Anheuser-Busch sells $47 billion worth of the liquid every year, boasting an absurdly high 24 per cent profit margin and inspiring some of the strongest customer loyalty. In essence Anheuser-Busch is one of those massive companies that can do little wrong in the eyes of their investors.

The company divides its operations into seven regions, the names of which are intended to be descriptive rather than geographically fastidious: North America, Mexico, northern Latin America, southern Latin America, Europe, Asia Pacific and Global Export & Holding companies.

The company’s North American region was responsible for 26 per cent of total volume in 2014. We take it for granted that the region that includes the United States has to be Anheuser-Busch largest, right? Wrong. That would be Latin America north, at 27 per cent.

This includes Brazil, one of the combined company’s countries of origin. The Asia Pacific region follows at 18 per cent. On a per-capita basis, no one drinks like Europeans do. Volume there accounted for 10 per cent of the company total, followed by Mexico at nine per cent, and Latin America south at eight per cent.

In absolute terms, the three biggest markets in the world for Anheuser-Busch are the United States, Brazil, and in the number three spot, China. Other than alcohol, the company is also a bottler of G-rated beverages in many nations. For instance 7-Up and Pepsi in Uruguay, Brazil, Argentina and Peru. The company’s total non-beer volume was 11 per cent in 2014.

Anheuser-Busch recently announced plans to buy SABMiller, the world’s second-largest brewer (brewing Miller, Foster’s, and many other recognised brands); thus increasing its market size further still.

Following an update to their latest merger deal Nomura analysts stated on January 22 that despite some minor setbacks there now seems to be a high probability that the deal is taking place in the upcoming quarters.

Furthermore such actions indicate the stability, as well as the financial promise of the organisation; thus one may speculate that the investor who runs with Anheuser-Busch stock is rarely disappointed, and is likely to remain satisfied for the foreseeable future.

This article was issued by Steve Diacono, for Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri & Co. Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

 

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