Anheuser-Busch (Budweiser) update

Anheuser-Busch sells $47 billion worth of the liquid every year, boasting an absurdly high 24% profit margin and inspiring some of the strongest customer loyalty. In essence Anheuser-Busch is one of those massive companies that can do little wrong in the eyes of their investors.

The company divides its operations into 7 regions, the names of which are intended to be descriptive rather than geographically fastidious: North America, Mexico, Northern Latin America, Southern Latin America, Europe, Asia Pacific and Global Export & Holding Companies. The company’s North American region was responsible for 26% of total volume in 2014. We take it for granted that the region that includes the United States has to be Anheuser-Busch largest, right? Wrong. That would be Latin America North, at 27%. This includes Brazil, one of the combined company’s countries of origin. The Asia Pacific region follows at 18%. On a per-capita basis, no one drinks like Europeans do. Volume there accounted for 10% of the company total, followed by Mexico at 9%, and Latin America South at 8%.

In absolute terms, the 3 biggest markets in the world for Anheuser-Busch are the United States, Brazil, and in the number three spot, China. Other than alcohol, the company is also a bottler of G-rated beverages in many nations. For instance 7-Up and Pepsi in Uruguay, Brazil, Argentina and Peru. The company’s total non-beer volume was 11% in 2014.

Anheuser-Busch recently announced plans to buy SABMiller, the world’s second-largest brewer (brewing Miller, Foster’s, and many other recognized brands); thus increasing its market size further still. Following an update to their latest merger deal Nomura analysts stated on the 22nd Of January 2016 that despite some minor setbacks there now seems to be a high probability that the deal is taking place in the upcoming quarters. Furthermore such actions indicate the stability, as well as the financial promise of the organisation; thus one may speculate that the investor who runs with Anheuser-Busch stock is rarely disappointed, and is likely to remain satisfied for the foreseeable future.

This article was issued by Steve Diacono