An Overview of the Anheuser-Busch Company
For generations, Anheuser-Busch has been at the top of the beer industry, but they are being threatened by new brewers and the hard liquor market. To counteract that problem, the company is in midst of globalizing and entering the hard liquor market. Their standard concept is fresh beer done traditionally.
Now it is morphing into a tailor-made brew for a region while staying true to the traditional brews. The changes are being enacted because the company has been losing market share to new competition and consumer preferences Anheuser-Busch Inc. 2007.
Budweiser is a value for its customers because the process is an old technique, yet the company considers Budweiser as a new American Classic Lager.
Customers experience a crisp taste, combined with a clean, smooth, very drinkable beer. Budweiser beer is also made with all natural ingredients to give it a crisp taste with clarity and brilliance Anheuser-Busch Inc. 2007.
At the helm of Anheuser-Busch’s management team is Patrick T. Stokes, the Director of Anheuser-Busch. W. Randolph Baker is the CEO and Vice President of Busch Properties, Inc. August A. Busch IV is the Director, CEO, Chairman of the Board, and President of Anheuser-Busch Inc. Douglas J. Muhleman is the Group Vice President of Brewing Operations and Technology of Anheuser-Busch Inc.
August A. Busch III is the Director. The management is not balanced financially and it could pose a threat for the company with so much power in shares held within a small concentration of people.
Their salaries range from $919,000 to $4,399,516. Once a person adds in stock options, it is plain to see that the management’s salaries are broken down by seniority, with the senior management executives 60 years old or older making an average salary of $40,090,155.
Compare that to the other two executives profiled here (Busch IV & Muhleman) and they receive a paltry $6,438,116. It is obvious who wields the power within Anheuser-Busch Accelerize New Media Inc. 2007. The problem is if there is a misstep, it falls on one person, not the board .
There is a lot of power concentrated within the management sector, but the company is meeting the goals they set forth to accomplish to the shareholders Anheuser-Busch Inc. 2007. They were honest in their assessment of their market being taken over by newer brewers and the hard liquor market taking some of their market share.
They counteracted that starting in 2006, when they notified shareholders that their demographics were changing; to stop that, they would issue beer based on regional tastes, growing their core brand, and interest in expanding their portfolio with high growth, high margin products Anheuser-Busch Inc. 2007.
They did reach their objectives in their Letter to the Shareholders. On April 20, their stock was trading at 52.61 a share, close to their 52 week high of 53.32. It is obvious that their projections and assessments about where their market share was going was correct Investor Guide 2007.
The company’s strategy is where it needs to be for the future. Their measures have enabled them to re-establish their competitive position as the premier beer producer in the world. If one analyzes their stock over the past year, he or she will see that every time their stock suffered a loss, it came back even stronger Investor Guide.com 2007. Anheuser-Busch is definitely a stock to invest in.
Works Cited
Accelerize New Media Inc. 22 Apr 2007 <http://www.executivedisclosure.com/companies/310569/Anheuser‑Busch‑Companies‑Incorporated.aspx>
Anheuser-Busch Inc. 22 April 2007 <http://www.anheuser‑busch.com/ >
Investor Guide.com 20 April 2007 <http://www.investorguide.com/stock.cgi?ticker=BUD>
