Budweiser InBev sells Australian beer business to Japan's Asahi

Budweiser InBev, the world's largest beer giant, has announced it has agreed to sell its Australian beer business to Asahi, Japan, for about $11.3 billion (about $77.7 billion), and that most of the proceeds from the divestiture of its Australian operations will be used to pay off its debts, with the deal expected to close in the first quarter of 2020At the same time continue to evaluate Budweiser Asia Pacific IPO possibilitiesthe company, which was scheduled to list on the Hong Kong Stock Exchange on July 19, plans to raise up to HK$76.447bn, which is expected to be the world's largest new equity raising so far this year and the largest IPO by the Hong Kong Stock Exchange so far this yearOn July 12th Budweiser InBev announced its decision not to promote budweiser's Listing on the Hong Kong Stock Exchange, causing an uproarBudweiser's net debt was $108.8 billion as of June 30, 2018The Asia-Pacific region has been the growth engine of Budweiser's InBev business, and the potential of its business is huge, will the multibillion-dollar debt-ridden Budweiser expand in China? Zhu Danfeng, a domestic food industry analyst, said budweiser's divestiture of its Australian business was still not enough to support debt, and Budweiser's China business was the highest quality business, and Budweiser would increase its investment in China to grab high-end market share, boosting China's high-end market position and increasing profits to pay down debtsome analysts believe that the future of domestic beer industry industry upgrade speed and the evolution of the competitive landscape is the main impact of industry profitsannual report shows that China Resources Beer, which has been the largest beer sales company in China, has been growing at a sluggish rate for three consecutive years, with revenues of 30 billion yuan and net profit hovering around the billion-year level for three consecutive years, while operating profit has fallen for three consecutive years and operating profit has fallen by 23.32 percent in 2018and Tsingtao beer revenue for three consecutive years firmly at 26 billion magnitude, in the domestic leading beer enterprises revenue growth rate gradually slowing background, high-end beer market has become the major domestic beer manufacturers must compete, have launched a deer-by-deerthe high-end market staged "three-country killing"at present, Budweiser Asia Pacific's main goal is positioned in the high-end beer fieldBudweiser's market share in China is 16.4%, second only to China Resources Snowflake and Tsingtao Beer, but Budweiser's domestic brand effect is strong, high-end product sales in the domestic one-large, its share reached 46.6%In 2018, Budweiser Asia Pacific sold 10.4 billion liters of beer, with the Chinese market contributing 76% of its salesin the face of Budweiser's long-term strength and expanding high-end market share, in August 2018, China Resources announced a HK$2.35 billion acquisition of Heineken Beer's China business, Europe's largest brewer, and integrating it with its existing businessHeineken will also indirectly hold a 19.9 per cent stake in China Resources BeerHeineken's high-end brand value, coupled with China Resources Beer's snow beer management and channel sales capabilities, which also gives the outside world more expectations for the future of China Resources Beer in the high-end marketand in addition to Budweiser, the domestic layout of high-end beer for many years is the Danish beer giant Carlsbergin 2013, Carlsberg Group became the de facto controller of Chongqing Beer through several rounds of increased holdingsSince 2015, Chongqing Beer has implemented a shutdown strategy for some subsidiaries with weak radiation capacity, strong replace ability and low operational efficiencyClosing the factory and focusing on the market have become the main action of Chongqing beer in recent yearsSina Finance learned from Chongqing Beer Insiders that Chongqing Beer is currently focusing on the market mainly in Chongqing, Sichuan and HunanIn terms of sales strategy, Carlsberg brand strategy is unexpected is not the international brand to do high-end, low-end brands to seize the low-end market, but the international brand portfolio and local brands of two major products do high-end, international brands include Leburg, 1614 Triumph and Carlsberg, and in the local in addition to Chongqing beer, such as in Yunnan, Carlsberg also launched feng shui moon beer, in Xinjiang launched the local beer Usu brandin addition, Sina Finance learned that the major leading beer companies in the face of slowing industry revenue growth, by going to excess capacity, closing factories to reduce costs, improve corporate profits, and Chongqing beer is to go to capacity to improve profits specimenChongqing beer factory has been basically completed, Sina Finance from industry insiders understand that Chongqing Beer was previously 23 branches, closed 9 branches, and now there are 14 companies, while China Resources has more than 90 breweries, closed 5 in 2017, closed 13 in 2018, 2019 closed not as big as 2018, but more than 2017Tsingtao Brewery will close Yangpu and Wuhu in 2018Budweiser Asia Pacific had 33 breweries at the end of the first quarter of 2019, down two from the end of last year2016-2018, Chongqing beer home to the company's net profit increased by 375.57 percent, 82.3 percent and 22.62 percent, respectivelythe most robust growth rate of Chongqing beer net profit in 2018 compared with its peersIn 2016-2018, Tsingtao Beer's annual net profit increased by -39.09%, 21.04% and 12.6% yoY, respectively, while China Resources Beer's net profit increased by 111.41%, 92.46% and -19.82%, respectivelyat present, the top five domestic beer enterprises are actively layout the high-end market, Zhu Danfeng said, the domestic high-end market pattern is mainly China Resources and Heineken, Carlsberg and Chongqing Beer and Budweiser staged the "Three Kills", Tsingtao Beer and Yanjing Beer layout high-end is still not enough, whether it is the product portfolio, brand influence can not reach the core competitiveness of high-end break-out;How far is China Resources from the high-end first by Borrowing Heineken?According to GlobalData, China Resources, Qingdao, Budweiser, Yanjing and Carlsberg, the top five brewers in China, accounted for 70.4% of domestic beer sales in 2018In 2018, China Resources Snowflake still accounts for 23.3% of China's market share in consumption, with Qingdao and Budweiser accounting for 16.4% and 16.2%, respectively, while Carlsberg accounts for 6.1% and Yanjing 8.5% but Budweiser has a 46.6 per cent share in the high and ultra-high-end markets, with a 6.4 per cent increase in its market share in six years In 2018, China Resources Snowflake's market share was 11%, down 2% from 2013, Tsingtao's share fell to 14.4%, down 1.7% from 2013, and Carlsberg's share was 4.6% and Heineken's 1.7% in the domestic sales of the absolute advantage of China Resources beer, the acquisition of Heineken China, the domestic high-end product sales market jumped to the first how far? in 1992, China Resources Group acquired Hong Kong listed company Yongdali, renamed it China Resources Ventures, is also the first listed company of China Resources Department, China Resources entrepreneurship main consumer business, its china-run Wanjia, China Resources Snow Beer, China Resources Wufeng, China Resources Beverages and other major companies in 1993, China Resources Group began to develop beer business in China, in 1994, China Resources Group acquired Shenyang Snowflake Brewery, the establishment of China Resources Beer, in August 2004, China Resources Beer changed its name to China Resources Snowflake Beer, in 2015 China Resources Group acquired China Resources Ventures all non-beer business, the company name changed from China Resources Ventures to China Resources Beer in March 2016, China Resources Beer bought back a 49 per cent stake in China Resources Snowflake, owned by British beer giant South Africa Miller China Resources Snow Beer is a wholly owned subsidiary of China Resources, with a 51 per cent stake in China Resources Ventures and 49 per cent by Miller Brewing Co., the UK beer giant in addition to the acquisition of snowflakes, China Resources also acquired More than 30 regional beer brands such as Qianjiang Beer, West Lake Beer and Blue Sword Beer, becoming the first echelon enterprise in the domestic beer industry, but China Resources Beer in the high-end layout has been weak for many years, its snow beer in 2013 high-end sales share of 13%, 2018 does not rise or fall, the proportion of 11% The acquisition of the Heineken Chinese brand has a high-end sales market share of 1.7% in 2018 beer expert Fang Gang told Sina Finance, China Resources beer products snowflake beer has been the first in the domestic sales, Budweiser beer in the domestic sales ranked first, beer low-end products although will occupy market share, but there is no future, profit can make enterprises go further, China Resources beer's biggest competitor is not Tsingtao beer, but Budweiser beer a top five domestic beer enterprises Dong Shi Wang Hai (pseudonym) to Sina Finance, said that the domestic fast-consumer brand want to enhance brand influence, the brand from the low-end transformation of high-end need to work hard, not high price is high-end, consumer recognition of high-end brands is the transformation of success, the process needs brand foundation and precipitation in the next 3-5 years, several big beer enterprises will have a winner in the high-end layout, no transformation success of enterprises may return to the low-end market But it won't exit the beer market, and 2014-2016 was the hardest year for the beer industry, with companies still profitable Zhu Danpeng believes that China Resources beer can not break through the snow beer high-end, but Heineken in China has a small market share, its sales capacity is not enough to cover the entire region of China, Run beer through its own national distribution network, to help Heineken further land in China, while completing The layout of China Resources in China's high-end beer market is unknown It will take another five years at present, after many years of market share competition, the top five leading enterprises each form a regional pattern of absolute advantage Such as China Resources in Sichuan, Anhui, Zhejiang, Tsingtao in Shandong, Shaanxi, Shanxi, Budweiser in Guangdong, Fujian, Yanjing in Beijing, Guangxi, Carlsberg in Chongqing, Sichuan and Hunan Why is Budweiser a big deal at the top end of the market? in 2018, Budweiser Asia Pacific's high-end sales reached a domestic market share of 46.6 percent, 40.2 percent in 2013 and 6.4 percent in six years why Budweiser is a big part of the high-end market? Wang Hai said that for a long time, several leading domestic beer enterprises are through low-cost competition to seize market share, long-term price war so that the impact of brand influence, China's beer enterprises really high-end transformation is from 2018 onwards, the current industry is enjoying the brand transformation and upgrading dividends, to avoid the vicious circle of low-cost competition the rise of Chinese beer in the reform and opening up, after rapid development, price war and large-scale mergers and acquisitions, the industry from 2013 began to peak in scale, the industry pattern appeared several large, industrial structure is being transformed and upgraded 2018, Tsingtao beer high-end brand Ogut, Hongyun head, classic 1903 and pure beer and other high-end products to achieve sales of 1.733 million liters, up 5.98% year-on-year; prospectus, Budweiser Asia Pacific mainly includes the East Asia Pacific (mainly Australia, Japan and South Korea) and the West Asia Pacific (mainly China, India, Vietnam and other countries), with Budweiser, Corona, Fuja, Kaishi, Harbin Beer and other brands Budweiser in the world's leading consumer private equity fund 3G Capital, 3G capital strong merger and acquisition integration of the gene is also in budweiser InBev's blood, the acquisition of assets, Budweiser Will in the acquisition of assets to increase profits through strict cost compression, this model let budweiser in the global beer industry today' giant position reported that the more famous merger in Budweiser's growth history was in 2008, when Ab.I.M acquired Anheuser-Busch in the United States to form Budweiser InBev; China's beer long-term in the low level of profitability, direct price increase difficulties, the industry gross margin and net interest rate is low, and the positioning of high-end beer Budweiser beer in product price increases, management fees, sales costs rate, financial expense rate, gross margin and net interest rate are more advantages 2018 Budweiser Asia Pacific gross margin of 55.17%, Carlsberg 50.94%, tsingtao beer 37.70%, China Resources 35.10%, Yanjing beer 39.41%, Chongqing beer 39.58% the net interest rate for Budweiser Asia Pacific in 2018 was 16.66 percent, compared with 5.35 percent for Tsingtao, 3.07 percent for China Resources, 1.59 percent for Yanjing beer and 11.65 percent for Chongqing beer the three rates for Budweiser Asia Pacific in 2018 were 15.56 percent, while Qingdao, China Resources and Yanjing reached 21.67 percent, 32.83 percent and 23.96 percent, respectively in terms of product prices, Chinese beer sales peaked in 2013 and have tended to decline since then, but sales in 2018 are up nearly 40 percent from 2013 This is due to the rise in popularity of high-end beer, sales of unit prices increased In 2018, Budweiser Asia Pacific's unit price is 5,591 yuan per ton, Chongqing beer is 3,544 yuan, while Tsingtao beer unit price is 3,399 yuan, Yanjing beer price is 2893 yuan, China Resources beer price is 2824, Yanjing beer price is 2737