Product details

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Authors: Fernando Chaddad (Accenture, Brazil)
Published in: 2002
Length: 20 pages
Data source: Published sources

Abstract

AmBev was created in 2000 as an acronym for Beverages Company of the Americas. It was born as the world''s third largest brewer, behind Anheuser Busch and Heineken, it was also the world''s fifth biggest beverages company. Headquartered in Brazil, AmBev was created through the merger of Brahma and Antarctica, then the country''s two largest beer companies and archrivals in both the beer and beverages markets. In 2000, AmBev controlled 70% of the Brazilian beer market and 17% of the domestic soft drinks market. Brazil was a large home base for AmBev with 82.6 million hectolitres of beer sold in 2000, the country was the fourth largest market in the world after the: (1) US; (2) China; and (3) Germany, and with 110 million hectolitres of soft drinks sold in 2000, Brazil was the world''s third largest market after the US and Mexico. In addition to a dominating presence in Brazil, AmBev geared up in the early 2000s for an expansion in Latin America. Already with significant market shares in: (1) Argentina: (2) Uruguay; (3) Paraguay; and (4) Venezuela, AmBev was alert to new opportunities. De-facto run by a former partner in an investment banking boutique, AmBev commanded a rich price earnings multiple on its stock by late 2001, as the company enjoyed a solid reputation amongst industry analysts. AmBev was by then regarded not only as a behemoth with a performance-centred culture, but also as an aggressive, efficient player that dominated attractive markets in the beer and beverages world. In the early 2000s, highly profitable AmBev was uniquely positioned to become Brazil''s first truly multinational concern. But the dream would not easily come true. Competition at home was as heated as ever, and international expansion both within and beyond Latin America posed the AmBev top management team with formidable challenges.
Location:
Industry:
Size:
USD2.5 billion sales
Other setting(s):
2000-2002

About

Abstract

AmBev was created in 2000 as an acronym for Beverages Company of the Americas. It was born as the world''s third largest brewer, behind Anheuser Busch and Heineken, it was also the world''s fifth biggest beverages company. Headquartered in Brazil, AmBev was created through the merger of Brahma and Antarctica, then the country''s two largest beer companies and archrivals in both the beer and beverages markets. In 2000, AmBev controlled 70% of the Brazilian beer market and 17% of the domestic soft drinks market. Brazil was a large home base for AmBev with 82.6 million hectolitres of beer sold in 2000, the country was the fourth largest market in the world after the: (1) US; (2) China; and (3) Germany, and with 110 million hectolitres of soft drinks sold in 2000, Brazil was the world''s third largest market after the US and Mexico. In addition to a dominating presence in Brazil, AmBev geared up in the early 2000s for an expansion in Latin America. Already with significant market shares in: (1) Argentina: (2) Uruguay; (3) Paraguay; and (4) Venezuela, AmBev was alert to new opportunities. De-facto run by a former partner in an investment banking boutique, AmBev commanded a rich price earnings multiple on its stock by late 2001, as the company enjoyed a solid reputation amongst industry analysts. AmBev was by then regarded not only as a behemoth with a performance-centred culture, but also as an aggressive, efficient player that dominated attractive markets in the beer and beverages world. In the early 2000s, highly profitable AmBev was uniquely positioned to become Brazil''s first truly multinational concern. But the dream would not easily come true. Competition at home was as heated as ever, and international expansion both within and beyond Latin America posed the AmBev top management team with formidable challenges.

Settings

Location:
Industry:
Size:
USD2.5 billion sales
Other setting(s):
2000-2002

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