Anheuser - Busch is the world's largest brewer of beers. Anheuser - Busch markets its products in more than 80 countries and controls 48% of the U.S. beer market. ABI lists total assets of 13.862 Billion dollars comprising its beer brewery operations and entertainment theme parks. The trend over the last 5 years has been for reduced beer consumption in the U.S. market. This has led to competitive pricing initiatives among the major breweries and the need to increase operating efficiency. Meanwhile, Anheuser - Busch has posted 7.4% average annual income net growth over the past 5 years while sales increased an annualized rate of just 3.5% per year.
This earnings growth is due to Anheuser - Busch creation of significant economies of scale in raw material procurement, manufacturing efficiency and marketing, thus increasing their operating margins. Anheuser - Busch categorizes its operations into 5 business segments of Domestic Beer, International Beer, Packaging, Entertainment and Other.
Of these 5 principal segments, it is worth noting that 79.7% of 2001 gross sales were contributed by domestic beer (Basch, 2002). Despite its' diversification, Budweiser beer is by far the largest revenue generator in the Anheuser - Busch.
Anheuser - Busch owns and operates 12 breweries located in 11 states, and another as a joint venture in Wuhan, China. Anheuser - Busch also owns and operates malt plants in 3 states, rice plants in 2 states, 2 hop farms, one in the US and one in Germany, 8 can manufacturing plants in 8 different states, 3 can lid manufacturing plants, a crown and closure material plant in Missouri, an aluminum can recycling plant in California, and a glass manufacturing plant in Texas through a limited partnership. Anheuser-Busch Entertainment Operations owns and operates 9 theme parks in 6 states and maintains a 16.1% equity...