Financial Analysis of Ab Inbev
Financial Analysis of AB InBev
Debra Griffin
Shorter University
Managerial Accounting
ACCT 5300
Dr. Amy Austin-Savage
October 31, 2012
Financial Analysis of AB InBev
A Brief History of Anheuser-Busch
The Anheuser-Busch InBev Company (AB InBev) was established throughout the years through mergers and acquisitions. AB InBev is the largest brewery in Jupille, Belgium. They operate in North America, Latin America, South America, Europe, and Asia Pacific.
Due to political upheavals in Germany and Bohemia in 1848, many German immigrants settled in St. Louis, Missouri (“Anheuser-Busch,” 2011). Eberhard Anheuser was a trained soap maker and became part owner of the Bavarian Brewery. By 1860, he bought the investors’ shares and the brewery name was changed to E. Anheuser & Co. Adolphus Busch married Lilly Anheuser, Eberhard’s daughter and later Adolphus purchased half ownership of Anheuser’s brewery, becoming a partner (“Anheuser-Busch,” 2011).
Due to Busch’s innovations, the brewery became the first to use pasteurization, allowing the beer to be shipped long distances without spoiling. By the early 1880’s, the brewer introduced artificial refrigeration, rail-side icehouses, and refrigerated railcars. These innovations allowed the company to grow and distribute their beer across the country. To market the beers Busch used traditional selling methods; however, Busch’s methods were more organized and deliberate than his competitors. Busch “pioneered the use of giveaways and premiums, and used his brewery as a showplace for the public to visit” (“Anheuser-Busch,” 2011). The brewery company was renamed Anheuser-Busch Brewing Association in 1879 to recognize Adolphus’ efforts. The company became one of the nation’s leading breweries in 1901 when it broke the one million barrels of beer sales mark (“Anheuser-Busch,” 2011).
Over the years, the company grew through acquisitions and mergers and became AB InBev. In 1989, a group of investors
Debra Griffin
Shorter University
Managerial Accounting
ACCT 5300
Dr. Amy Austin-Savage
October 31, 2012
Financial Analysis of AB InBev
A Brief History of Anheuser-Busch
The Anheuser-Busch InBev Company (AB InBev) was established throughout the years through mergers and acquisitions. AB InBev is the largest brewery in Jupille, Belgium. They operate in North America, Latin America, South America, Europe, and Asia Pacific.
Due to political upheavals in Germany and Bohemia in 1848, many German immigrants settled in St. Louis, Missouri (“Anheuser-Busch,” 2011). Eberhard Anheuser was a trained soap maker and became part owner of the Bavarian Brewery. By 1860, he bought the investors’ shares and the brewery name was changed to E. Anheuser & Co. Adolphus Busch married Lilly Anheuser, Eberhard’s daughter and later Adolphus purchased half ownership of Anheuser’s brewery, becoming a partner (“Anheuser-Busch,” 2011).
Due to Busch’s innovations, the brewery became the first to use pasteurization, allowing the beer to be shipped long distances without spoiling. By the early 1880’s, the brewer introduced artificial refrigeration, rail-side icehouses, and refrigerated railcars. These innovations allowed the company to grow and distribute their beer across the country. To market the beers Busch used traditional selling methods; however, Busch’s methods were more organized and deliberate than his competitors. Busch “pioneered the use of giveaways and premiums, and used his brewery as a showplace for the public to visit” (“Anheuser-Busch,” 2011). The brewery company was renamed Anheuser-Busch Brewing Association in 1879 to recognize Adolphus’ efforts. The company became one of the nation’s leading breweries in 1901 when it broke the one million barrels of beer sales mark (“Anheuser-Busch,” 2011).
Over the years, the company grew through acquisitions and mergers and became AB InBev. In 1989, a group of investors
References: Allen, J., & Zook, C. (2012, May 4). The strategic principles of repeatability: How nonnegotiable fuel growth. How can a company sustain profitable growth? [brief]. Retrieved from http://www.bain.com/publications/articles/the-strategic-preincipels-of-repeatability.aspx Anheuser-Busch: Dedication to our craft. (2011). http://anheuser-busch.com/index.php/our-heritage/history/ Anheuser-Busch InBev. (2011). ABInBev Annual Report 2011 [Annual report]. Brouwerijplein, Leuven: AB InBev. Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2010). Managerial Accounting (13th ed.). New York, NY: McGraw-Hill/Irwin.