Budweiser

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Country Flag of United States United States
Sector Beverages
Offices -
Employees -

Brand value $21,279m
Brand rating AAA-
Enterprise value -
Value / market cap 26.4%
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Value for money

Reliability

Performance

Corporate responsibility

Emotional attachment


Performance of the brand

The brand itself was brought to the US in 1876 by a German, and since developed itself as ‘The Great American Beer’, playing on its image as a real American success story. A highly successful beer in the US, the Budweiser brands make up the majority of the Anheuser-Busch 50.9% market share for all US beers sold. It is owned by the global alcobev giant, AB InBev.

Budweiser’s brand value has increased by 27.5%. Despite unfavourable short term forecasts, discount rate, and royalty rate, the company’s long term growth is expected to increase and this coupled with maintenance of its AAA- brand rating has resulted in an increase in brand value.

In March 2009 Anheuser-Busch, the AB arm of AB InBev, lost an EU ruling over the right to use “Budweiser” in the EU. As such the name cannot be used in the majority of the EU as Budweiser under European law can only refer to beers from the town of Budweis. Budweiser Budvar, a Czech company, retains the exclusive use of the name “Budweiser” in the majority of the EU.

The company aims to raise the profile of the brand in the Asian market - in August it announced that it would expand its presence in India. The Indian beer market has had a CAGR of 18% in the last three years and AB InBev is forecasting sales of 2.5 million cases by the year end.

However, in the face of falling sales volumes, the company has had to increase prices along with other major beer producers such as SAB Miller.

In Oct 2009 Blackstone Group bought the InBev amusement parks for $2.3billion and earned up to $400 million return on its initial investment. The parks were sold to help AB InBev repay debt and enable expansion of its overseas beer businesses. AB InBev reported a Q3 revenue drop of 10%, but still made $1.55bn net profit as savings from the merger proved to be better than planned.

League tables

Budweiser appears in the following brand league tables:

Rank 16 in the Global 500 2010.
Rank 19 in the Global 500 2009.
Rank 32 in the Global 500 2008.
Rank 31 in the Global 250 2007.

2010 brand performance*

Brand value $21,279m
Brand rating AAA-
Enterprise value -
Value / ent. value -

* Figures taken on 31st December 2009.

2009 brand performance*

Brand value $16,692m
Brand rating AAA-
Enterprise value -
Value / ent. value -

* Figures taken on 31st December 2008.

2008 brand performance*

Brand value $17,160m
Brand rating AAA-
Enterprise value -
Value / ent. value -

* Figures taken on 31st December 2007.

2007 brand performance*

Brand value $16,197m
Brand rating AAA-
Enterprise value -
Value / ent. value -

* Figures taken on 31st December 2006.

The Budweiser logo has taken many forms in the past, but the signature-style font has generally remained the same.

Mission statement

Be the number one beer company in the world by enriching and entertaining an increasing global audience. To deliver a substantial amount of 15% return to our shareholders, we will add to life’s enjoyment through our products, services, and relationships. In addition our goal is to increase sales by 25% each year.

Company history

Anheuser-Busch Companies, Inc. was founded in 1852. The struggling Bavarian Brewery in St. Louis was acquired by Eberhard Anheuser, a successful soap manufacturer, in 1860. It was in 1876 that Budweiser was introduced by Eberhard’s son-in-law, Adolphus Busch, a successful German businessman. Having travelled to Bohemia (today’s Czech Republic), Adolphus and his friend Carl Conrad were inspired to develop a ‘Bohemian-style’ lager for American’s.

In 1880, Eberhard died, leaving Adolphus to take over as president of the brewery and by 1901 the company broke the 1 million barrels of beer sales mark for the first time.  When National prohibition law came about in 1920, rather than close down like half of the nation’s breweries, Anheuser-Busch stayed open and marketed more than 25 non-alcoholic products. The company’s biggest growth was seen after the war during the 1950’s and 1960’s with beer sales hitting 34 million barrels by 1957.

Brand history

The name Budweiser originates from the town ‘Budweis’  in Czech Republic. Bohemians would typically name beer after their town, with the added suffix ‘er’. The American Anheuser-Busch Budweiser is not to be confused with Budweiser Budvar, the original Czech beer. The shortened name ‘Bud’ is used throughout Europe for the American Budweiser, with the exception of United Kingdom, where both companies use the name Budweiser.

Anheuser-Busch brews several other beers under the Budweiser brand including Bud Light and Bud Ice.

 

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Geographical revenue segmentation*

Visual representation of the revenue divided by geographical regions

* Source: Bloomberg Finance L.P.

Geography and products

Anheuser-Busch operates 12 breweries throughout the USA

Hi-res logo

Logo

The Budweiser logo today has a signature-style font, with a crown emblem above which reinforces the slogan 'King of all beers'.

Strapline

Budweiser have had several memorable straplines, with their most recent advertising campaign using the slogan 'True Dedication', in order to emphasise its authenticity and quality.

Advertising