AB InBev
AB InBev is the world's largest brewer, controlling roughly 30% of global beer volume after acquiring Anheuser-Busch in 2008 and SABMiller in 2016 for $100+ billion.
AB InBev is the world's largest brewer, controlling roughly 30% of global beer volume after acquiring Anheuser-Busch in 2008 and SABMiller in 2016 for $100+ billion. The company demonstrates power law concentration: 20 brands each generate over $1 billion annually (just 3% of its 630 brands), with megabrands like Corona, Budweiser, and Stella Artois representing 57% of total revenue.
But AB InBev also shows how conquest disguised as coalition destroys value. When InBev acquired Anheuser-Busch in 2008, they marketed it as a 'partnership of equals.' Internal documents revealed the truth: $1.5 billion in annual cost cuts, replacement of all AB senior executives within 18 months, zero grooming investment. They achieved the cost cuts but triggered $2.8 billion in annual revenue decline - a net loss of $1.3 billion annually - and destroyed $20 billion in brand value as Budweiser market share fell from 15.2% to 11.8%.
The damage compounds: AB InBev's reputation as a partner who extracts rather than collaborates creates lasting reputational costs that prevent future true coalitions. Meanwhile, craft breweries survive by occupying niches too small or specialized for efficient large-scale exploitation - demonstrating how predator-prey dynamics create refugia where smaller competitors can persist.
Cautionary Notes on AB InBev
- Zero grooming investment before integration
- All AB executives replaced within 18 months
- Cultural destruction eliminated brand authenticity
- Reputation damage prevents future true partnerships
AB InBev Appears in 3 Chapters
AB InBev's 2008 Anheuser-Busch acquisition was marketed as partnership but executed as conquest - achieving $1.5B cost cuts while triggering $2.8B revenue decline.
How AB InBev's fake coalition destroyed value →AB InBev demonstrates power law brand concentration - 20 brands (3% of portfolio) generate $1B+ each, megabrands represent 57% of revenue.
AB InBev's power law dynamics →As world's largest brewer (30% global volume), AB InBev demonstrates how craft breweries survive in niches too small for large-scale exploitation.
AB InBev's predator-prey dynamics →