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06.27.2008 10:15 am

The uneasy partnership between InBev and A-B

St. Louis Post-Dispatch

One of the more interesting questions on this morning’s Anheuser-Busch conference call was about the company’s existing arrangement with InBev in the United States. A-B distributes many InBev brands, including Stella Artois and Beck’s, and they’ve been doing well. Both A-B and Inbev have mentioned that fact in their recent earnings reports.

So, how does an unsolicited takeover offer affect that profitable relationship? Anheuser-Busch CFO Randolph Baker called it “an obvious concern,” adding:

Obviously our wholesaler family is a bit disturbed by the recent news. We have to keep them focused on our brands and our commitment to the InBev brands. The InBev brands are currently growing by double digits. We are committed to the InBev brands, and this does not change that relationship.

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3 comments

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Excellent question Dave. How much of the growth is the product and how much of it is AB’s excellent supply chain and marketing teams? Hard to split those two groups apart I bet…

— Tim
3:25 pm June 27th, 2008

Interesting point of the value of AB’s US distributors to InBev. Even more interesting, and this was new news to me, was that in Brito’s full page ad in the Sunday Post Dispatch, he claimed that it was InBev’s Canadian distributors that made Bud # 1 in Canada. So who needs who more? If the industry growth is outside the US, then it would appear AB needs InBev to gain new global market share.

— John
7:04 pm July 1st, 2008

The answer to this whole mess is simple…If you are an American and a beer drinker who cares about being both, then drink A-B products and leave the Stella Artois and Beck’s for all the girlies in Europe and Canada.

— chris hrdlicka
12:36 pm July 2nd, 2008