ABInBev Taps Beer Profit Pools, May Target China M&A
Anheuser-Busch InBev announced a $565 million bond issue in Taipei on July 9. Given the $1 billion share buyback is over and company has a strong balance sheet, speculation may center on Asian M&A. ABInBev has a 20.8% share of the global beer market, with dominant shares in three of the six-largest profit pools -- the U.S., Brazil and Mexico. China is the largest market worldwide, with 50.9 billion liters of beer consumed, more than twice that in the U.S., the next largest market. (Corrects beer consumed in China.)
Impact: Peer Comparison: ABI is No. 3 in the Chinese market, with a 14% share, behind CRE Snow (49%-owned by SABMiller) at 23% and Tsingtao (20% owned by Asahi Group) at 18%. Beijing Yanjing Brewery has 11% and is independent. Local companies make up 29% of China's beer market.