Anheuser-Busch first got its start in 1860 when Eberhard Anheuser bought the struggling Bavarian Brewery in St. Louis, Missouri. Eberhard lacked the experience in the brewing industry, but luckily, his son-in-law Adolphus Busch was a young brewery supplier with great knowledge in the brewing industry. In 1864 Adolphus and Eberhard became partners and started to brew a variety of beers to satisfy the tastes of a growing and diverse nation. This small brewery soon grew into a great brewing empire that we now know today as Anheuser-Busch.
The early years of the company were very demanding, but Adolphus Busch had the determination to make his company succeed. Anheuser-Busch got its first great taste of success in 1876 when the world’s most popular beer and America’s first national beer brand Budweiser was introduced. Ever since Anheuser-Busch was formed, the American people have always been drawn to it. This can be contributed to the fact that Anheuser-Busch represents the American people, they are known for being very hard working, having a lot of determination, and most importantly being family oriented.
Ever since the start of the company in 1864, a family member has overseen the company. Since its founding more than 150 years ago, Anheuser-Busch has been a leader in the beer industry. With nearly 50 percent of the U. S. domestic market share, and with more than 40 brands and 12 breweries strategically located throughout the United States, Anheuser-Busch has the resources in place to enhance beer industry volume, while continuing to meet the changing needs of today’s consumers. Anheuser-Busch is well known for being the life of the party, and this doesn’t just mean alcoholic drinks.
Anheuser-Busch operates nine theme parks including Busch Gardens, Discovery Cove, and SeaWorld. Anheuser-Busch also plays a huge role in sporting events. They sponsor twenty-six Major League Baseball teams, and even have a stadium that is home to the St. Louis Cardinals. Anheuser-Busch has set a standard not only for breweries but for successful companies in general. Their hard work, determination, and work in the community makes them a role model for any company. The essence of this paper is to show the dominance of the Anheuser-Bush company in the alcohol industry.
It will show how Anheuser-Bush is run and all of the elements that goes into running a successful company. Information from the internet, the Anheuser-Bush annual report, and other informational contacts will be used to fully examine the process in which the Anheuser-Bush franchise is operated. Anheuser-Busch is a public company with its headquarters in St Louis Missouri. In the fortune 500 list in the category for just beverages alone, Anheuser-Busch ranked an impressive 3rd place to Coca-Cola and Coca-Cola Enterprises. CNN website) After experiencing some minor set backs in 2005 Anheuser is taking immediate action to improve areas that are in need of improvement. They are being inventive and creative in coming up with different products, as well as working on better design for packaging. In order to continue to be better then there competitors, they dropped their prices. They made some adjustments in advertisement of their key brands, as well as increasing productivity at the breweries, with a staggering 100 million dollar increase.
An interesting move from the management team, corporate employees in the U. S. did not receive bonuses in 05 to reduce their costs (pg. 5 Anheuser-Busch). To continue to remain innovative and competitive, in 05 Anheuser produced over 200 different labels and packaging for their products. Also AB lowered their prices on their different beer brands to stay affordable to consumers and still be competitive with their opponents. What was a disadvantage to Anheuser was strategically turned around to be a benefit to the company.
With the cost of energy increasing, it meant more money had to go towards the packaging process, but quickly this was seen as an opportunity to promote the recycling of cans. More aluminum cans were recycled then the amount of resources needed for beer, so they were able to continue production at a low cost by recycling cans. It actually sparked a new way to make cans using less material, and it’s known as “lid of the future” (2005, Anheuser-Busch Annual Report, pg 7) They own a recycling company called Anheuser-Busch Recycling Corporation, and it is one of the leaders in the recycling cans business.
With this recycling movement, and “lid of the future” under their name, they are able to grow financially in a way that they wouldn’t have been able to, at the same time, they are being socially responsible, and helping the environment. (2005, Anheuser-Busch, pg 21) This is a great move for a large company like this, because now more than ever do we need to protect and help the environment, and if a fortune 500 company can promote social responsibility, then it can only assist in the movement of “Stop Global Warming”.
Anheuser-Busch came up with two goals to continue to promote and progress in the beer industry in the U. S for this year. The first is to continue to grow in the beer industry, and the second is for Anheuser’s brands to become the drink of choice, over its competitors to consumers. The reason AB wants to focus mainly on its beer brands, and not its hard liquors, is because “Beer represents 57 percent of all alcohol beverage servings. ” (2005, Anheuser-Busch, pg 6) This is an interesting and smart move for AB to take note of.
With more than sixty different variety’s of beer, and because AB owns roughly half of the beers that are sold and distributed in the United States, it only makes sense to push advertising, packaging, and new ideas in the beer market. By Anheuser continuing to spend money on advertising, new packaging, and new products not just beer, but hard liquor as well, the likely hood of Anheuser’s products being the drink of choice is more than likely. AB is doing just that, because although it recognizes how important it is for them to focus on their beer products, they can’t just forget about the hard liquor products they make.
They are adding taste to their hard liquors, making new labels and packages, and creating new products. Also Anheuser is trying to focus on making the image of beer be represented in a more positive light. One of the reasons beer is more popular in the alcohol business is because it has a lower percentage of alcohol per volume, so consumers tend to lean towards beer than other alcoholic beverages when entertaining. Recent studies showed that moderate drinking can actually be beneficial to ones health, so AB will try to promote beer drinking in a more positive light, to entice consumers to buy their products.
Anheuser-Busch is keen on educating and promoting responsible drinking to the world. Last year two very important landmarks were made. It was the 20th anniversary of promoting responsible drinking to the public through television advertisement, as well as reaching $500 million dollars in promoting and educating the public to drink responsibly, fight drunk driving, and stop underage drinking. This started twenty one years ago when Anheuser coined the phrase “know when to say when”. (2005, Anheuser-Busch, pg 7) They onsider themselves leaders in the alcoholic beverage market, not just in sales, and quality, but also in educating the public, and promoting responsibility. Anheuser has also considered supporting the community as an intricate part of who they are, and what they stand for. With the two major disasters in the United States of the past few years, with Hurricane Katrina as one of them, AB’s breweries and packaging company quickly came together to give 9. 4 million cans of drinking water to help all of those who suffered from the disaster.
This was not the only disaster that they came together to help those in need. Anheuser has distributed over 59 million cans of water to the needy. (2005, Anheuser-Busch, pg 7) The employees of AB as well as the distributors contributed 3. 8 million dollars to the Red Cross to help the Katrina Victims, and Sea World gave temporary housing to animals when the storm ran its course. Outside the U. S. when there was a disaster in China, the company supplied the people in the disaster with 35,000 cases of water. Some of the leader ship styles would be that Anheuser-Busch stays on top f making sure that they are providing the correct marketing and sales tools to the retailers and wholesalers around the country. The company makes it apparent to the people that they want to focus on their product and how their packaging innovation is done.
One of the ways that Anheuser-Busch improved their sales is that the company came up with “ambassadors” for the brewing and marketing areas. What the “ambassadors” do is that they meet up with the owners, consumers, and some of the other staff to help sell Anheuser-Busch products in key businesses around the country. They ake sure that the products are up to date and are the new that is making costumers buy the product. With this process going on it allows the company to become more hands on in the selling area and lets them know what the consumer really wants. With the company having 12 breweries in the United States it gives them advantages in the freshness and flexibility in their beer. With this advantage their beer is always two weeks fresher then any of the other beers making them one of the leaders within their competing breweries. This advantage helps out with advertising the beer product.
Since Anheuser- Busch is a well known name and big enough this allows them to be a leading company when it comes to promoting their product to people, including major sports marketing and media. With all of these actions going well for them it shows that they are able to set high standards for themselves. It shows that they are the type of company that wants to have a leading type of name. They want to be the best. With sales to retailers increasing as time progresses they have to keep up. Obviously they are able to keep up with the hanges within the business and are able to stay on top of their game. They stay on top of their leadership within the global brewery business. In the United States, beer is the most consumed alcoholic drink. 57 % of the alcoholic drinks that are served are different types of beer. With this type of percentage Anheuser-Busch wants to keep that rate going. They want to be able to provide a costumer a great tasting beer so that one can enjoy themselves and have a good time, as safely as they can. The two best selling beers in the world is from Anheuser-Busch, and they want to keep it like that.
Their plan is to keep coming out with great tasting alcoholic drinks for the people to have and enjoy. Since people already love what they are drinking from them their product is just going to keep spreading around which will obviously improve the sales income. This allows them to even do more within their company to make it better and to make it more known to people outside of the United States. The goals of Anheuser-Busch are plain and simple. All it is, is that they want to be able to create the top choice of an alcoholic drink to pick from when they go out and have a good ime. The company is all about the passion and the innovation of their drinks. The company looks out for the type of materials they are using for cans and such, what they need to do to make whatever it is better, who drinks their products, and ways of not only improving their company but also improving the buyers mind set about Anheuser-Busch and the product being produced. Anheuser-Busch has had tremendous success in motivating people around the world to use their products and facilities through the use of advertisements, sponsorships, and new attractions at their theme parks.
Advertisements for Anheuser-Busch products are shown all around the world endorsing its wide selection of beverages. New attractions at Anheuser-Busch’s nine theme parks draw in millions of U. S. customers to witness innovation in family entertainment. Anheuser-Busch’s Anheuser-Busch also sponsors many different athletic organizations around the world, including many teams in the National Hockey League, the National Basketball Association, the National Football League, and the F. A. Premier League. Anheuser-Busch’s proficient use of advertising through the media has drawn the attention of consumers around the world for many years.
For the past eight years, consumers in the United States have voted that Bud Light commercials are the most creative and most anticipated commercials to view during the National Football League’s Super Bowl. Consumer polls have also shown that throughout the history of the Super Bowl, America’s most watched event, nearly half of the people that watch the event only watch to see the new beer commercials that are introduced. Anheuser-Busch commercials are not only popular in the United States, but in many countries around the world as well.
In 1994, celebrity Harrison Ford created quite a buzz when he appeared in a commercial for Kirin Beer, a Japanese brand of beer owned by Anheuser-Busch. Some of the most well known commercials released by Anheuser-Busch that swept through the homes of millions of Americans in the past decade include the series of Clydesdale commercials, the Budweiser Frogs, “Real American Heroes,” and the series of “Waazzup” commercials. Advertisements for Anheuser-Busch products are not only known for their comedic value, but some of the commercials have inspiring messages within them.
Recently, a commercial was released displaying the gratitude that Anheuser-Busch has for United States military troops serving in foreign countries. Anheuser-Busch has definitely found its niche for advertising their products to people around the world. Anheuser-Busch has a more family oriented side, as well. A subsidiary of Anheuser-Busch, the Busch Entertainment Corporation (BEC), operates the nine theme parks that are owned by the company. The BEC controls three different Sea World venues, two Busch Garden theme parks, Sesame Place, Water Country USA, and an Adventure Island.
The combination of these different venues makes the BEC the third largest theme park operator in the United States. The accumulative achievements of these venues raked in over $200 million in pretax profits on revenues over $1 billion. The record numbers that these theme parks are achieving can be accredited to their ability to create new and innovative attractions each year that appeal to audiences of all ages. The Busch Entertainment Corporation is creating new attractions at almost every venue that they operate.
At the Sea World venue in Orlando, the new dolphin show Blue Horizons was introduced and accepted with much praise. Also, all three of the Sea World locations are in the process of putting forth their new killer whale show “Believe,” which is said to be the most elaborate show of its kind in the history of Sea World. Busch Gardens has introduced two new rides, one at each of their locations, which have definitely turned the heads of their competitors. The attraction at the Busch Garden in Williamsburg opened a 3-D roller coaster, called Curse of DarKastle, which takes the passengers for a wild ride through a haunted castle.
Tampa Bay’s Busch Garden venue opened their roller coaster SheiKra, which is probably one of the most creative rides because it is the only coaster in North America that has a complete vertical dive. Innovations in Anheuser-Busch theme parks draw in millions of customers visit their family-oriented attractions. Sporting events around the world are sponsored by Anheuser-Busch and its products. In the United States, Anheuser-Busch holds sponsorships for over 100 professional sports teams. Anheuser-Busch sponsors 28 different teams in the National Football League and 26 different teams in Major League Baseball.
They are also major sponsors of the National Hockey League and the National Basketball Association. In the United Kingdom, Budweiser is a sponsor of the F. A. Premier League, the most renowned football/soccer league in the United Kingdom. Anheuser-Busch not only sponsors sporting teams and organizations, but they are also proud sponsors of events like the Winter Olympics and the FIFA World Cup of Soccer. Anheuser-Busch accomplishes teamwork through breweries in different countries contributing together to achieve the company’s goal of being number one in the alcohol industry.
Growing internationally has been a strong growth potential in Anheuser-Busch’s earnings per share growth and continues to produce at a double digit rate. The largest contributor to Anheuser-Busch’s international earnings is Mexico’s brewery Grupo Modelo. This brewery profits from the imported brands of alcohol Anheuser-Busch distributes into Mexico as well as benefiting from Corona being the leading import beer in the United States. The fastest growing beer market in the world settles in the country of China. In 2002 Anheuser-Busch created a union with Tsingtao, China’s largest brewery.
Budweiser and Tsingtao are the only two beer brands with national distribution in China. Wuhan and Tsingtao are the two major breweries that sold 148. 3 million barrels alone. Budweiser is sold in 10 countries including these two and brewed locally in every one. With the volume growth in China has been impressive the industry profit is far behind global standards. But high hopes await Anheuser-Busch and the company is perfect to benefit from the quickly rising Chinese beer industry. Between the three breweries Budweiser Wuhan, Harbin Brewery and Tsingtao, Anheuser-Busch ontinues to gain energy in the most important international market for beer. The efforts being put into Chinese breweries are mostly focused on three key areas. Consistently creating high-quality beer that meets Anheuser-Busch’s global standards, a strong marketing platform which includes advertising, sponsorships and music promotions, and the strong distribution system used in the United States is being installed throughout the world. Anheuser-Busch is a corporation that provides a broad range of services within different aspects of the corporation.
These special groups need to come together to create the final product. The different companies and services within the corporation include: Anheuser-Busch, Inc, the company’s brewing subsidiary, Anheuser-Busch International Inc. , the company’s international beer subsidiary, Busch Agricultural Resources Inc. which provides high quality brewing raw materials and services to Anheuser-Busch’s brewing operations, and Busch Media Group, Inc, who performs all media planning and buying for Anheuser-Busch’s advertising.
A great deal of effort and coordination within these groups is the way that a quality Anheuser-Busch product such as Budweiser can be found at any grocery or convenience store at a cheap price with attractive packaging. With teams located throughout the world and these three goals, Anheuser-Busch is striving to achieve their main objective of being the best alcohol distributor in the world. Anheuser-Busch is a global enterprise with distribution centers in the United Kingdom, Japan, Canada, and Spain.
Due to Anheuser-Busch’s global distribution, the company itself cannot represent only one single civilization. Since Anheuser-Busch is a global enterprise, there are many different cultures represented in their workforce. By embracing a diversified workforce, Anheuser-Busch promotes a great organization. Employees have self-motivated goals that are aligned with the company’s goals of the company, and without satisfied employees the company would not maximize its profits.
Anheuser-Busch actively supports numerous community programs sponsored by many different ethnic groups; they encourage the development of minority- and women-owned companies by purchasing $250 million in annual goods and services from those companies; and one of their core values is building a high-performing, diverse workforce. One of the main reasons that these four countries have a distribution center may be due to their culture. The people view beer as a favorable product that everyone should be able to enjoy, and one of the reasons the product is popular is because of that belief.
This provides an enormous market for not only Anheuser-Busch, but the beer industry as a whole. Anheuser-Busch’s organizational culture is to guide the behavior of its members in the organization through the company’s beliefs and values. For the most part the company is fairly tightly structured that looks to achieve being the number one beer company in the world by enriching and entertaining an increasing global audience, to deliver a substantial amount of 15% return to our shareholders by adding to life’s enjoyment through our products, services, and relationships and in addition their goal is to increase sales by 25% each year.
Most decisions that Anheuser-Busch face are driven by the status quo, but the number one ambition always remains the same. Anheuser-Busch values all of the goals they achieve throughout a year, but when everything is said and done they value being the number one beer company in the world. Risk taking is something all companies face. If someone wants something bad enough, you have to be able to risk everything in order to achieve that goal.
Anheuser-Busch isn’t satisfied with just being a beer company, in order for them to get people to drink their products and grow; they take risks such as inventing new alcoholic drinks and buy new family attractions. Big investments like these can put your company at a huge risk of losing a lot of money but if successful they can multiply the money the company makes by millions. This ultimately leads to accomplishing objectives set down the road. Empowerment is spread throughout the company so each individual can concentrate on a major area and Anheuser-Busch has all the tools needed to thrive.
Competition is what makes a business great. Presidents inside of the company make sure that everyone drives each other to do the best job they can which flows down throughout the organizational chart. Miller Lite is the outside competition that Anheuser-Busch uses as motivation to develop into the world’s best beer company. Anheuser-Busch’s competition both internal and external pushes them to drive harder in order to obtain being the most successful alcohol company in the world.