TABLE OF CONTENTS
ABOUT ABINBEV
01 FINANCIAL ANALYSIS
02
COMPETITORS
03 BUSINESS MODEL
04
PROCUREMENT STRATEGY
05
SWOT ANALYSIS
06
RECOMMENDATION
07
Who We Are Our
Anheuser-Busch InBev diverse
We are the world’s leading brewer, based in Leuven, Belgium. As
a company, we dream big to create a future with more cheers. We
portfolio
are always looking to serve up new ways to meet life’s moments, of well over 500
move our industry forward and make a meaningful impact in the beer brands
world. includes global
brands:
We are committed to building great brands that stand the test of
time and to brewing the best beers using the finest ingredients
BEER TOP 10 Brand Value 2022 $ Million
Budweiser®, Corona® and Stella Artois®; international brands Beck’s®,
1 Budweiser 15,067 Hoegaarden®, Leffe® and Michelob ULTRA®; and local champions such as
Aguila®, Antarctica®, Bud Light®, Brahma®, Cass®, Castle®, Castle Lite®,
2 Heineken 14,993 Cristal®, Harbin®, Jupiler®, Modelo Especial®, Quilmes®, Victoria®,
3 Stella Artois 10,346 Sedrin®, and Skol®. Our brewing heritage dates back more than 600 years,
spanning continents and generations.
4 Corona 8,717
5 Bud Light 8,096
6 Brahma 6,700
7 Cass 6,332
8 Skol 6,089
9 Guinness 4,431
10 Tecate 4,409
SOURCES: STATISTA (Beer brand value worldwide 2022 | Statista) © AB InBev 2023–All rights reserved
02. Financial Analysis
02. Financial analysis
ABInbev - Belgium
2022 2021 2020 2019 2018
$US million
Market Capitalization 119,090 104,570 138,230 159,580 129,130
Revenue 57,786 54,304 46,881 52,329 54,619
COGS 26,305 23,097 19,634 20,362 20,359
45.52% 42.53% 41.88% 38.91% 37.27%
Gross profit 31,481 31,207 27,247 31,967 34,260
Gross profit margin 54.48% 57.47% 58.12% 61.09% 62.73%
SG&A 17,555 17,574 15,368 16,421 17,118
SG&A % 30.38% 32.36% 32.78% 31.38% 31.34%
Other income/exp. 590 191 -2258 552 -35
EBIT 14,516 13,824 9,621 16,098 17,107
EBIT margin 25.12% 25.46% 20.52% 30.76% 31.32%
Net income 7,597 6,114 2,202 10,414 5,691
Account receivables 3,637 3,465 3,284 4,046 4,412
AR period (days) 23 23 26 28 29
Inventories 6,612 5,399 4,482 4,427 4,234
Inventories period (days) 42 36 35 31 28
Payables 18,589 17,810 15,898 15,876 15,512
Payables period (days) 117 120 124 111 104
Cash Conversion Cycle (days) (52.68) (60.13) (63.31) (51.64) (45.88)
03. Competitors
COMPANY ($ million) ABINBEV HEINEKEN BOSTON BEER COMPANY
MARKET CAP 119,090 56,560 4,290
REVENUE 57,786 31,767 2,090
COGS 26,305 27,844 1,228
GROSS PROFIT 31,481 3,924 0.861
EBIT 14,516 3,820 0.091
NET PROFIT 7,597 2,457 0.067
NET PROFIT (%) 6.4% 7.70% 3.3%
ACCOUNT RECEIVABLES 3,637 4,151 0.056
ACCOUNT RECEIVABLES (DAYS) 23 48 10
INVENTORIES 6,612 2,977 0.148
INVENTORIES PERIOD (DAY) 42 34 26
ACCOUNT PAYABLES 18,589 8,504 0.084
PAYABLE PERIOD (DAY) 117 98 15
CCC (53) (16) 21
03. Competitors
04. Business model
KEY PARTNERS THE COOPERATION ACTIVITIES THE IMPACTS
● Supplying ABInbev brewing factory with ● 100% energy used in brewing
• Enel Green Power renewable energy from Thunder Ranch products is renewable in 2021 (4 years
wind farm sooner than expected - 2025).
● Using leftover barley from our brewing ● Every year, our 175 major breweries
process to deliver highly nutritious, great produce 1.4 million tons of saved grain
tasting barley protein ingredient. with nutritional value => unique
• Evergrain and
opportunity to upcycle our used barley.
Biobrew
● Working to develop high-margin, value- ● Aiming to bring commercial to
added fermentation-derived proteins that precision fermentation -> create high-
are an alternative to animal proteins. quality, animal-free protein products.
● Manage manufacturing process and
● Using mathematical optimization of Gurobi its global operational network of over
• Guropi to synchronize and optimize its end-to-end 250 breweries and thousands of
Optimization, LLC supply chain planning and decision making distribution centers.
and maximize efficiency and profitability. ● Achieve a data-driven, agile, and
synchronized global supply chain
network.
04. Business model
BRANDS UNIQUE SELLING POINT CUSTOMER SEGMENTATION
The young from 25 - 35 years old,
Premium smooth taste thanks to exclusive
financial independence, living in big city.
oak brewing process in 30 days.
They appear in group from 5 people and
Drink with a chilled glass and chilled beer love partying.
Budweiser
The only beer in the world to drink with a The young from 25 - 30 (can be
piece of lemon. Drink with chilled bottle extended from 18-25), love chilling with
not with salt and ice friends, finding easy-to-drink beer.
Corona
The unique recipe uses special natural The young from 25 - 34 (can be
ingredients – Orange peel, cilantro extended from 18 years old), group with
seeds along with natural fruit flavor and more women than men and have
malt - used only in premium restaurant. tendency to drinks fermented juice or
Hoegaarden ciders.
04. Business model
BEER COST STRUCTURE AB INBEV IN REDUCING COST
1. Economy of scale
when buying Malt
2. Circular packaging
• Using the Barley straw
leftovers from ABInbev
production for creating the
package
05. Procurement Analysis
ABInBev Procurement Strategy
ECONOMY OF SCALE R&D ENVIRONMENTAL
IMPACTS
• 3 million metric tons of malt each • In 2022, ABInbev spent $268
year million in R&D: • ABInbev focus on reducing the
○ Products innovation impacts of their business to the
• 559 million hectoliters in global
○ Market research environment via:
production volume in 2022
○ Process optimization ○ Clean water
○ Product development ○ %CO2 emission
○ %GHG
=> The Innovations contributed to ○ Recycled materials
ABInbev’s 5 billions revenue in
2022
05. Procurement Analysis
AB INBEV 4 LEVERS OF COST-OUT
REDUCING OVER SPEC ENHANCE SUPPLIER COST
MULTI COORDINATION
FUNCTIONAL SPEC BREAK DOWN
• ABInbev coordinates with • R&D vs Marketing and • Regional level, ABInbev • Supplier need to create
many suppliers all over the Sales coordinates in term encourage the Regional BU account on ABInbev
world to achieve their of information to meet the to choose their own supplier platform and create
procurement KPI. expectation from suppliers for cost saving PO (Purchasing Order)
customers and fast supply before delivering products
• They run the global and local and services
suppliers program for cost • ABInbev using Gurobi • Payment term: 30 days, 90
efficiency. Mathematical Optimization days and 180 days
to integrate with their
supply chain planning
system for a better
calculation of resources
and demand planning.
05. Procurement Analysis - ESG
06. SWOT ANALYSIS
Strong brand portfolio
• More than 500 brands globally Over-dependence on Alcoholic
Beverages
Biggest beer producer in term of production • More than 94% of revenue come
volume in the world. from alcoholic beverage – beer,
• More than 3 million metric tons of quality 6% of revenue come from low and
malt and 559 million hectoliters in global non-alcoholic beverage.
production volume
S W
Growth of low alcoholic and non-alcoholic O T
beverage in future Supply chain disruption
• Non and low-alcohol volume will grow • The unpredictive global event
by 8% CAGR between 2021 and 2025, such as Ukraine war and Covid-
compared to regular alcohol volume 19 caused the disruption with
growth of 0.7% CAGR during that same huge impacts.
period.
07. RECOMMENDATION
BEER MARKET TREND IN UPCOMING YEARS
➢ THIS IS THE BIG OPPORTUNITIES FOR ABINBEV TO
FOCUS ON AND DRIVE GROWTH IN THE FUTURE
TEAM 11 LIST:
HCM31MBA33 – Đào Nguyễn Hồng Ngọc
HCM31MBA49 – Trần Quốc Công Thành
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