Missouri, United States
CEO: Brendan Whitworth
Headquarters: St. Louis, Missouri, United States
Employees (Dec 2020): 19,000
Ticker Symbol: BUD
Annual Revenue (Dec 2020): US$52.3 Billion
Profit net income (Dec 2020): US$16.7 Billion
Products & Services: Beer | Malt beverages | Energy drinks | Bottled water
Company Website: www.anheuser-busch.com
Top Anheuser Busch Competitors
Competitors: Molson Coors | Carlsberg | Heineken | Constellation Brands | Pabst Brewing | MillerCoors | The Boston Beer Company | Kingfisher Beer
Anheuser Busch SWOT Analysis – SWOT Analysis Of Anheuser Busch
SWOT Analysis Of Dell analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Dell SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Dell SWOT Analysis. Below Is The Detailed SWOT Analysis Of Dell.
Anheuser Busch Strengths – Anheuser Busch SWOT Analysis
1. Popularity in the market around the world: Anheuser Busch sells more than 100 distinct brands of liquor around the globe . Some of their most popular brands include Budweiser, Bud Lite, Busch Beer, Stella Artois, Natural Ice, Lime- A -Rita etc. The company is the market leading within the US and is an estimated part of the market of 42 percent.
2. Brands that are top sellers: Following the acquisition of Anheuser Busch acquired Groupo Modelo the company has expanded it’s collection by adding five top ten beer brands that are selling the most and now includes 17 brands that have retail sales of more than $1 billion.
3. The focus is on acquisitions: The brand has focused its efforts on acquisitions in order to grow and expand which approach has allowed it to maintain its momentum and maintain the financially stable. In contrast to its closest rival Heineken boasts an operational profitability ratio of 8.3 percent, Anheuser has a margin that is close to 43 .8 percent.
4. A strong belief system: The success of Anheuser is due to their faith in their beliefs. Some of the core beliefs that form the basis of Anheuser’s core beliefs are the focus on cost-cutting, a passion for winning, a focus in client satisfaction and the creation of a percolative culture and a commitment towards the values.
5. Work-Life Culture: The basis of the culture of work at Anheuser Busch is its transformational power and is not something that is a thing that begins and ends in the boardroom, but is in every company level and is followed by every employee.
Anheuser Busch Weaknesses – Anheuser Busch SWOT Analysis
1. Rising of dollar: Anheuser Busch is dependent on other markets for over 70 percent of its earnings and because of this, the increase in the dollar’s exchange rate against other currencies will impact the overall growth of the company.
2. Poor organic growth: Anheuser Busch is focusing on the developed marketplaces and the growth of the beer sector is slowing and the market has reached maturity. They cannot depend upon organic growth in this market.
3. Integration: Anheuser Busch in an impressive acquisition of its biggest competitor Sab Miller. But, following the acquisition it has been trying to integrate the two companies mostly due to a massive cultural difference.
4. Managing the volume: Anheuser Busch after its acquisition of Groupo Modelo owns almost 100 brands of liquor. The company operates operations across all regions that it operates in, with the concentration at Brazil, Europe, Mexico, Asia, Europe and currently expanding to Africa. Controlling the entire network in addition to distribution and the legal issues associated with selling alcohol products across different regions in which the legal implications differ significantly is a major issue.
Anheuser Busch Opportunities – Anheuser Busch SWOT Analysis
1. Craft Beer: The rise of the craft beers is promising for any company operating within the beer industry. The growing focus on craft beers opens up a variety of possibilities to collaborate in brewing, which can allow companies to reduce costs.
2. Exposure: The internet boom has helped consumers around the globe get exposure to international brands of liquor and customers in pubs in India and Malaysia request Budweiser and Bud Light. This increased awareness could aid in helping Anheuser Busch establish stronger presence in these markets.
Anheuser Busch Threats – Anheuser Busch SWOT Analysis
1. Competitors: Some of the major competitors to Anheuser Busch are Miller, Fosters, Heineken and Molson Coors.
2. Legal Issues: Many governments view alcoholism as a moral issue , and are making plans to raise taxes as well as reduce distribution. It could pose a threat for the business.
This is the SWOT report that Anheuser Busch has done. Please let us know if you have additional suggestions to add.
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