Inbev's Acquistion of Anheuser-Busch
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Case Code: BSTR415 Case Length: 16 Pages Period: 2008 - 2012 Pub Date: 2012 Teaching Note: Not Available |
Price: Rs.500 Organization: Anheuser-Busch InBev N.V. Industry: Beverages Countries: Belgium, Brazil, USA, Global Themes: Business Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Background Note
During the 1800s, brewing was one of the main industries in the USA. In 1848, many Germans immigrated to St. Louis due to the European revolutions, and they brought with them a different style of brewing called Lager. Lager, meaning 'to rest' in German, required more time and care to brew than the ordinary beer. In 1852, George Schneider established Bavarian Brewery. It was acquired by Ebehard Anheuser (Ebehard), who renamed it E Anheuser & Co...
Adolphus Busch (Adolphus), Ebehard's son-in-law, joined the company in 1854. Budweiser beer was introduced in 1879. It appealed both to the Americans and the Germans and soon became the company's flagship brand. The name of the company was changed to Anheuser-Busch Brewing Association in the same year. The company pioneered the use of the pasteurization and artificial refrigeration in brewing. These technological innovations allowed the beer to be exported to different countries and the company expanded its operations. In 1880, Adolphus became the president of the company. Michaelob was introduced in 1896.....
In 1901, the company set a record for selling 1 million barrels of beer. In 1920, when the national prohibition act came into force in the US, many leading breweries had to shut down their operations. Though Anheuser also saw a steep fall in its sales, it steadily diversified its operations into non-alcoholic beverages. Under the leadership of August A Busch Sr., who succeeded Adolphus in 1931, the company produced and sold more than 25 different non-alcoholic products such as soft drinks and ice cream. In 1933, the prohibition was lifted. In 1938, the company's sales crossed the 2 million barrel mark...
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