InBev
Euromonitor International's company profile, InBev offers detailed strategic analysis of the company's business, examining its performance in the beer market. The report examines company shares by region and sector, brand portfolio and new product developments, market and distribution strategies, challenges from the competition and future prospects. Use it to understand opportunities and threats facing the business and the factors driving success .
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Chapters: 8 | Tables: 30 | Publication date: Apr 2006
Table of contents
1. INTRODUCTION
1.1 KEY FACTS
Summary 1 InBev: Key Facts
2. CORPORATE OVERVIEW
2.1 FINANCIAL PERFORMANCE
InBev posts stellar 2005 as emerging market operations come to the fore
Acquisitions and strong adspend hit net profit growth
Table 1 InBev: Financial Summary 2004-2005
2.2 GEOGRAPHIC COVERAGE
Acquisitions and price rises mask organic volume decline in Western Europe
Decline in North America for InBev but stellar growth in Latin America
Eastern Europe and Asia-Pacific post strong growth in 2005
Table 2 InBev: Sales by region 2004-2005
2.3 BUSINESS FOCUS
3. STRATEGIC OVERVIEW
3.1 OPERATIONAL STRATEGIES
Internal operations
External operations
Summary 2 InBev: Business Agreements 2004
3.2 MARKET DEVELOPMENT
InBev pole position in beer safe but competition is set to rise
InBev well placed to rule as emerging market influence is set to grow
Profitability key to InBev’s future in FABs
Valuable PepsiCo partnership to maintain InBev’s interest in soft drinks
Table 3 InBev: World sales performance of company’s major markets
4. BEER BUSINESS OF INBEV
4.1 BEER BUSINESS DEVELOPMENT
Interbrew and Ambev combine in 2004 to form InBev
Interbrew established in 1987 from the merger of Brasseries Piedboeurf and Brasseries Artois
Brahma and Antarctica come together to form AmBev in 1999
InBev invests in Russian beer in 2005; it launches Beck’s in Poland
InBev grows its Chinese market exposure and gives Brahma a global launch
InBev invests heavily in advertising in the UK; it extends its deal with Lion Nathan in Australasia
InBev makes a major Chinese acquisition in 2006 and extends its star brands in Europe
InBev linked with Ochakovo in Russia and Mohan Meakin in India
5. INBEV PERFORMANCE IN BEER
5.1 COMPETITIVE CONTEXT
InBev: top dog in global beer
InBev is the number two player in Western Europe and number four in North America
InBev dominates Latin American beer with Skol and Brahma
Top 10 player in Eastern Europe, Asia-Pacific, Africa and the Middle East, and Australasia
5.2 COMPANY WORLD MARKET SHARES
Number one global beer status is built upon a stellar lager portfolio
InBev is top dog in dark beer and the number three player in non-/low-alcohol beer
Table 4 AmBev: World Beer Shares & Rankings by Sector 2000-2004
Table 5 Interbrew NV SA: World Beer Shares & Rankings by Sector 2000-2004
Table 6 InBev: World Beer Shares & Rankings by Sector 2000-2004
5.3 COMPANY SHARES BY REGION AND SECTOR
Latin America is the bedrock of InBev’s global beer presence
InBev gears up to take on BBH and Heineken in Russia
InBev invests in star brands in troubled Western European beer
FEMSA loss hits the company’s US standing, but Labatt continues to fly the regional flag
InBev goes head-to-head with Hite Brewery in South Korea and mounts a challenge in China
Non-/low-alcohol beer is key in Africa and the Middle East; lager is InBev’s main focus in Australasia
Table 7 InBev: Regional Shares of Beer by Sector 2004
5.4 MARKETING STRATEGIES
InBev identifies global flagship brands
Strong local brands are also a key focus for InBev
InBev gives Brahma a global launch
InBev invests in advertising for star brands in the UK
InBev invests in an expansive sponsorship programme
Speciality glasses are a key marketing tool; InBev is also keen to promote social responsibility
5.5 DISTRIBUTION STRATEGIES
InBev develops a Global Field Sales Force Academy
FEMSA’s US distribution deal ends, while the rights to Lowenbrau are purchased in Russia
6. INBEV BEER BRAND ASSESSMENT
6.1 BRAND PORTFOLIO
Global Flagship Brands
Global Speciality Brands
Multi-Country Brands
Local Brands
Former Interbrew brands dominate the Western and Eastern Europe portfolio
Labatt key for InBev in North America
AmBev brands make up the bulk of the Latin American portfolio
Company boasts some Asia-Pacific brands and distributes other brands under licence
6.2 NEW PRODUCT DEVELOPMENT
InBev focuses on extending key brands
Brahma is given a global roll out, whilst Stella Artois and Beck’s see increased exposure
Castlemaine XXXX and Boddingtons go extra cold, while new Jupiler and Leffe brands are introduced
Packaging development
6.3 CORE BRANDS
Antarctica
Table 8 AmBev: Antarctica Brand Shares in Beer 2000-2004
Table 9 InBev: Antarctica Brand Shares in Beer 2000-2004
Table 10 InBev: Antarctica Regional Shares by Sector 2004
Beck’s
Table 11 Interbrew NV SA: Beck’s Brand Shares in Beer 2000-2004
Table 12 InBev: Beck’s Brand Shares in Beer 2000-2004
Table 13 InBev: Beck’s Regional Shares by Sector 2004
Brahma
Table 14 AmBev: Brahma Brand Shares in Beer 2000-2004
Table 15 InBev: Brahma Brand Shares in Beer 2000-2004
Table 16 InBev: Brahma Regional Shares by Sector 2004
Skol
Table 17 AmBev: Skol Brand Shares in Beer 2000-2004
Table 18 InBev: Skol Brand Shares in Beer 2000-2004
Table 19 InBev: Skol Regional Shares by Sector 2004
Stella Artois
Table 20 Interbrew NV SA: Stella Artois Brand Shares in Beer 2000-2004
Table 21 InBev: Stella Artois Brand Shares in Beer 2000-2004
Table 22 InBev: Stella Artois Regional Shares by Sector 2004
7. INBEV BEER STRATEGIC EVALUATION
7.1 INBEV SECTOR POTENTIAL
Western Europe offers scant potential and many challenges
Premium imported lager holds the key in Latin America
Robust outlook for Eastern European beer; stellar growth expected in Russia
Tough times ahead in North America; much potential in Asia-Pacific
South Africa and Nigeria are key markets in Africa; premium imported lager is the best bet in Australia
Table 23 InBev: World Sales Performance of Key Sectors of Involvement 2005
7.2 SWOT ANALYSIS
Strengths
Weaknesses
Opportunities
Threats
7.3 FUTURE PROSPECTS FOR BEER BUSINESS
InBev is in good health and looks well set to lead global beer sales going forward
Ochokavo and Mohan Meakin offer opportunities for further emerging growth
Expansion of Stella Artois to maintain InBev’s upper hand in Latin America
Upper-mainstream launches to protect InBev from the storm brewing in Western Europe
Heineken poses a threat in Russia, whilst SABMiller and FEMSA could cause problems in Brazil
Three-way major merger would put InBev’s pole position under pressure
8. APPENDICES
8.1 APPENDIX 1 – INBEV BRAND PORTFOLIO
Summary 3 InBev: Beer Brands 2004
8.2 APPENDIX 2 – SUBSIDIARIES AND AFFILIATES OF INBEV
Summary 4 InBev: Subsidiaries 2004
8.3 APPENDIX 3 – WEBSITES OF INBEV
Summary 5 InBev: Websites
8.4 APPENDIX 4 – HISTORY AND CORPORATE DEVELOPMENT
Summary 6 InBev: Historical Development
8.5 APPENDIX 5 – COMPANY LOCATIONS
Summary 7 InBev: Company Locations