InBev
Encyclopedia
InBev is a subsidiary of Anheuser-Busch InBev
. The company existed independently for several years - since the merger between Interbrew
and AmBev
and until the acquisition of Anheuser-Busch
. InBev has operations in over 30 countries and sales in over 130 countries. In 2006, it had a market capitalization of €30.6 billion and net profit of €3.2 billion on sales of €13.3 billion.
On July 13, 2008, InBev agreed to buy Anheuser-Busch
for a total value of $52 billion, which would create a new company to be named Anheuser-Busch InBev. It was reported that Anheuser will get two seats on the combined board. To obtain antitrust
approval in the United States, InBev agreed to divest itself of the company that imports Labatt's beer, another InBev brand, into the United States; this transaction was completed on March 13, 2009.
The all-cash agreement, for $70 per share, or almost $52 billion, would create the world's largest brewer, uniting the maker of Budweiser
and Michelob with the producer of Stella Artois
, Bass
and Brahma
. The two companies would have yearly sales of more than $36.4 billion, surpassing the current number one brewer, London based SABMiller
.
was the largest, followed by SABMiller
in second place. Heineken International was in fourth place and AmBev was the world's fifth largest brewer.
when Brouwerij Artois was founded. Starting as early as the 1960s, the Artois brewery acquired several local breweries and hence consolidated its position in Belgium, until they expanded internationally by acquiring two Dutch breweries, Dommelsch
in 1968 and Hengelo Bier
in 1974. Finally in 1987, Artois and the Walloon-based brewer Piedboeuf, came together to form Interbrew . The move onto the global scene only happened when Interbrew acquired the Canadian beer brand Labatt. The transaction also included Labatt's sports-related assets, namely the Toronto Blue Jays
baseball club, the Toronto Argonauts
football club, and The Sports Network
. At the time, Labatt was not much smaller than Interbrew, and since then the company has been considered a multinational with both Canadian and Belgian roots.
Some important Interbrew brands are Tennents, Stella Artois
, Boddingtons
, Beck's
, Staropramen
, Jupiler
, Budweiser
, Leffe
, Labatt, Hoegaarden and Bass
.
In December 2001 Interbrew, Danone (former owner of Kronenbourg
, and two other smaller brewers) were fined €91m for operating a cartel
in Belgium
while four Luxembourg companies were fined €448,000 the same month.
, which resulted in huge protests and great disappointment in the town of Hoegaarden. The beer, though, is made with a very special yeast
that is difficult to cultivate and keep alive. The Jupille
-based brewery proved not being capable of attaining desired levels of quality and InBev's sole alternative was to bring production back to the original Hoegaarden-brewery, causing great sarcasm in the media that, by that time, had become openly hostile towards the beer-giant. In September 2007 however, it was announced that brewing would continue at the Hoegaarden Brewery in Hoegaarden.
On June 12, 2008, InBev announced that it made a US$46 billion offer for the brewing firm Anheuser-Busch. This merger joined two of the world's four largest brewing companies (based on revenue) and created a company that brews three of the top beers in the world - Bud Light, Budweiser and Skol
. InBev also stated that the merger would not result in any U.S. brewery closures and they would also attempt to keep on management and board members from both companies.
On Sunday, July 13, 2008, Anheuser-Busch announced that they had agreed to an acquisition by InBev valued at about US$52 billion in cash, or $70 per share. As a condition, InBev will be renamed Anheuser-Busch InBev and Anheuser-Busch would retain two seats on the board of directors.
is the current chief executive officer
. Brito replaced John Brock at the end of 2005.
InBev's current Board of Directors include Allan Chapin, Carlos Alberto da Veiga Sicupira, Arnoud de Pret Roose de Calesberg
, Jean-Luc Dehaene
, Philippe de Spoelberch
, Jorge Paulo Lemann
, Roberto Moses Thompson Motta, Kees J. Storm, and Peter Harf (chairman of the Board).
InBev's operations in the UK began in 2000 when Interbrew acquired Tennent Caledonian Breweries and Whitbread PLC. The Western Europe Zone President is Alain Beyens.
InBev UK holds the number 3 market position in the UK with a 16.9% market share. 10.8 million hectolitres of beer are produced at three breweries - Magor in Wales, Samlesbury in England, and Stag in Mortlake
, London. In August 2009 it was announced that Irish drinks company C&C had agreed to purchase Tennents for £180m, a deal which included the Wellpark brewery.
, Brahma
, Beck's
and Leffe
.
Anheuser-Busch InBev
Anheuser-Busch InBev N.V. is a Belgian-Brazilian publicly-traded company, based in Leuven, Belgium. It is the largest global brewer with nearly 25% global market share and one of the world's top five consumer products companies by EBITA....
. The company existed independently for several years - since the merger between Interbrew
Interbrew
Interbrew was a large Belgium-based brewing company which owned many internationally known beers, as well as some smaller local beers. In 2004 Interbrew merged with Brazilian brewer AmBev to form InBev, which is the now largest brewer in the world by volume, with a 13% global market share now...
and AmBev
AmBev
Ambev formally Companhia de Bebidas das Américas is a subsidiary of global brewing company Anheuser-Busch InBev and is the biggest brewery in South America and the fifth in the world...
and until the acquisition of Anheuser-Busch
Anheuser-Busch
Anheuser-Busch Companies, Inc. , is an American brewing company. The company operates 12 breweries in the United States and 18 in other countries. It was, until December 2009, also one of America's largest theme park operators; operating ten theme parks across the United States through the...
. InBev has operations in over 30 countries and sales in over 130 countries. In 2006, it had a market capitalization of €30.6 billion and net profit of €3.2 billion on sales of €13.3 billion.
On July 13, 2008, InBev agreed to buy Anheuser-Busch
Anheuser-Busch
Anheuser-Busch Companies, Inc. , is an American brewing company. The company operates 12 breweries in the United States and 18 in other countries. It was, until December 2009, also one of America's largest theme park operators; operating ten theme parks across the United States through the...
for a total value of $52 billion, which would create a new company to be named Anheuser-Busch InBev. It was reported that Anheuser will get two seats on the combined board. To obtain antitrust
Antitrust
The United States antitrust law is a body of laws that prohibits anti-competitive behavior and unfair business practices. Antitrust laws are intended to encourage competition in the marketplace. These competition laws make illegal certain practices deemed to hurt businesses or consumers or both,...
approval in the United States, InBev agreed to divest itself of the company that imports Labatt's beer, another InBev brand, into the United States; this transaction was completed on March 13, 2009.
The all-cash agreement, for $70 per share, or almost $52 billion, would create the world's largest brewer, uniting the maker of Budweiser
Budweiser (Anheuser-Busch)
Budweiser is a 5.0% abv American-style lager introduced in 1876 by Adolphus Busch and one of the highest selling beers in the United States. It is made with up to 30% rice in addition to hops and barley malt. Budweiser is produced in various breweries located around the world...
and Michelob with the producer of Stella Artois
Stella Artois
Stella Artois is a 5% ABV lager brewed in Leuven, Belgium since 1926. In the UK, Canada and New Zealand a 4% ABV version is also available.-Production:...
, Bass
Bass (beer)
The Bass Brewery was founded as a brewery in 1777 by William Bass in Burton upon Trent, England. The main brand was Bass Pale Ale, which was once the highest selling beer in the UK...
and Brahma
Brahma (beer)
Brahma is a Brazilian beer, originally made by the Companhia Cervejaria Brahma which was founded in 1888. The brands are now owned by Anheuser–Busch InBev, formed by a merger between Anheuser–Busch and InBev...
. The two companies would have yearly sales of more than $36.4 billion, surpassing the current number one brewer, London based SABMiller
SABMiller
SABMiller plc is a global brewing and bottling company headquartered in London, United Kingdom. It is the world's second-largest brewing company measured by revenues and is also a major bottler of Coca-Cola. Its brands include Grolsch, Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell...
.
History
InBev was created in 2004 from the merger of the Belgian company Interbrew and the Brazilian company AmBev. Before the merger with Ambev, Interbrew was the third largest brewing company in the world by volume, Anheuser-BuschAnheuser-Busch
Anheuser-Busch Companies, Inc. , is an American brewing company. The company operates 12 breweries in the United States and 18 in other countries. It was, until December 2009, also one of America's largest theme park operators; operating ten theme parks across the United States through the...
was the largest, followed by SABMiller
SABMiller
SABMiller plc is a global brewing and bottling company headquartered in London, United Kingdom. It is the world's second-largest brewing company measured by revenues and is also a major bottler of Coca-Cola. Its brands include Grolsch, Miller Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell...
in second place. Heineken International was in fourth place and AmBev was the world's fifth largest brewer.
Interbrew
Interbrew's roots can be traced back to 1366 in Den Horen in LeuvenLeuven
Leuven is the capital of the province of Flemish Brabant in the Flemish Region, Belgium...
when Brouwerij Artois was founded. Starting as early as the 1960s, the Artois brewery acquired several local breweries and hence consolidated its position in Belgium, until they expanded internationally by acquiring two Dutch breweries, Dommelsch
Dommelsch
Dommelsche Bierbrouwerij is a brewery in Dommelen, Netherlands. It was founded in 1744. Dommelsch is owned by Anheuser–Busch InBev.-Beers:The main product is Dommelsch Pilsener, although the brewery also produces beers under the Albert Heijn brand....
in 1968 and Hengelo Bier
Hengelo Bier
Hengelo Bier is a historical Dutch beer brand brewed by the Hengelosche Bierbrouwerij, a brewery that was located in Hengelo at the heart of the Twente region in the Netherlands. The brand had disappeared in 1988 after its owner Stella Artois lost a major supermarket contract and decided to...
in 1974. Finally in 1987, Artois and the Walloon-based brewer Piedboeuf, came together to form Interbrew . The move onto the global scene only happened when Interbrew acquired the Canadian beer brand Labatt. The transaction also included Labatt's sports-related assets, namely the Toronto Blue Jays
Toronto Blue Jays
The Toronto Blue Jays are a professional baseball team located in Toronto, Ontario, Canada. The Blue Jays are a member of the Eastern Division of Major League Baseball 's American League ....
baseball club, the Toronto Argonauts
Toronto Argonauts
The Toronto Argonauts are a professional Canadian football team competing in the East Division of the Canadian Football League. The Toronto, Ontario based team was founded in 1873 and is one of the oldest existing professional sports teams in North America, after the Chicago Cubs and the Atlanta...
football club, and The Sports Network
The Sports Network
The Sports Network, commonly abbreviated as TSN, is a Canadian English language Category C specialty channel and is Canada's leading English language sports TV channel. TSN premiered in 1984, in the first group of Canadian specialty cable channels...
. At the time, Labatt was not much smaller than Interbrew, and since then the company has been considered a multinational with both Canadian and Belgian roots.
Some important Interbrew brands are Tennents, Stella Artois
Stella Artois
Stella Artois is a 5% ABV lager brewed in Leuven, Belgium since 1926. In the UK, Canada and New Zealand a 4% ABV version is also available.-Production:...
, Boddingtons
Boddingtons
Boddingtons Bitter is a bitter ale originally brewed at the Strangeways Brewery, Manchester, England. It was promoted as The Cream of Manchester from the late 1980s until 2004, when the Strangeways brewery was closed and production moved to Magor, South Wales and Salmesbury, Lancashire...
, Beck's
Beck's
Brauerei Beck & Co is a German brewery in the north German city of Bremen. Owned by local families until February 2002, it was then sold to Interbrew for 1.8 billion euros. The brewery was formed under the name Kaiserbrauerei Beck & May o.H.G. in 1873 by Lüder Rutenberg, Heinrich Beck and Thomas...
, Staropramen
Staropramen
Staropramen Brewery is the second largest brewery in the Czech Republic, situated in the Smíchov district of Prague. It was founded in 1869 and the brand name Staropramen, literally meaning “old spring,” was registered in 1911...
, Jupiler
Jupiler
Piedboeuf Brewery is a brewery based in Jupille-sur-Meuse, Belgium. It is owned by Anheuser–Busch InBev. The main brand is Jupiler, the most popular beer and best selling beer in Belgium.-Variety:...
, Budweiser
Budweiser
Budweiser is a German adjective describing something or someone from the city of České Budějovice in Southern Bohemia, Czech Republic.Beer brewing in České Budějovice dates back to the 13th century...
, Leffe
Leffe
Leffe is a beer brand owned by InBev Belgium, the European operating arm of the global Anheuser–Busch InBev brewery giant. There are several beers in the range, and they are marketed as Abbey beers. They are brewed in large quantities and are widely distributed.-History:The abbey was founded in...
, Labatt, Hoegaarden and Bass
Bass (beer)
The Bass Brewery was founded as a brewery in 1777 by William Bass in Burton upon Trent, England. The main brand was Bass Pale Ale, which was once the highest selling beer in the UK...
.
In December 2001 Interbrew, Danone (former owner of Kronenbourg
Kronenbourg
Kronenbourg Brewery is a brewery founded in 1664 by Geronimus Hatt in Strasbourg, France as the Hatt Brewery. The name comes from the area where the brewery relocated in 1850. The company is owned by the Carlsberg Group...
, and two other smaller brewers) were fined €91m for operating a cartel
Cartel
A cartel is a formal agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products...
in Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
while four Luxembourg companies were fined €448,000 the same month.
AmBev
AmBev was a Brazilian beer company formed by a merger in 1999 between the Brahma and Antarctica breweries. It had a dominant position in South America.Post-merger history
InBev announced in 2005 and confirmed in 2006 that it would move the brewing of Hoegaarden, whose brewery they found to have become obsolete, to the Piedboeuf brewery in JupilleJupille
Jupille is a former Belgian municipality. It is now a part of the city of Liège.Jupille is the location of the brewery Piedbœuf , where Jupiler is made. It is also the death place of Pepin of Herstal...
, which resulted in huge protests and great disappointment in the town of Hoegaarden. The beer, though, is made with a very special yeast
Yeast
Yeasts are eukaryotic micro-organisms classified in the kingdom Fungi, with 1,500 species currently described estimated to be only 1% of all fungal species. Most reproduce asexually by mitosis, and many do so by an asymmetric division process called budding...
that is difficult to cultivate and keep alive. The Jupille
Jupille
Jupille is a former Belgian municipality. It is now a part of the city of Liège.Jupille is the location of the brewery Piedbœuf , where Jupiler is made. It is also the death place of Pepin of Herstal...
-based brewery proved not being capable of attaining desired levels of quality and InBev's sole alternative was to bring production back to the original Hoegaarden-brewery, causing great sarcasm in the media that, by that time, had become openly hostile towards the beer-giant. In September 2007 however, it was announced that brewing would continue at the Hoegaarden Brewery in Hoegaarden.
On June 12, 2008, InBev announced that it made a US$46 billion offer for the brewing firm Anheuser-Busch. This merger joined two of the world's four largest brewing companies (based on revenue) and created a company that brews three of the top beers in the world - Bud Light, Budweiser and Skol
Skol
Skol was initially created to be a global beer brand. Allied Breweries , Labatt , Pripps-Bryggerierna and Unibra formed a new company called Skol International in 1964. Its aim was the creation of a world-wide beer brand, Skol, which could be licensed, manufactured and marketed across the world...
. InBev also stated that the merger would not result in any U.S. brewery closures and they would also attempt to keep on management and board members from both companies.
On Sunday, July 13, 2008, Anheuser-Busch announced that they had agreed to an acquisition by InBev valued at about US$52 billion in cash, or $70 per share. As a condition, InBev will be renamed Anheuser-Busch InBev and Anheuser-Busch would retain two seats on the board of directors.
Corporate governance
Brazilian Carlos BritoCarlos Brito (businessman)
Carlos Brito is the inaugural CEO of the current no. 1 brewer, Anheuser-Busch InBev.-Biography:Born in Rio de Janeiro, he holds a degree in Mechanical Engineering from the Federal University of Rio de Janeiro, and an MBA from Stanford University business school.Brito has worked for Shell Oil and...
is the current chief executive officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
. Brito replaced John Brock at the end of 2005.
InBev's current Board of Directors include Allan Chapin, Carlos Alberto da Veiga Sicupira, Arnoud de Pret Roose de Calesberg
Arnoud de Pret de Calesberg
Arnoud de Pret de Calesberg is a Belgian businessman. He is a member of board of the international brewery InBev, Delhaize, Umicore and of Euronext-NYSE...
, Jean-Luc Dehaene
Jean-Luc Dehaene
-Early life and political career:He was born in Montpellier, France, when his parents were fleeing German troops. He got into politics through the Algemeen Christelijk Werknemersverbond , a trade union which was closely linked to the Christelijke Volkspartij .In 1981, he became Minister of Social...
, Philippe de Spoelberch
Philippe de Spoelberch
Viscount Philippe de Spoelberch is a Belgian businessman. He is a member of the board of the brewery InBev one of the biggest beweries in the world and of the InBev-Baillet Latour Fund. With an estimated fortune of 3.126 billion euro he is one of the wealthiest people of Belgium.-Source:* * *...
, Jorge Paulo Lemann
Jorge Paulo Lemann
Jorge Paulo Lemann is the third wealthiest individual in Brazil. He is ranked as the 55th richest person in the world by Forbes, with an estimated net worth of as of September 2011.-Biography:...
, Roberto Moses Thompson Motta, Kees J. Storm, and Peter Harf (chairman of the Board).
Organization
InBev is a global company which divides operations into five zones - North America, Latin America, Western Europe, Central & Eastern Europe, and Asia Pacific. In addition there is a Global Exports/Licenses section which comes under the responsibility of the central international department.Western Europe
The Western Europe zone has 16 brewing plants producing 36.1 million hectolitres. The trading companies are InBev Belgium, InBev France, Brasseries de Luxembourg, Mousel-Diekirch SA, InBev Nederland, InBev UK, InBev Germany and InBev Italia.InBev's operations in the UK began in 2000 when Interbrew acquired Tennent Caledonian Breweries and Whitbread PLC. The Western Europe Zone President is Alain Beyens.
InBev UK holds the number 3 market position in the UK with a 16.9% market share. 10.8 million hectolitres of beer are produced at three breweries - Magor in Wales, Samlesbury in England, and Stag in Mortlake
Mortlake
Mortlake is a district of London, England and part of the London Borough of Richmond upon Thames. It is on the south bank of the River Thames between Kew and Barnes with East Sheen inland to the south. Mortlake was part of Surrey until 1965.-History:...
, London. In August 2009 it was announced that Irish drinks company C&C had agreed to purchase Tennents for £180m, a deal which included the Wellpark brewery.
Brands
InBev has over 200 beer brands produced and sold throughout the world. The flagship brands are Stella ArtoisStella Artois
Stella Artois is a 5% ABV lager brewed in Leuven, Belgium since 1926. In the UK, Canada and New Zealand a 4% ABV version is also available.-Production:...
, Brahma
Brahma (beer)
Brahma is a Brazilian beer, originally made by the Companhia Cervejaria Brahma which was founded in 1888. The brands are now owned by Anheuser–Busch InBev, formed by a merger between Anheuser–Busch and InBev...
, Beck's
Beck's
Brauerei Beck & Co is a German brewery in the north German city of Bremen. Owned by local families until February 2002, it was then sold to Interbrew for 1.8 billion euros. The brewery was formed under the name Kaiserbrauerei Beck & May o.H.G. in 1873 by Lüder Rutenberg, Heinrich Beck and Thomas...
and Leffe
Leffe
Leffe is a beer brand owned by InBev Belgium, the European operating arm of the global Anheuser–Busch InBev brewery giant. There are several beers in the range, and they are marketed as Abbey beers. They are brewed in large quantities and are widely distributed.-History:The abbey was founded in...
.
See also
- InBev-Baillet Latour Fund
- Paul De KeersmaekerPaul De KeersmaekerPaul, Baron De Keersmaeker is a Belgian businessman and politician and Chairman of PA Europe .-Education:De Keersmaeker obtained a PhD degree of Law and a BA degree of notary at the Katholieke Universiteit Leuven .-Career:...
- Alexandre VandammeAlexandre VandammeAlexandre Vandamme is a Belgian businessman. He is one of the Directors of the international brewery group InBev since 1992. At InBev, he held various operational positions, including Head of Corporate Planning and Strategy. He is also a Director of Patri SA...
- Anheuser-BuschAnheuser-BuschAnheuser-Busch Companies, Inc. , is an American brewing company. The company operates 12 breweries in the United States and 18 in other countries. It was, until December 2009, also one of America's largest theme park operators; operating ten theme parks across the United States through the...