Blog: Big is beautiful
Chris Brook-Carter | 31 August 2004
With a new name – InBev - and a new board, the world’s largest brewer was finally unveiled to the market over the weekend, and it appears to be hitting the ground running.
Late on Friday, shareholders in Belgian brewer Interbrew voted 100% in favour of a merger with Brazil’s AmBev. AmBev shareholders approved the deal later at a meeting in Brazil. By Monday a new board was announced, which includes CEO John Brock who has indicated that the company is not satisfied with being the number one brewer by volume.
Brock said Friday that a main focus of InBev will be to increase its profit margin to 30% from 25%.
Anheuser-Busch is still the world’s number one in terms of revenue and has a profit margin of 28%. “We’d like to beat them,” said Brock. “We think we can reach that 30% target over the next few years.”
But Brock has also hinted that the company’s expansion aspirations are far from over. Not only has he said that InBev has enough cash to buy a market-leading brewer, but he has also warned the industry that he wants the company to grow organically in the markets where it already has a presence.
It would be foolish to bet against InBev going after these goals in the aggressive manner that has become Interbrew’s hallmark. Although Interbrew has had its doubters in the past who have criticised the company for what they see as a ‘gung-ho’ acquisition policy, few can argue with the fact that, in the space of a decade, the Belgian family-owned brewer has gone from the world’s number 17, in terms of volume, to number one.
For those people looking to the Red Planet as shining utopia away from all things earth, look away now....
Bacardi's 42 Below vodka brand has found a novel way to use the lemons left over from cocktail-making: Turn them into liquid soap....
Philadelphia’s soda tax came into force on Sunday, and is reportedly causing a stir in the city's check-out aisles....
Earlier this month, I was most-kindly invited by Accolade Wines to visit the Royal Albert Hall in London. The reason? They wanted to see a tennis great in action, and then give them a guided tour thro...
- Most Valuable Spirits Brands in 2017 - The facts
- Most Valuable Beer Brands in 2017 - The facts
- Has the politics of M&A changed? - Analysis
- IAADFS Duty Free Show of the Americas - Preview
- What the future looks like for Australian wine
- Coca-Cola Co announces senior executive shake-up
- Heineken sees Tesco pull SKUs in UK
- Baijius brand value overtakes whisk(e)y - figures
- Heineken releases colour-change bottles
- Diageo's Captain Morgan LocoNut - NPD
- Central and East Europe Report Package
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Global vodka insights - market forecasts, product innovation and consumer trends
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Global liqueurs insights - market forecasts, product innovation and consumer trends research