Anheuser-Busch Inbev: Company Analysis

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Anheuser-Busch Inbev, is the world’s largest brewing company in the world. Its corporate headquarters are located in Leuven, Belgium. Anheuser-Busch Inbev, is currently traded in 3 different international as well as U.S markets. It is traded on the NYSE (BUD), Euronext (ABI), and JSE (ANB). Currently, Anheuser-Busch Inbev owns and sells, 200 different brands across the world. It’s global brands, are Budweiser, Corona, and Stella Artois. The company’s international brands are Beck’s, Hoegaarden, and Leffe. The company operates in twenty-six countries across the world, as well as has sales in over 100 different markets globally. Anheuser-Busch Inbev, was created through multiple mergers and acquisitions throughout the years. The first …show more content…
SABMiller brewing company was Anheuser-Busch Inbev’s main competition. SABMiller had a total revenue of $22.13B in 2015, compared to Anheuser-Busch Inbev’s $43.6B. The combination of these two companies will now account for 30% of the brewing beverage industry, and will have an annual revenue of $55 billion per year (Shareholders Approve SABMiller Takeover by Anheuser Busch Inbev, 2016). This merger will allow Anheuser-Busch Inbev, to fill in at different points of the world where they did not formally have much of a presence, but SABMiller does. These locations include a dominance in Africa, as well as a more complete dominance in …show more content…
Since the merger with SABMiller, and the new market in Africa, analyst expect earnings to raise from $3.70 per share this year, to $4.77 per share in 2017, which would lead to the stock being highly valued (Looking for a Great Foreign Stock? This Bud’s for You, 2016). Also, beer stocks overall have returned more than 7.5% in real terms annually, and compared to an S&P 500 stock, beer shares have outperformed by 2.5% per year. AB Inbev is also a very good stock to have in your portfolio due to the size of the company. Owning nearly 30% of the beer global market share, the company is able to negotiate prices for products needed for production, which could increase the company’s profit margin substantially. Analysts have also said that AB Inbev will benefitting from craft beer threat fading away. Craft beers such as Samuel Adams have had double digit growth, which posed a threat to large beer brewing firms. (Anheuser-Busch Inbev 3 Pros, 3 Cons, 2016). Since this threat is beginning to subside, and supply is beginning to overwhelm demand, this will eventually lead to large craft brewing companies sell to larger companies for cheap, if they want to stay afloat. Anheuser-Busch Inbev would be a good candidate as they have recently been buying craft brewing companies, such as Goose Island, Breckenridge and Blue Point Brewing. This will be able to bring more value to the

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