Anheuser-Busch InBev made stronger through integration

InBev’s decision to merge with Anheuser-Busch has gained vindication with the announcement of £850m, ($1.28bn) profit in the last quarter of 2009.

The international brewing giant saw its revenues rise 3.7% to $9.3bn. The $1.28bn profit figure was in comparison with the $29m profit it made in the last quarter of 2008, when the integration process was not so far advanced.

Anheuser-Busch InBev was formed in 2008, when Belgian based InBev bought the largest brewer in the USA. The decision to incorporate the brewers of Budweiser with a European country caused controversy in the USA both locally and in Washington DC. There was also more controversy recently when InBev raised the issue of job cuts, in the cause of creating a more streamlined and robust operation. InBev’s Headquarters in Leuven, Belgium were the scene of protests by employees. AB InBev noted that even beer sales had not been insulated from the economic climate. The company said it sold some 2% less beer in the fourth quarter in the United States, but achieved higher prices and cut costs. In Brazil, it pushed its market share to 70%.

InBev says that the integration with Anheuser-Busch is now essentially complete. In addition to Budweiser, the merged company’s portfolio includes the traditional InBev brands of Stella, Hoegaarden, Leffe, Becks and others.

04 March 2010