St. Louis, A-B heritage are of little interest to Wall Street
The July 10th Post-Dispatch interview with Carlos Brito, the CEO of Inbev, is really business propaganda.
There is not much that can be done to prevent this deal from reaching the shareholders and most likely being approved. What is interesting is how naive Carlos Brito must think people are in this city. He is paying a very large amount of money to acquire a company that dominates a market which his company has little presence in. The U.S market is not a growing beer market. People in this country tend to be very loyal to the beer their drink, so it is unlikely Inbev brands would grow in the U.S. At the same time, it is unlikely AB brands would grow overseas without taking from Inbev brands. Inbev has seen market share declines in their brands and has only grown by acquiring other companies. Basically, how is Carlos going to generate a return on this investment? Only one way, cost cutting. I think people are naive if they think otherwise.
The entertainment complexes are gone, Grants Farm is likely gone or will no longer be free, and the most major cost AB has is marketing. Marketing has helped AB grow to the dominate power it has so cutting this is not without risk. Certainly executive and management ranks are going to be cut also. Who is Brito kidding if he says the presence in St. Louis will be anything close to what it is now when it is done?
But that is business. Anyone who puts money in a 401k is giving money to large institutions to invest as they see fit, and want returns quickly when they do. Why is it surprising that money talks in the business world especially for wall street? Good corporate citizens mean little if the stock doesn’t constantly grow. Carlos Brito knows this, and that is why he has to expand and why he will have to slash cost after he does. St. Louis is of little concern when it comes to pleasing major Wall Street institutions. That is the bottom line, any one who invest in retirement funds or the stock market knows this to be true.
Rick Dierker
Imperial
Exactly.
My question is this :
When all of the so-called “economists” crowed about a “Global Market” and a “Global Economy” while they shipped the beating heart of American industry and ingenuity overseas to be replaced by slave labor working for slave wages - what did you think they meant by a “Global Economy”?
Now you know.
America doesn’t make anything anymore. Hasn’t for almost a decade.
America doesn’t grow anything anymore. Most of the fruit and vegetables, a good deal of the meat you see at the grocery store is imported from other countries using slave labor working for slave wages.
Now you see the next step in the evolution of the Global Marketplace.
America doesn’t OWN anything anymore.
It’ll all be shilled to the highest bidder. That bidder is not going to be American. And as the American economy continues it’s slide into a full-on depression thanks to soulless speculation in the housing and energy markets the dollar will continue to degrade and foreign interests will be poised to buy it ALL using the money we paid to them instead of to hardworking Americans.
Now the Great American Beer is going to be owned by a foreign corporation, with foreign headquarters and foreign interests.
Enjoy that “Global Economy”. You’ve paid enough for it.
Mac
http://www.brownsludge.com
America doesn’t grow anything anymore?
I wish I was in the same dream world you’re in.
I have been reading the constant updates regarding the InBev purchase of Anheuser Busch with much horror. What I see is another European based behemoth trying to intimidate and bully an American company and employees by taking advantage of the low dollar to purchase this iconic AMERICAN brand.
The simple fact of the matter is that European companies and their executives do not know America. They do not know American tastes, culture and patriotism. Nor do they wish to know it. Look at the recent diversification of Chrysler by Daimler Benz and the recent astronomical losses Deutsche Post World Net/DHL America have suffered in the United States. You can make the argument that it was poor management by these two companies. However, their poor management was coupled by the fact that they didn’t know the United States, its markets or its people like they thought they did.
The net result was and will be thousands of American workers being laid off and the quality of the product sold being degraded. Budweiser will end up like Falstaff.
Additionally, it has to be said that the Busch family themselves are at fault here. Shame on them for allowing their ancestors company to become a takeover target. In losing their majority ownership of AB they have allowed this to happen. They have jeopardized the jobs of Americans in St. Louis, MO, Baldwinsville, NY, Cartersville, GA, Columbus, OH, Fairfield, CT, Fort Collins, CO, Houston, TX, Jacksonville, FL, Van Nuys, CA, Merrimack, NH, Newark, NJ and Williamsburg, VA.
Lastly, as a loyal “Bud” Consumer I would have to say that now that this acquisition is successful I will no longer purchase ANY Anheuser Busch product. My loyal tastes will remain with AMERICAN owned brands. I would also urge my fellow beer loving Americans to also stop purchasing their products as well. Support your local micro brews; petition your local Bars, Pubs and Restaurants to remove Bud products from their offerings. Contact other iconic AMERICAN owned brands like Yeungling (Americas Oldest Brewery) and Shiner to expand their coverage. Create a demand for American owned Brews!
After all today it’s AB tomorrow it may be Boeing, Lockheed or General Dynamics.
Thank God Carlos and the Boys from Brazil have come to the rescue. I was hoping I could get a cold Bud in the Ukraine and that small hut in Peru I always wanted to see. Sad ending for AB. I hope the best for all of their employees. John