Content |
Assets
InBev is the world's largest beer producer with a market share of 45.6%, according to 2017 analysts at Statista.
AB InBev Brands
Performance indicators
2022: Losses of $1.1 billion in the quarter due to withdrawal from the Russian market
As it became known in early May 2022, AB InBev, in the first quarter of 2022, registered a loss of $1.1 billion associated with the departure of the beer manufacturer from the Russian market. As specified in the statements of AB InBev, we are talking about non-cash impairment losses in connection with the planned sale of a stake in the Russian joint venture AB InBev Efes.
On April 22, AB InBev announced that it was going to sell its stake in the AB InBev Efes joint venture, and was also discontinuing the investment. The company is in talks to sell its stake to Turkey's Anadolu Efes.
After the announcement of AB InBev about plans to sell its non-controlling stake in the joint venture, the press service of AB InBev Efes reported that the company's operating activities in Russia continue as before. The Belgian concern noted that the potential deal could include the suspension of the license for the production and sale of Bud beer in Russia.
Due to the loss of $1.1 billion caused by the departure of AB InBev from the Russian market, the company recorded a sharp decrease in net profit in the first quarter of 2022 - $95 million from $595 million. At the same time, revenue rose by 11.1% and reached $13.24 billion, and sales of alcoholic beverages increased by 2.8%, to 139.34 million hectoliters, of which 20.12 million hectoliters (+ 13.9%) accounted for the EMEA region (it includes Russia). The company's revenues on the Russian market are not indicated in the statements for the first quarter of 2022.
By May 2022, AB InBev's portfolio includes more than 500 beer brands, including Budweiser, Corona, Stella Artois, Beck's, Hoegaarden, Leffe, Brahma, Jupiter and more. In Russia, the concern produces Klinskoye, Old Cask Miller, Siberian Crown and others. In total, the company has 11 breweries in the country.[1]
2020
Decrease in revenue by 10.4%, to $46.88 billion, net profit 6.5 times - to $1.41 billion
In 2020, the world's largest brewing company AB InBev recorded revenue of $46.88 billion, which is 10.4% lower than in 2019, when the figure was $52.33 billion. The company's net profit for 2020 amounted to $1.41 billion, having decreased 6.5 times. In 2019, the profit was $9.17 billion.
It follows from the financial statements of AB InBev that the business, financial position, cash flow and operating results of the company were affected and may still be affected by the crisis and restrictions associated with the COVID-19 coronavirus pandemic. The company notes that consumers managed to adapt to the new conditions relatively quickly, in particular, they switched to home consumption, which allowed AB InBev to increase beer sales in the second half of the year by 2.2%, including through online orders.
By the end of 2020, the company's beer sales decreased by 5.7%, to 530.6 million hectoliters. South America is the leader in beer sales - 144.299 million hectoliters, followed by Middle America with an indicator of 120,800 million hectoliters, in North America - 106.846 million hectoliters. In EMEA, sales reached 76.207 million hectoliters, and in the Asia-Pacific region - 81.649 million hectoliters. Exports accounted for 933 million hectoliters. AB InBev recorded a decrease in sales of its own beer at 5.8%, and non-alcoholic drinks - by 3.8%. The cost of goods by the end of 2020 increased by 3.1% and in terms of one hectolitre increased by 9.8% - this is associated with the impact of COVID-19 and the need to introduce changes in the supply chain.
The total revenue of global brands Budweiser, Corona, Stella Artois in the world showed a decrease of 5%, and outside their home markets - by 5.3%. AB InBev continues to support the premium strategy: revenue of the High End craft and special brands portfolio increased by 4.1% in 2020[2]
Global Beer Market Share - 26.5%
At the end of 2020, Anheiser Bush InBev occupied 26.5% of the global beer market (data from Euromonitor International UK). Read more here.
Information Technology at Ab InDev
2019: Creation of information security division
On June 13, 2019, AB InBev announced the creation of the cyber division The Beer Tech, thanks to which the brewing giant intends to protect itself from hacker attacks. Read more here.
2018: Settlement with SAP of software piracy dispute
In March 2018, it became known about the settlement of the Anheuser-Busch InBev lawsuit with a German corporate developer software SAP who accused the world's largest brewing company of piracy.
The fact that InBev and SAP have agreed is reported in the annual report of the Belgian company. Moreover, it follows from the document that the settlement agreement was signed back in June 2017. It became known about him only after 9 months. SAP confirmed to CIO the resolution of the conflict, but refrained from informative comments.
 | There is nothing to say, except that there was a dispute that was settled by mutual agreement, - said a representative of SAP. |  |
In September 2010, SAP accused InBev of violating the terms of the Software License Agreement (SLA), stating that the beer manufacturer directly and indirectly used SAP systems and data without having the appropriate paid licenses. The software company estimated the damage at $600 million and demanded a change in the contract.
SAP went to the commercial arbitration court, in which proceedings are usually held without releasing data, unlike other types of courts, in which the filing of a lawsuit and the issuance of a verdict are published in the public domain. Therefore, it is not known under what conditions the companies agreed. Most likely, InBev paid some amount.
Cerno Professional Services licensing specialist Robin Fry, after reviewing InBev's financial report, noted the cost line for "improving administrative capabilities and purchasing hardware and software." In 2017, these costs exceeded $1 billion, which is $270 million more than a year earlier. Even if we assume that all this increase was due to compensation in favor of SAP, the amount is much lower than the ($600 million) that the German company demanded.[3]
History
2023
Sale of stake in Russian JV to Turkish partner Anadolu Efes
In December 2023, Anheuser-Busch InBev agreed to sell its stake in the Russian joint venture to Turkish partner Anadolu Efes, one of the major European deals to sell its stake in Russia. Anadolu Efes becomes the sole owner of the enterprise. The deal is valued at between $1.1 billion and $1.3 billion, according to KPMG.
Hundreds of workers fired over transgender ads
On July 26, 2023, Anheuser-Busch InBev (AB InBev), the world's largest beer producer, announced a restructuring that would lay off hundreds of employees. The cuts come amid a controversial ad for a transgender foam drink.
AB InBev has launched an advertisement on the American market for the popular Bud Light beer featuring transgender Dylan Mulvaney. After that, sales of the drink began to fall rapidly - both in supermarkets and in bars. A wave of protests swept across the United States: consumers attacked AB InBev, and the corporation's capitalization began to decline. It is estimated that the market value of the manufacturer Bud Light decreased by about $5 billion due to unsuccessful advertising. AB InBev expected that the controversial advertising campaign would attract a liberal audience and LGBT community to the foam drink. However, as a result, the company lost a huge number of buyers with traditional views.
AB InBev said in a statement that the restructuring would simplify the company's organizational structure and improve governance efficiency. Job liquidation accounts for "less than 2%" of the company's total U.S. workforce. According to official data, by the end of July 2023, more than 19 thousand employees were listed in the American divisions of AB InBev. Thus, approximately 380 posts will be eliminated.
| | Today we made a very difficult but necessary decision to reduce a number of positions in our corporate organization. While we never take decisions like this lightly, there is no other option in the current climate: changes will help ensure success in the long term, said AB InBev CEO Brendan Whitworth[4] | |
A sharp drop in sales and a decrease in value by $5 billion due to advertising with a transgender person
In mid-April 2023, Anheuser-Busch lost over $5 billion in market capitalization due to the fact that its Bud Light brand removed advertising from transgender Dylan Mulvaney.
According to the New York Post, after the appearance of an advertisement in which Mulvaney drinks Bud Light beer, sales of this brand began to fall rapidly in the United States. Moreover, Americans on various social networks advocate that no one else buys American light lager with a low density and fortress. According to media reports, many hashtags on TikTok, Twitter and Instagram have been spotted on social networks. Users are calling for a boycott of the beer. In turn, bars declare that they have 50 and 70% fewer visitors to order this beer. The main complaint of people is the involvement of their favorite beer in the fashionable political agenda.
Dylan Mulvaney is a 26-year-old influencer with 10.8 million followers on TikTok and 1.8 million on Instagram (an organization banned in Russia). Mulvaney keeps a diary, "Girlhood Days," in which she talks in detail about the transition process - gender change and her observations and experiences about it. On the anniversary of the transition, he received a contract, a personalized beer with his own image from Bud Light and congratulations on the "365th day of genuine life" from US Vice President Kamala Harris.
In mid-March 2023, the Belgian-American beer giant Anheuser-Busch cost almost like the blessed times of the COVID-19 pandemic, and its capitalization exceeded $132 billion. As of April 13, 2023, its price decreased to $126 billion, the price of depositary receipts traded on the New York Stock Exchange decreased by 4.5%.
Traditional Bud Light consumers did not want to associate themselves with the American transgender and began to massively abandon the usual drink, cracking down on its reserves in a variety of ways. Up until the shooting, as musician Kid Rock did on April 10, 2023 with his automatic rifle. Some users shoot their own parody ads and suggest including them in Bud Light's black PR.
According to the New York Post, the leadership of Anheuser-Busch in such a difficult situation behaves extremely helpless and does not try to stop the drop in quotations with any intelligible explanations or repentance, hoping to wait out the storm on the sidelines. For some reason, Bud Light marketers decided that their close cooperation with Dylan Mulvaney would attract a liberal and LGBTQ + audience to beer and correct the homophobic image of Anheuser-Busch. But instead, they infuriated and alienated ordinary Republican Americans - the main consumers of this most popular US beer[5]
2022: The start of the production of beer of foreign brands in Russia
By August 2022, the brewing company AB InBev Efes announced that it had launched the production of beer of a number of foreign brands in Russia - Spaten, Franziskaner, Leffe Blonde and Brune. It is noted that now localized brands are produced at factories in Ulyanovsk, Kaluga, Omsk, Volzhsky, Saransk, Klin and Ivanovo.
2015: $104 billion SABMiller purchase
The world's largest brewing company Anheuser-Busch InBev (InBev) reached an agreement in the fall of 2015 to buy the second largest market in Britain's SABMiller, Bloomberg reported. As noted, the amount of the transaction will be $104 billion.
1962
Notes
- ↑ The loss of the brewing company AB InBev amounted to $1.1 billion due to the departure from the Russian market
- ↑ Anheuser-Busch InBev Reports Fourth Quarter and Full Year 2020 Results
- ↑ SAP settles licensing dispute with AB InBev
- ↑ Bud Light maker to lay off hundreds of US corporate staff after sales slump
- ↑ [1]Bud Light’s trans ploy backlash shows you CAN fight Big Woke
| The site content is translated by machine translation software powered by PROMT. The machine-translated articles are not always perfect and may contain errors in vocabulary, syntax or grammar. Read original article If you find inaccuracies or errors in the results of machine translation, please write to editor@tadviser.ru. We will make every effort to correct them as soon as possible. |