html On July 13, the world's largest beer company, Busch InBev , issued a statement saying that it has decided not to promote its subsidiary Busch Asia-Prince's IPO plan in Hong Kong, China. It is reported that the reason for InBev 's move is due to factors such as the current market situation. At the same time, the company will evaluate various options to improve shareholder value, optimize business and drive long-term growth, and strictly abide by financial discipline. One week after the IPO of Budweiser Asia Pacific , the battle to list in Hong Kong, which was a hottest IPO, has finally come to an end. As of press time, a Beijing Business Daily reporter interviewed InBev on the matter, but did not get in touch. Recently, through a market survey conducted by Beijing Business Daily reporters, it was found that behind the largest IPO shutdown, there are several unspeakable hidden hidden things in Budweiser. Hidden worries: "Greedy Snake" encounters embarrassment of money
Looking at the acquisition market in recent years, Budweiser won by quantity and became the only "winner". Among the many acquisitions, the most eye-catching thing is that in 2016, InBev Anheuser-Busch spent a huge amount of 679.1 billion yuan to acquire SAB Miller, thus monopolizing one-third of the global beer market. In addition, Budweiser has successively acquired Australian online retailers, Korean craft breweries, Blue Girl Beer, etc. in the foreign market; in the Chinese market, after Budweiser joined hands with Harbin, its market share further expanded, making it taste the sweetness, and has successively acquired some domestic beer brands such as Harbin Beer, Xuejin, Shuanglu, Jinling, Santai, Mudanjiang , etc. As of March 31, 2019, the company's balance sheet listed goodwill of US$13.2 billion, accounting for 51% of its total assets, and its intangible assets were US$4.4 billion, accounting for 17% of its total assets.
's successive huge mergers and acquisitions have caused Budweiser-Busch InBev to be seriously damaged, debts have risen, and the "acquisition crazy" of over-consumption has exposed its elbows. It has to slow down and find new ways to make up for the current situation of "lack of money". Zhu Danpeng, an analyst at Chinese food industry, said, "Now, the European and American markets are relatively weak and the growth is weak, while the entire emerging market in Asia shows a strong growth trend. Therefore, Budweiser splits some of its Asia-Pacific businesses and goes public in Asia. In addition, from a macro perspective, after Budweiser acquired SAB Miller, cash flow is relatively scarce, and it is difficult to make up for the tight funds in a short period of time. Therefore, Budweiser splits the high-quality Asia-Pacific sector and lists it separately, which can be sought after and favored by the capital side, and can solve the capital problem to a large extent. From a micro perspective, the split stock price, capital and profit are well supported. Among the dividends of consumption upgrading in the Asian market, Budweiser's tone and product structure can be very good. ”
beer marketing expert Fang Gang said, “Budweiser attaches great importance to the Asian market, of which the Asian market accounts for about 35% of the global market. Budweiser InBev split Budweiser Asia Pacific makes it listed on the Hong Kong Stock Exchange, and the focus is that China's market share is relatively large. By expanding the Chinese market, Budweiser Asia Pacific can obtain more revenue to make up for the funding gap of the parent company.”
Picture source: Announcement screenshot
Hi-Tech 2: China Resources Heineken Co., Ltd. The pattern of high-end beer has changed. As an important part of the domestic mid-to-high-end market, Budweiser has long been rooted in the domestic mid-to-high-end beer market. The prospectus shows that in 2018, InBev achieved a total operating income of US$54.62 billion and a net profit of US$4.368 billion in 2018. Among them, Budweiser Asia Pacific beer sales in 2017 and 2018 were 10.199 billion liters and 10.427 billion liters respectively. In the Chinese, Australian and Korean markets, sales were the first, and they achieved operating income of US$7.79 billion and US$8.459 billion, and net profit of US$1.077 billion and US$1.409 billion respectively. Among them, net profit in 2018 increased by 30.5% year-on-year, with operating profit of US$1.966 billion, contributing 71.67% of operating profit to the parent company. In terms of sales volume, in 2018, Budweiser's market share in the Chinese market was 16.4%, ranking second only to China Resources Snowflake and Qingdao Beer. While vigorously expanding sales channels, Budweiser also focuses on deep cultivation of high-end products, with a share of 46.6%.
is a competitor of Budweiser Beer . Heineken, which also started as a "nightclub", competed alone in the Chinese market, but the effect was not satisfactory.In August 2018, China Resources Beer acquired the Heineken Beer business in China for HK$24.35 billion. Since then, both sides have developed together as needed. China Resources Beer has expanded the high-end market with Heineken and adjusted its product structure; Heineken has vigorously expanded the market with the help of the "boss" China Resources, and seized market share with Budweiser. Last year alone, China Resources Beer revenue was 31.87 billion yuan and net profit was 977 million yuan.
After Heineken received the "olive branch" from China Resources, the entire domestic high-end beer market structure trembled, showing the "four-legged" pattern of Yanjing, Qingdao, China Resources and Budweiser. Heineken, which has increased its investment in channels, has become a stronger opponent for Budweiser.
Hidden worries 3: Layout crafts to make profits, with little effect
In recent years, the emergence of the industry's "dark horse" craft beer has been further divided, causing domestic mid-to-high-end beer to face a crisis. Craft beer targets high-end consumers in the market with certain consumption capacity. In addition, craft beer has a richer taste than listening beer and is widely loved by the market, which once seized most of the market share. This has a great impact on Budweiser, which is rooted in the high-end market.
However, as beer consumption enters the "craft era", Budweiser also values its craft development space. In 2017, Budweiser's ZX Ventures acquired Shanghai craft beer brands Boxing Cat, Shanghai Beer House Kaiba, Eidou and other companies to enter the craft field. In addition, Budweiser also acquired a small proportion of the world's famous craft beer rating and sharing platform RATEBEER, but the effect was mediocre.
found in the market visit and feedback that Budweiser, which is committed to craft investment, has increased its investment in capital, but has not received corresponding "return". According to the financial report, Budweiser-Busch InBev 's sales in the first quarter of 2019 were 13.3462 million kiloliters, a year-on-year decrease of 1.02%, of which 2.3986 million kiloliters were sold in the Asia-Pacific region, a year-on-year decrease of 1.28%. InBev achieved revenue growth of 7.8% in the first quarter of the Chinese market, but sales fell by 1.1%.
Beijing Business Daily reporter Liu Yibo Intern reporter Feng Ruonan
