Anheuser-Busch Global Sales
China Leads Growth In International Beer Revenues
America's largest brewer aggressively pursues China as the international beer market with the highest potential for future sales.
In recent years, spirit and wine makers like Diageo and Constellation Brands continue to gain market share from brewers. Highly concentrated and competitive, the U.S. beer industry faces low single-digit growth.
SAB Miller, Molson Coors and the largest U.S. brewer Anheuser-Busch dominate 90% of the American beer market.
Anheuser-Busch's many beer brands include Budweiser, Bud Light, Michelob, Michelob Honey Lager, Busch, Busch Ice and Bare Knuckle Stout. The company is particularly focused on international beer sales to expand its global trade footprint.
Global Beer Sales
Anheuser-Busch's beer products are sold in more than 80 countries and U.S. territories. The multinational beer giant now sells about 35% of its total beer volume outside the U.S.
Anheuser-Busch's total beer volume was 157 million barrels in 2006, up 5.6% from 2005. Domestic beer volume rose a paltry 1.2%.
International volume from Anheuser-Busch brands produced overseas plus exports from the company's U.S. breweries rose 9.3% to 23 million barrels for 2006. International volume via partnerships with foreign brewers grew near 20% to 32 million barrels, principally due to sales of Tsingtao brand in China and Modelo beer in Mexico.
International Growth Strategy Targets China
Anheuser-Busch's multinational beer strategy is simple: expand the Budweiser brand internationally while entering into strong partnerships with top beer makers across the globe.
During the past five years, the Chinese beer industry has expanded more than beer markets in Europe, North America and South America combined. Chinese per-capita beer consumption is only 50% of that in Japan and Korea, and only 20% of that in developed countries like the U.S. and Canada.
Chinese Brewery Acquisitions & Strategic Alliances
Anheuser-Busch became one of the first international beer makers in China when the company bought the Wuhan brewery in 1995. Since then, Wuhan's beer production has more than quadrupled to some 4 million barrels per year. Locally produced Budweiser and Harbin brands are distributed to clients in Hong Kong as well as in northern, eastern and southern China.
In 2004, Anheuser-Busch also acquired China's fifth-largest brewer, Harbin, in northern China where per capita beer consumption is double China's national average. Not only has Anheuser-Busch made Harbin's brands available throughout most of mainland China, the company has launched Harbin as an imported brand in the U.S. starting in 2006.
Anheuser-Busch also owns 27% of the Tsingtao Brewery, part of a key strategic alliance. The Tsingtao Brewery is China's largest domestic brewery and beer exporter.
Beer Distribution & Marketing In China
Anheuser-Busch distributes Budweiser across China through a dedicated network of almost 200 distributors, more than 70% of which sell Anheuser-Busch brands exclusively. The company's powerful beer marketing platform in China offers innovative advertising, top sports sponsorships and popular music promotions. For example, Budweiser is the official sponsor for both the 2008 Olympic Games in Beijing and China's Olympic Team.
Sources For This Article
This article presents independent calculations and insights based on data drawn from source material on anheuser-busch.com. This article focuses on Anheuser-Busch's 2005 annual report and its February 1, 2007 news release "Anheuser-Busch's Cos. Reports Increased Sales and Earnings for the Fourth Quarter and Full Year of 2006".
