Topic > Essay on Interbrew - 1183

IntroductionCorporate BackgroundInterbrew was headquartered in Leuven, Leuven is located on the outskirts of Brussels. The brewery changed its name to Artois, when brewmaster Sebastian Artois purchased it in 1717. The growth of the company skyrocketed because the company began to expand when it bought major shares of other breweries from different countries such as Belgium, the Netherlands and France . Interbrew has used various ways to enter foreign markets such as acquisitions and mergers, joint ventures etc. Interbrew's entry into the market of new countries has helped them become a global brand and gain more market share in different countries. In 1991 the company acquired a brewery in Hungary and in 1994 it also purchased breweries from Croatia and Romania. The company's real growth period began when the company acquired the largest Canadian brewery called Labatt, Labatt was already operating in the United States at that time. it was a great advantage for interbrew and also Labatt owns a substantial share of the largest Mexican brewery “Femsa Cervesa”. After this acquisition, Interbrew also purchased breweries in Ukraine, China, Russia and Korea. Interbrew expanded its operations to most countries and became one of the largest beer companies in the world. The company has expanded globally and sources approximately 90% of its volume from markets outside of Belgium. Interbrew is headquartered in Belgium and operates in more than 23 countries with subsidiaries and joint ventures (Beamish, 2014). Stella Artois was the global brand of Interbrew and the modern version of this beer was launched in 1920 as a Christmas beer and in the 1970s Stella Artois becomes the market leader in Belgium, but in the 1990s Stel... is in the middle of paper... but at the same time its competitors only reach 16%. The success story also happened in the USA because the annual sales volume increased by 9%. Sales volume of Interbrew's global brand, Stella Artois, grew by 19.7%, with Whitbread helping Interbrew achieve this. In addition to this, Interbrew products have generated a high margin in Europe, Asia Pacific and Africa from 31% in 1997 to 33% in 1998. Due to this increase in sales volume, Interbrew makes more profits than in previous years, in Belgium Interbrew's operating profit rose to 7.9%. This increase in sales volume also remained in 1999, in the USA the sales volume increased further to 10%. All this growth has brought Interbrew's product to a higher global position. Interbrew has met customer demand every time, that's why they have achieved higher sales volumes in every place they work.