A-B Inbev Case Study

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A-B INBEV Case Study A-B INBEV Case Study Beer Industry Beer is the oldest alcoholic beverage in the world with production dating back to 9500 B.C. The beer industry is classified as a mature market since demand is relatively stable. Beer is the fourth largest beverage market in the global beverage industry behind soft drinks, coffee and tea, and dairy drinks. The beer market was considered recession proof but sales of beer in France and the United Kingdom declined drastically in 2008-2009. Premium brands of beer sales overall declined as consumers switched to cheaper substitutes during the last recession. AB InBev Overview AB InBev is a beverage company that sells beer and non-alcoholic beverages globally. After the merger of Anheuser-Busch and InBev, AB InBev became the largest brewer in the world. Their portfolio of beers has more than 200 brands. AB InBev has created a vision of becoming the “Best Beer Company in a Better World”. This vision includes responsible drinking programs, preserving the environment, and giving back to communities in addition to growing the profitability of the company. International Expansion AB InBev operated 152 plants in 30 countries when they started to form an expansion plan. One of the biggest investments they made to expand internationally was in China and Brazil. China was one of the fastest growing markets in the beer industry. AB InBev built breweries and set a goal of brewing one million liters of Budweiser and Harbin beer at these new Chinese breweries. In addition to the China and Brazil expansions, AB InBev focused on strengthening their presence in other parts of the globe. To increase sales, they focused on product and packaging innovations. In addition, they invested heavily in marketing campaigns aimed at increasing sales and customer loyalty to premium

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