FREE ESSAY ON ANHEUSER-BUSCH AND FRANCE

ANHEUSER-BUSCH AND FRANCE

Anheuser-Busch and France
Introduction 
Anheuser-Busch has been the nation's largest brewer for more than 40 years. In the
mid-1800's Adolphus Busch became familiar with the beers of a small Bohemian town called
Budweis. After immigrating into the United States he married into the Anheuser brewing
family. In the 1870's Adolphus Busch registered Budweiser as a trademark in the U.S.
Adolphus Busch dubbed his company Budweiser, "the king of beers." Budweiser is a
registered trademark of the St. Louis-based Anheuser-Busch, One Busch Place, St. Louis,
Missouri 63118-1852, which is the world's largest brewing company. Budweis is a small
brewing town in the Czech republic. The town has a 700-year-old history of beer brewing.
The brewing company Budvar of Budejovice registered Budweiser as a trademark in Europe in
1895. Budvar's Budweiser is considered by beer experts to be a greater beer than the
American Budweiser. Czechs are very proud of the Budvar brewery and considers its beer to
be a national treasure. In the days before a global marketplace, the American Budweiser
and the Czech Budweiser have never really competed with each other. However, in the
1990's with increased global competition in the beer market, this dispute over who
actually owns the Budweiser name takes on increased importance. According to a 1958
agreement signed by the Czech government, brand names that denote geographic origin are
protected. So the Czech government which owns Budweiser believes that they should be the
only ones allowed to carry that name in Europe. However the United States did not sign
that treaty in 1958, so they do not agree with this. They have decided that it was no
longer necessary for them to have a trademark settlement to develop the American
Budweiser business in Europe. 
In recent years Anheuser-Busch has faced increased competition in the U.S. market. As a
result of this increased competition the company has been looking overseas for growth and
increased profits. The American market is a relatively stagnant market for
Anheuser-Busch. There is very little growth in America and 94% of Anheuser-Busch's sales
occur inside America (Anheuser-Busch, 1999). Anheuser-Busch also has the resources to
compete with any European brew in the European market. In many countries in Europe,
Anheuser-Busch has begun to gain some market share and turn some profits. The American
market is a relatively stagnant market for Anheuser-Busch. There is very little growth in
America and 94% of Anheuser-Busch's sales occur inside America (Anheuser-Busch, 1999).
Imports like Amstel and Heineken have made inroads in the American beer market. To
increase sales and profits, Anheuser-Busch must look for business in foreign markets. In
order to compete with theses imports they created brands like Budlite, Michelob, Busch,
and Budweiser. Their dominance of the US beer market has a 100-year-old history. 
Budweiser Corporate Analysis 
Anheuser-Busch Companies, Inc. continually seeks opportunities to maximize shareholder
value and increase efficiency. The company has control of over 47% of the global market
share (Anheuser-Busch 1999). In the process of doing this, Anheuser-Busch has become one
of the most recognizable trademarks. Because of their world-renowned recognition
Anheuser-Busch Companies Inc is always looking to maximize their shareholder value and
increase efficiency. As noted in the Annual Report for 1999, Anheuser-Busch remains
focused on three major objectives to enhance shareholder value: Increasing per barrel
profitability which, when combined with continued market share growth, will provide solid
long-term earnings per share growth (Anheuser-Busch, 1999). Profitable expansion of
international beer operations by building the Budweiser brand worldwide and making
selected investments in leading brewers in key international beer growth markets
(Anheuser-Busch). The company has made significant marketing investments to build
Budweiser brand recognition outside the United States and operates overseas breweries in
Canada, China, United Kingdom, Ireland, Mexico, Spain, Japan, Italy and Argentina; and
services beer to twenty-eight countries worldwide (Budweiser). 
Packaging operations provide significant efficiencies, cost savings and quality assurance
for domestic beer operations, while entertainment operations enhance the company's
corporate image by showcasing it's heritage, values and commitment to quality and social
responsibility to 19 million visitors to the brewery annually, as well as adding their
profit contribution (Budweiser). The company's strong commitment to achieve these
objectives benefits all firms and individuals that maintain a vested interest in their
corporation. Competitive With an estimated 47.5% of the total market share for 1999,
Anheuser-Busch continues to widen the gap separating them from their nearest competitors
(Anheuser-Busch 1999). Budweiser and Bud Light are the No.1 and No. 2 best-selling beers
in the world. Miller, their closest rival maintains 22.1% of the market share
(Anheuser-Busch 1999 ). In 1999, they achieved record sales and earnings, selling over
100 million barrels of beer worldwide for the first time in history (Anheuser-Busch
1999). 
In Anheuser's effort to broaden their boundaries, the company has made significant
marketing investments to build Budweiser brand recognition outside the United States and
operates overseas breweries in Canada, China, United Kingdom, Ireland, Mexico, Spain,
Japan, Italy and Argentina; and services beer to twenty-eight countries worldwide
(Budweiser). France is just one of the many countries that Budweiser operates in despite
the European attitude against American Budweiser beer. 
French Economy—overview:
One of the four West European trillion-dollar economies, France matches a growing
services sector with a diversified industrial base and substantial agricultural
resources. Industry generates one-quarter of GDP and more than 80% of export earnings
(French Economy). The government retains considerable influence over key segments of each
sector, with majority ownership of railway, electricity, aircraft, and telecommunication
firms. It has been gradually relaxing its control over these sectors since the early
1990s. The government is slowly selling off its holdings in France Telecom, in Air
France, and in the insurance, banking, and defense industries. Meanwhile, large tracts of
fertile land, the application of modern technology, and subsidies have combined to make
France the leading agricultural producer in Western Europe. A major exporter of wheat and
dairy products, France is practically self-sufficient in agriculture. The economy
expanded by 3% in 1998, following a 2.3% gain in 1997 (French Economy). Persistently high
unemployment still poses a major problem for the government. France has shied away from
cutting exceptionally generous social welfare benefits or the enormous state bureaucracy,
preferring to pare defense spending and raise taxes to keep the deficit down. The JOSPIN
administration is preparing to both lower unemployment and trim spending, pinning its
hopes for new jobs on economic growth and on legislation to gradually reduce the workweek
from 39 to 35 hours by 2002 (French Economy). 
Manufacturing
In the early 1990s, manufacturing employed between 20% and 25% of the labor force
(Country Reports). The principal industrial concentrations are around Paris, in the
Nord-Pas-de-Calais and Lorraine coalfields, in the Lyon and Saint-Etienne complex of the
Rhone valley, and in the new industrial centers that have emerged in the English Channel
ports of Dunkerque and the Mediterranean industrial complex at Fos because of the use of
imported raw materials. Many French business enterprises are small to moderate in size,
although the competitive business climate created by membership in the EC has forced many
companies to be restructured and combined to form powerful corporations (Martinique).
The leading manufacturing industries are metallurgy, mechanical and electrical
engineering, chemicals, and textiles. In 1986, France ranked third in Europe in steel
production with an output of 14.8 million metric tons and second in aluminum output
(Martinique). These and imported metals are fabricated into a wide range of mechanical
and electrical equipment marketed throughout the world. French locomotives, turbines,
electronics equipment, nuclear power plants and submarines, and television systems are
famous for their innovative design, as are French automobiles, such as Citroen, Peugeot,
Simca, and Renault, and French aircraft, such as Mirage, Concorde, and Airbus. A wide
range of chemicals, including perfumes, pharmaceuticals, nitric acid, sulfuric acid, and
fertilizers, are also produced. The French textile and garment industry has long been
known for its high fashion, although in recent years the industry has lost many former
markets to lower-priced imports from countries with lower labor costs. (Martinique).
Mining
Less than 1% of the labor force is engaged in mining (Country Reports). In 1988 coal
production was 14.5 million metric tons (16.9 million U.S. tons), most of it from two
principal coalfields -- the Lorraine coalfield near Metz, which is an extension into
France of the Saar coalfield; and the Nord-Pas de Calais coalfield around Lille, which is
an extension into France of Belgium's Sambre-Meuse coalfields and is similarly
thin-seamed, faulted, and difficult to work (Country Reports). Since the 1950s many
inefficient mines in the north and in the Massif Central have been closed, and coal
output has declined by about 75% (?). Large bauxite deposits (from which aluminum is
produced) are mined in the south; France is one of Europe's leading producers of bauxite.
Potash deposits, used in the chemical industry, are extensive in the vicinity of
Mulhouse. Natural gas deposits have been worked since 1951(Country Reports). Small
amounts of petroleum are produced at the Parentis oilfield in the southwest, and the
search for petroleum deposits continues off the coast of Brittany and in the Bay of
Biscay (Country Reports).
Power
France's fuel resources are inadequate. The country has to import three-quarters of the
fuel, mainly petroleum, needed to meet its requirements. However, production of
electrical energy is significant. In 1988 output reached 372 billion kW h, with nuclear
energy representing 70% of the total (Martinique). France is the world's second-largest
supplier of nuclear power after the United States (Martinique). Hydroelectric plants
operate on the Isere, Durance, Rhine, Rhone, and Dordogne rivers. A tidal power plant is
located on the Rance River in Brittany (Martinique). 
Agriculture and Fishing
France is the leading agricultural nation in Europe and about 7% of the labor force are
engaged in agriculture, forestry, and fishing (Country Reports). Three-fifths of the land
area is used for farming; about 31% are cultivated, 3% is in vineyards and orchards, and
24% is used as meadow and pasture (Country Reports). 
In 1988, 47.6% of France's farm income came from livestock raising (Country Reports).
Cattle are raised mainly in the north and west; sheep and goats are raised primarily in
the drier, more mountainous south and east, and pigs and chickens are raised throughout
the country. France is Europe's leading producer of beef, veal, poultry, and cheese and a
leading producer of milk and eggs (Martinique).
Crops contribute about 52% of farm income, with cereals and sugar beets the most
important products (Country Reports). Wheat is widely grown in the Paris Basin, and
France ranks fifth in world wheat production (Martinique). Other grains grown are barley,
corn, and oats, which, with sugar beet factory residues, are used primarily for livestock
feed; some rice is grown under irrigation in the Rhone delta. Wine is a major crop
throughout the country, both the vin ordinaire, everyday wine, of the region and the
appellation controlee, or quality-controlled, wines of such regions as Burgundy,
Champagne, Bordeaux, and Alsace. Flowers are grown for perfume at Grasse, and a wide
variety of fruits and vegetables are raised in the warm Mediterranean region for shipment
to northern and central Europe. (Martinique).
Fishing, unlike agriculture, occupies only a modest place in the economy, but France
ranks 20th among the nations of the world in total fish production (Martinique). Fishing
is locally important in the coastal areas of Normandy and Brittany, the Southern Atlantic
coast, and the Mediterranean. Concarneau, Boulogne-sur-Mer, Lorient, and La Rochelle are
leading fishing ports (Martinique).
Trade and Tourism
France is the fourth largest exporter and the fifth-largest importer on the foreign trade
market. The two principal ports are Marseille and its annexes on the Mediterranean, and
Le Havre at the mouth of the Seine on the English Channel. In 1989 major imports broke
down as follows: machinery (26.6%); chemicals and chemical products (15.7%); agricultural
products (11.6%); automobiles (5.8%); petroleum and petroleum products (4.5%); other
fuels (4.3%) (Country Reports). Major exports were machinery (27.7%); agricultural
products (17.5%); chemicals (15.1%); and transportation equipment (12.7%) (Country
Reports). Most trade is conducted with other members of the EC. In 1997 more than 67
million tourists visited France, which ranked third among the nations of the world in
number of tourists (Country Reports).
Conclusion
Anheuser-Busch has achieved excellence around the world as the leader in the beer
industry. While the company ran into problems with its home town counterpart, Budvar's
Budweiser, it eventually gained respect and stature among the beer drinkers community
around the world. Although many Europeans dismissed the beer at first it has made a place
in each European country. France is known for it's wines and gourmet food but the people
have grown to love and enjoy our American tradition Budweiser from Anheuser-Busch.
Bibliography
REFERENCES
Anheuser-Busch Companies Inc, 1999 Annual Report. (1999). "Anheuser-Busch Announces
Record Sales and Earnings for the Fourth Quarter and Full Year 1999; Worldwide A-B Brand
Shipments Exceed 100 Million Barrels." Business Wire. (2000). Available :
http://www.budweiser.com
Anheuser-Busch Companies Inc. (2001) Anheuser-Busch Story. Available:
http://www.anheuser-busch.com/history/story.html
Budweiser homepage: http://www.budweiser.com/ 
Country Reports on Economics, Policy and Trade Practices: Courtesy of UM- St Louis.
(2000). Available:gopher://gopher.umsl.edu:70/00/library/govdocs/crpt/crpt0029
French Economy Introduction. (1999). Available:
http://www.france.com/business/economy.html
Keegan, Warren J. Global Marketing, (1999). "Case 5.2 Bud versus Bud". p. 202 -203
Martinique (Overseas Department of France) Economy. (1999). Available:
http://www.photius.com/wfb/wfb1999/martinique/martinique_economy.html