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07.09.2008 4:52 pm

Do you believe Carlos Brito’s reassurances about Anheuser-Busch?

St. Louis Post-Dispatch

The chief executive of InBev, the Belgian brewer trying to acquire Anheuser-Busch, sat for for a one-on-one interview with the Post-Dispatch today. Among his claims: He respects the company, but thinks it could market Budweiser better.

This, by the way, is the brand that’s seen frogs, dogs, babes and horses grace its advertising and that seems ubiquitous at every sporting event known to mankind.

Carlos Brito said told us that the aquisition of A-B “is a natural next step in a relationship that stretches back 28 years,” according to our story. “The combined forces of Anheuser-Busch and InBev — the maker of Stella Artois and Beck’s — would unleash massive brewing firepower that could propel success in markets around the world, he said.”

Here’s a link to the full version of our Brito interview.

“I know a lot of the top guys, most of them for years,” Brito said of Anheuser-Busch’s top executives. “We love them, we respect them, we like what they did with the business and the brand.”

He said InBev can “do much more for Budweiser because we have the scale, the size, the knowledge” in dozens of markets around the world. InBev has breweries in 30 countries; by contrast, Anheuser-Busch is focused on the U.S., Mexico, Canada, China and the U.K.

“Look at Coke, look at McDonald’s, look at so many American brands that did so well internationally,” said Brito. “We believe Budweiser can be the next one.”

Do you think Brito is saying the right things to St. Louisans and — more importantly — A-B shareholders? Do you predict that A-B will be better off before or after a takeover by the worldwide brewer?

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247 comments

InBev’s record proves that Mr Brito has an unrealistic outlook on his own company. They are known for tearing companies apart to get to the bottom dollar. A-B’s marketing is the best I have ever seen, marketing is not a problem with A-B. It’s an American company and needs to stay an American company. WE ARE NOT FOR SALE!!!!!

— Maureen
6:07 pm July 9th, 2008

I have no choice but to believe it. My family’s livlihood depends on my salary. If he’s lying, we’re in a lot of trouble, and we’re not the only ones.

— WorksforAB
6:08 pm July 9th, 2008

I would not trust him to walk my dogs. In one breath he is trying to throw one lawsuit after another at AB - in the next breath he is trying to suck up to us in St. Louis. AB has left the offer open to an offer that truly represents the worth of the company. InBev has not responded to that instead trying to lay blame at AB’s door for lack of negotiation.

He is determined to replace the current board with his own hand picked PAID board members. Whose interest do you think they will be looking out for? As of right now, all he has on the table is a NON BINDING LETTER OF INTENT. It is NOT a tendered offer. At that point he could very well change the rules of the game and tender a lower offer. Then where will we be?

If you have independantly researched this company, you will see that he promises whatever you want to hear - only to change the rules to suit themselves. Sorry, they have promised EVERY company that they have acquired that they will keep the plants open, minimal disruption to production, minimal layoffs - ask the people at LaBatts in Canada or the people in Europe how those promises went.

He is a bully who is starting to show his desperation and how badly Inbev needs AB and we do not want or need them at all.

— Lori G
6:20 pm July 9th, 2008

Stella Artois ad–Quality has a price
AB ads–Wass Uppp?, The Bud Frogs, Real Men of Genius, Marketing with darn near every sport in the world.
Who is this guy trying to kid? Don’t drink InBev brands, keep AB St. Louis owned!!!

— Drew
6:29 pm July 9th, 2008

As I read Brito’s comments, he seems to be referring to A-B’s current overseas marketing and reach (referring to Budweiser as a potential ubiquitous global brand) and not the US ads. I think the original question does not accurately reflect this–his criticisms don’t seem to have anything to do with US marketing like their frog ads or the clydesdales.

Do I actually believe he won’t significantly trim the white collar work force in St. Louis (I could see 20-33% of those employees gone) and maybe close a brewery or two here (like the one in New England)? Of course not. Is he doing something different than many other potential acquirers do? No.

Lori–it’s not unusual for a company like InBev to not make a tender offer in writing when there’s no agreement to a deal with the potential acquisition target. Why should InBev commit itself to anything right now? That would just be a bad business decision on their part. I think it’s quite a stretch of the imagination to suggest they will lower the offer price, though; the big financial institutions that own most of this stock aren’t going to vote yes on a $60 or $62 deal. Look at the stock price today–investors are expecting the deal to happen at a minimum of $65/share.

Maureen–A-B is for sale in the same way your car is for sale. If I offer you a lot more than you think it’s worth, you’re probably going to sell me your car This is the way institutional investors look at these deals.

— Paul
6:40 pm July 9th, 2008

We love them, we respect them ? Thats why he is taking them to court to have them thrown out and replaced with his own people! Has anyone looked at the performance of his company in the first quarter of this year and what his stock is trading at today ? AB is one of the most admired and respected companys in the world. They have the two best selling beers in the world. AB shares its wealth with the communites where they operate. They are friendly to the enviroment. They work to help prevent alcohol abuse, drunk driving and underage drinking. They are a huge supporter of our armed forces and olympic athletes. Does anyone really think Brito is going to make AB a better company ? Here is an idea Brito take that 46 billon dollars and make your copmany a better one ! The people of AB and its culture have made it the company you so strongly desire to have. To all americans who love there country I ask that you please make your voices herd in opposition to the take over of A true american icon !!

— JP
6:41 pm July 9th, 2008

I believe that they can and will do what they say. Everyone is nervous that they will cut jobs and close breweries, but AB is doing the same thing to accomplish their target of increasing share prices. They are cutting roughly 5,000 jobs (either by buyouts or offering retirement packages) and they will be selling off their Theme Parks as soon as the dust settles a bit. The developer of the Amusement park in Dubai already made his visits to the theme parks and Sea Worlds to look them over for his potential purchase. I would hate to see AB be sold but in a global economy, they have to expand and look beyond the US. If they wanted to focus on staying just in the US and not worry about being taken over they could always buy back shares just like Inbev would do and they could own themselves again, but they already stated they would not and could not afford to do that. Just a couple thoughts.

— Mark
6:46 pm July 9th, 2008

JP–he’s taking the board to court and not the management. There is a big difference there.

— Paul
6:59 pm July 9th, 2008

As an AB shareholder, I would benefit from the takeover. As a former Inbev employe, my heart bleeds for AB people. You have to live under Inbev rule to truly appreciate all the horror. We’re talking 1940’s management style, treating employees with utter contempt, for the benefit of the select few. Unions and communism were born to fight this type of mentality. Discrimination is rampant, their famed “military” rigor only applies to managers who don’t have a Brazilian name. Sure, I’ll benefit as an AB shareholder, but we’re talking blood money here.

— Disbeliever
7:34 pm July 9th, 2008

InBev will do a great job directing AB. They will acomplish all or most of their goals and keep their promises.

So what, that’s not the point. The AB Board of Directors have done an average job. This is a wake up call. Can they shift gears, and take it to the next level?

Let’s find out. If not, InBev (What’s with that name, that name has no soul.) can step back in, and the shareholders will gladly turn it over.

What would make a difference for me is if AB changed its Board of Directors on its own. If it doesn’t, why should we expect any different.

If this is the new and improved AB Board, I’m from Misouri, show me!

— Scott K.
7:40 pm July 9th, 2008

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