Anheuser-Busch And France Anheuser-Busch and France Introduction Anheuser-Busch has been the nation’s largest brewer for more than 40 years. In the mid-1800’s Adolphus Busch became familiar with the beers of a small Bohemian town called Budweis. After immigrating into the United States he married into the Anheuser brewing family. In the 1870’s Adolphus Busch registered Budweiser as a trademark in the U.S. Adolphus Busch dubbed his company Budweiser, “the king of beers.” Budweiser is a registered trademark of the St. Louis-based Anheuser-Busch, One Busch Place, St.
Louis, Missouri 63118-1852, which is the world’s largest brewing company. Budweis is a small brewing town in the Czech republic. The town has a 700-year-old history of beer brewing. The brewing company Budvar of Budejovice registered Budweiser as a trademark in Europe in 1895. Budvar’s Budweiser is considered by beer experts to be a greater beer than the American Budweiser.
Czechs are very proud of the Budvar brewery and considers its beer to be a national treasure. In the days before a global marketplace, the American Budweiser and the Czech Budweiser have never really competed with each other. However, in the 1990’s with increased global competition in the beer market, this dispute over who actually owns the Budweiser name takes on increased importance. According to a 1958 agreement signed by the Czech government, brand names that denote geographic origin are protected. So the Czech government which owns Budweiser believes that they should be the only ones allowed to carry that name in Europe. However the United States did not sign that treaty in 1958, so they do not agree with this.
They have decided that it was no longer necessary for them to have a trademark settlement to develop the American Budweiser business in Europe. In recent years Anheuser-Busch has faced increased competition in the U.S. market. As a result of this increased competition the company has been looking overseas for growth and increased profits. The American market is a relatively stagnant market for Anheuser-Busch.
There is very little growth in America and 94% of Anheuser-Busch’s sales occur inside America (Anheuser-Busch, 1999). Anheuser-Busch also has the resources to compete with any European brew in the European market. In many countries in Europe, Anheuser-Busch has begun to gain some market share and turn some profits. The American market is a relatively stagnant market for Anheuser-Busch. There is very little growth in America and 94% of Anheuser-Busch’s sales occur inside America (Anheuser-Busch, 1999). Imports like Amstel and Heineken have made inroads in the American beer market. To increase sales and profits, Anheuser-Busch must look for business in foreign markets. In order to compete with theses imports they created brands like Budlite, Michelob, Busch, and Budweiser.
Their dominance of the US beer market has a 100-year-old history. Budweiser Corporate Analysis Anheuser-Busch Companies, Inc. continually seeks opportunities to maximize shareholder value and increase efficiency. The company has control of over 47% of the global market share (Anheuser-Busch 1999). In the process of doing this, Anheuser-Busch has become one of the most recognizable trademarks. Because of their world-renowned recognition Anheuser-Busch Companies Inc is always looking to maximize their shareholder value and increase efficiency. As noted in the Annual Report for 1999, Anheuser-Busch remains focused on three major objectives to enhance shareholder value: Increasing per barrel profitability which, when combined with continued market share growth, will provide solid long-term earnings per share growth (Anheuser-Busch, 1999).
Profitable expansion of international beer operations by building the Budweiser brand worldwide and making selected investments in leading brewers in key international beer growth markets (Anheuser-Busch). The company has made significant marketing investments to build Budweiser brand recognition outside the United States and operates overseas breweries in Canada, China, United Kingdom, Ireland, Mexico, Spain, Japan, Italy and Argentina; and services beer to twenty-eight countries worldwide (Budweiser). Packaging operations provide significant efficiencies, cost savings and quality assurance for domestic beer operations, while entertainment operations enhance the company’s corporate image by showcasing it’s heritage, values and commitment to quality and social responsibility to 19 million visitors to the brewery annually, as well as adding their profit contribution (Budweiser). The company’s strong commitment to achieve these objectives benefits all firms and individuals that maintain a vested interest in their corporation. Competitive With an estimated 47.5% of the total market share for 1999, Anheuser-Busch continues to widen the gap separating them from their nearest competitors (Anheuser-Busch 1999).
Budweiser and Bud Light are the No.1 and No. 2 best-selling beers in the world. Miller, their closest rival maintains 22.1% of the market share (Anheuser-Busch 1999 ). In 1999, they achieved record sales and earnings, selling over 100 million barrels of beer worldwide for the first time in history (Anheuser-Busch 1999). In Anheuser’s effort to broaden their boundaries, the company has made significant marketing investments to build Budweiser brand recognition outside the United States and operates overseas breweries in Canada, China, United Kingdom, Ireland, Mexico, Spain, Japan, Italy and Argentina; and services beer to twenty-eight countries worldwide (Budweiser).
France is just one of the many countries that Budweiser operates in despite the European attitude against American Budweiser beer. French Economy – overview: One of the four West European trillion-dollar economies, France matches a growing services sector with a diversified industrial base and substantial agricultural resources. Industry generates one-quarter of GDP and more than 80% of export earnings (French Economy). The government retains considerable influence over key segments of each sector, with majority ownership of railway, electricity, aircraft, and telecommunication firms. It has been gradually relaxing its control over these sectors since the early 1990s.
The government is slowly selling off its holdings in France Telecom, in Air France, and in the insurance, banking, and defense industries. Meanwhile, large tracts of fertile land, the application of modern technology, and subsidies have combined to make France the leading agricultural producer in Western Europe. A major exporter of wheat and dairy products, France is practically self-sufficient in agriculture. The economy expanded by 3% in 1998, following a 2.3% gain in 1997 (French Economy). Persistently high unemployment still poses a major problem for the government. France has shied away from cutting exceptionally generous social welfare benefits or the enormous state bureaucracy, preferring to pare defense spending and raise ta …