AB INBEV CASE STUDY: COMPANY, SUPPLY CHAIN & MARKETING — STRATEGIES, ISSUES, SOLUTIONS

Purpose of this Case

Provide a concise, decision‑oriented briefing on Anheuser‑Busch InBev (AB InBev): who they are, how their supply chain and marketing engines work, what’s breaking, and practical solutions. This front section is designed to set context before the three vignettes.

Company Overview

AB InBev is the world’s largest brewer, headquartered in Leuven, Belgium, with operations in 50+ countries and a portfolio that includes Budweiser, Bud Light, Michelob Ultra, Corona (outside the U.S.), Stella Artois, Beck’s, Hoegaarden, and many leading local champions (e.g., Quilmes in Argentina, Aguila in Colombia, Skol in Brazil). Growth has historically come from aggressive M&A (notably Anheuser‑Busch in 2008 and SABMiller in 2016), followed by tight integration, scale efficiencies, and obsessive cost discipline (e.g., zero‑based budgeting).

Strategically, AB InBev focuses on three growth pillars: (1) Premiumization (trading consumers up to higher‑margin brands and occasions), (2) Digital transformation (data‑driven commercial execution and e‑B2B), and (3) Portfolio expansion into no‑ and low‑alcohol beer and ‘beyond beer’ adjacencies (e.g., seltzers, RTDs in select markets).

Supply Chain: Strategies

AB InBev’s supply chain is engineered for global scale with local execution:

• Global Procurement & Category Management: Centralized sourcing for barley, hops, malt, adjuncts, glass, aluminum, and cartons; strategic supplier partnerships and hedging to manage volatility.
• Partial Vertical Integration: Ownership of critical nodes (e.g., malting, some can/bottle plants, and distribution assets in select markets) to stabilize cost, quality, and lead times.
• Local Brewing Networks: Dozens of breweries and packaging plants positioned near demand to reduce freight, ensure product freshness, and meet local regulations.
• Digital & Analytics: Predictive demand planning, route optimization, and shop‑floor automation; the BEES e‑B2B platform enables millions of small retailers to order, get promotions, and access credit/insights.
• Logistics Orchestration: Mix of direct‑store delivery (DSD) and wholesaler models; dynamic routing for cold‑chain where applicable; network design for peak seasons/events.
• Sustainability by Design: ‘Smart agriculture’ with growers, water stewardship in high‑risk basins, 100% renewable electricity ambition, and circular packaging (light‑weighting, returnable glass, recycled aluminum, and refill logistics in markets where viable).

Supply Chain: Issues & Pain Points

Despite scale advantages, the network faces recurring vulnerabilities:

• Commodity & FX Volatility: Aluminum, barley, energy, and freight spikes compress margins; hedging reduces but does not eliminate exposure.
• Logistics Disruptions: Port congestion, container shortages, and driver capacity constraints—especially around peak seasons and after shocks (pandemic, geopolitics).
• Water & Climate Risk: Droughts/floods affect barley yields and plant uptime; water‑stressed regions raise capex/opex for treatment and reuse.
• Packaging & EPR Pressures: Rising extended‑producer‑responsibility fees and bans (single‑use plastics) require rapid packaging transitions and reverse‑logistics capabilities.
• Retailer Fragmentation in Emerging Markets: Millions of mom‑and‑pop outlets create order variability, credit risk, and merchandising execution gaps.
• Regulatory & Tax Friction: Excise tax hikes, advertising restrictions, and local content rules drive frequent reformulation and supply re‑design.

Supply Chain: Problem → Solution Playbook

• Volatility & Cost Spikes → Multi‑sourcing + Strategic Inventory: Dual‑source critical inputs regionally; hold buffered stocks for barley/aluminum near plants tied to risk signals.
• Logistics Bottlenecks → Network Re‑design & Modal Mix: Add near‑port packaging capacity, flexible carriers, rail/barge where feasible; use digital control towers for E2E visibility.
• Water‑Stress → Basin‑level Projects & Closed‑Loop Water: Invest in watershed restoration, wastewater reuse, and heat‑tolerant barley varieties.
• EPR & Circularity → Returnables & Light‑weighting: Expand returnable glass in receptive markets; increase recycled content and light‑weight SKUs; standardize formats to scale recovery systems.
• Fragmented Retail → Scale BEES & Micro‑fulfillment: Incentivize digital ordering, offer embedded credit responsibly, and deploy micro‑hubs/dark stores to stabilize service and freshness.

Marketing: Strategies

AB InBev’s marketing model blends portfolio architecture, cultural platforms, and rigorous ROI management:

• Portfolio Architecture: Clear roles—e.g., Budweiser (heritage global icon), Michelob Ultra (active/low‑carb), Stella Artois (premium European), Corona (natural lifestyle) plus strong local champions.
• Occasion‑Led Positioning: Daypart and occasion mapping (sports viewing, BBQs, nightlife, mindful moderation) to guide pack/price/promo and creative.
• Global Platforms & Sponsorships: FIFA/football, NFL/Super Bowl in the U.S., and the Olympics via non‑alcoholic Corona Cero in many markets to reach mass, multicultural audiences.
• Data‑Driven Precision: Mix‑modeling and market experiments guide media weights; retail media and BEES data sharpen local promo mechanics and assortment.
• Innovation & Renovation: Rapid pipeline in low/no‑alcohol, flavors,