Budweiser selling out

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seafarer john
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RE: Budweiser selling out 2008/07/14 10:55:55 (permalink)
Bye bye, bud. dont let the door hit you in the ass on your way out!!

Cheers, John
#61
jmckee
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RE: Budweiser selling out 2008/07/14 10:57:09 (permalink)
quote:
Originally posted by leethebard

quote:
Originally posted by RubyRose



Yuengling is my "american" beer of choice these days...especially on tap, it's great!!!!!


Overheard in a grocery beer section a couple years back:

"Do you like Yuengling?"

"I don't know. I've never Yuengled."
#62
exsquidao
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RE: Budweiser selling out 2008/07/14 11:02:16 (permalink)
Do those sentiments go for the people who may lose their jobs as well?
#63
John Fox
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RE: Budweiser selling out 2008/07/14 11:06:18 (permalink)
I have at least one friend and a few aquaintances who work for Anheuser Busch. I don't want to see anyone lose their job, but it happens all the time. No one from AB shed any tears when people in Pa lost their jobs at Rolling Rock.
#64
WarToad
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RE: Budweiser selling out 2008/07/14 11:18:32 (permalink)
My brother doesn't work for Bud, but he does work for the regional Iowa distributor of Bud products. He has skin in the game with the buyout. The overall consensus among people who work for Bud and with Bud is that it'll have negligable impact on the typical worker.

InBev is buying Bud because Bud is a money maker. You don't break your cash cow. You don't try to fix something that works great. InBev wants Bud to succeed. There will be minor tinkering, any job losses will very likely be in upper management as Bud VP's are absorbed into InBev VPs and redundant positions are eliminated. To Joe average factory worker, truck triver, mid level manager, the logohead on memos will change, but life and work will safely go on.

Edit - You have to realize InBev has very little footprint in the U.S. They can't just switch factory lines over to one of their own. They don't have much here, and Bud's volume is just too massive.
#65
Rusty246
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RE: Budweiser selling out 2008/07/14 11:27:05 (permalink)
My nephew(lower on the totem pole)and his Father-In-Law(upper management) both work for Bud in Jax, they're jobs are safe. Of course there is a little favoritism here.
And hey, AB has chips and pretzels why not pizza?!?!?
#66
Scorereader
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RE: Budweiser selling out 2008/07/14 14:06:01 (permalink)
quote:
Originally posted by WarToad

My brother doesn't work for Bud, but he does work for the regional Iowa distributor of Bud products. He has skin in the game with the buyout. The overall consensus among people who work for Bud and with Bud is that it'll have negligable impact on the typical worker.

InBev is buying Bud because Bud is a money maker. You don't break your cash cow. You don't try to fix something that works great. InBev wants Bud to succeed. There will be minor tinkering, any job losses will very likely be in upper management as Bud VP's are absorbed into InBev VPs and redundant positions are eliminated. To Joe average factory worker, truck triver, mid level manager, the logohead on memos will change, but life and work will safely go on.

Edit - You have to realize InBev has very little footprint in the U.S. They can't just switch factory lines over to one of their own. They don't have much here, and Bud's volume is just too massive.


I admire your optimisim, and I hope it proves to be true. However, right now, the employees of breweries in small cities, like my hometown of Syracuse, where a Budweiser brewery has been for decades, believe that their jobs, incomes, families and homes are in jeopardy.
http://www.syracuse.com/news/index.ssf/2008/07/report_anheuserbusch_agrees_to.html

of course, they bicker on that website as much as we do, but one gets the sense that there are worries as to whether or not some or all 885 people will be out of a job in 6 months.

I keep hope up, because keeping local breweries open will save money on transportation, which is the major reason why prices are skyrocketing.
#67
WarToad
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RE: Budweiser selling out 2008/07/14 14:24:48 (permalink)
I was listening to CNBC this morning and several beverage industry analysts were on discussing the buyout and likely consiquences of it.(Because it has been a hot topic for about 4-5 weeks now in the stock market and financial world.) Apparently InBev and Bud have quite a bit of overlap in China as well as a few other Asian countries. They expect significant job and cost cutting in distribution and marketing in China especially. Overlap in US however they described as "nearly zero" because InBev has so little market share here. They postulated if anything, InBev would cede over to Bud's very well established production, distribution, and marketing network already in place. The beauty of this buyout for InBev, was going from nearly no US presence to having the #1 production and distribution network in the country. They would gain nothing from taking a hammer to it.

What will happen... only time will tell. The fears people have are very natural and very real, but I think they'll prove to be overblown just from being in the heat of the moment.
#68
firecommander3565
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RE: Budweiser selling out 2008/07/14 15:13:17 (permalink)
Does anyone remember when we sold the Japanese Pebble Beach Golf Course for $900 Million (+) ??? People cried, thinking we lost a great American treasure. When the economy in Japan tanked, we bought it back for $575 Million.

We should be glad to sell Butwiper for $54 BILLION, hopefully though... we will never but it back!
#69
Tedbear
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RE: Budweiser selling out 2008/07/14 15:41:44 (permalink)
quote:
Originally posted by Rusty246

My nephew(lower on the totem pole)and his Father-In-Law(upper management) both work for Bud in Jax, they're jobs are safe. Of course there is a little favoritism here.
And hey, AB has chips and pretzels why not pizza?!?!?


...and according to one forum member, they also have steak! Hmmm...do you think that they supply those dodgy "Steakhouse Steaks" that Wal-Mart is advertising?
#70
Baah Ben
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RE: Budweiser selling out 2008/07/14 15:46:09 (permalink)
WarToad...I'm impressed..Thanks. Hope you are correct. I did not thionk they could find that much savings in marketing....
#71
David_NYC
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RE: Budweiser selling out 2008/07/14 22:20:31 (permalink)
The funny thing about these megs semi-hostile buyouts is that no one will know how things will play out. Remember when Parmalat was buying all sorts of food companies in the USA? Well, turns out Parmalat was cooking their books as well as pasteurizing (cooking) their milk. Remember when Royal Ahold (often misspelled as Royal Asshold) was buying up super market chains such as Stop and Shop, Edwards, Giant of Landover, Giant of Carlisle, Tops, Bi-Lo, Bruno's, Martin's? Turns out Royal Ahold was cooking their books as well. They sold off the southern chains to reduce debt.

I guess the A-B board is proud they got INBEV to bend over and take on 45 Billion in debt for this all-cash transaction. The Busch family is probably cashing out at the right time as well. Remember Falstaff, Schlitz, Stroh, Ballantine, and a host of other breweries that tanked?

As for me, its mox-nix. I have not bought A-B products in years. Foodbme reports Straub's is now available in New York. That is great. I no longer have to climb the side of a mountain to get to the brewery. In years past, I would drive to the brewery at St. Mary's, pull out a wad of 20's, and tell the guys to fill up the trunk with as many 'greenies' as they could fit into the trunk.
#72
The Travelin Man
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RE: Budweiser selling out 2008/07/14 22:52:20 (permalink)
There was nothing hostile or "semi-hostile" about this sale. InBev offered $65/share, BUD said no. InBev upped their offer to $70/share, BUD said yes. This stock traded in the 40s as recently as March (four months ago). InBev is paying a premium of about 30% from the share price from when they went public with their offer - and a price that is higher than the stock has ever been - EVER. If BUD was so undervalued, how come no one else - an American company, perhaps - stepped up to buy a company that was clearly for sale? IMO, this was a strong deal for all involved. BUD employees all have the opportunity to buy shares of stock (especially at the distributor level). If they weren't buying shares all along, they obviously didn't believe strongly enough in the company. If they have been buying shares all along, then they should have a handsome profit in their shares.

How is this a bad thing again?
#73
David_NYC
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RE: Budweiser selling out 2008/07/14 23:22:26 (permalink)
What about that lawsuit in Delaware?

June 26, 2008 - Anheuser rejects InBev's bid calling it "financially inadequate" and not in the best interests of its shareholders. Anheuser says it will deliver more than $750 million of annual savings in 2009 and $1 billion in 2010. Earlier, InBev said it had filed a lawsuit in the Delaware Chancery Court seeking to confirm that Anheuser's shareholders can remove without cause all of Anheuser's 13 board members.

From:
http://www.reuters.com/article/companyNewsAndPR/idUSL1426306520080714?pageNumber=1&virtualBrandChannel=0
#74
David_NYC
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RE: Budweiser selling out 2008/07/14 23:30:03 (permalink)
Another lawsuit article:

Anheuser-Busch filed a lawsuit on Monday, seeking an injunction to halt InBev's efforts to replace the board until it provides more information on the takeover offer, as well as InBev's operations in Cuba.

That suit, which was filed in the U.S. District Court in the Eastern District of Missouri, cited "an illegal plan and scheme by InBev, through a course of deceptive conduct, to acquire control of Anheuser-Busch at a bargain price."

Brief excerpt from:
http://www.iht.com/articles/2008/07/09/business/inbev.php

#75
The Travelin Man
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RE: Budweiser selling out 2008/07/14 23:58:02 (permalink)
Nothing will come of those lawsuits because they reached agreement on a sale price. If I agree to sell you something and you agree to buy it at an arranged price, there is nothing hostile about it. The lawsuits were just posturing. BUD wanted to squeeze more money out of InBev and InBev wanted to show that they were serious. Had they attempted to remove BUD's board, they would have been attempting a hostile takeover (a similar thing is going on right now with Yahoo! and Carl Icahn). This showdown never came to pass - and, thus, no hostile takeover.
#76
Jimeats
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RE: Budweiser selling out 2008/07/15 09:11:27 (permalink)
quote:
Originally posted by Tedbear

quote:
Originally posted by Rusty246

My nephew(lower on the totem pole)and his Father-In-Law(upper management) both work for Bud in Jax, they're jobs are safe. Of course there is a little favoritism here.
And hey, AB has chips and pretzels why not pizza?!?!?


...and according to one forum member, they also have steak! Hmmm...do you think that they supply those dodgy "Steakhouse Steaks" that Wal-Mart is advertising?
Quilty as charged. I had steak and beer for dinner on my mind.
But most importantly I got the point accross. Chow Jim
#77
Twinwillow
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RE: Budweiser selling out 2008/07/15 10:00:10 (permalink)
I heard there're selling those Clydesdales to Oscar-Meyer. Personally I think their full of baloney
#78
Jimeats
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RE: Budweiser selling out 2008/07/15 10:13:29 (permalink)
They are going to be replaced by Belgium Draft horses. Chow Jim
#79
MilwFoodlovers
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RE: Budweiser selling out 2008/07/15 10:17:30 (permalink)
Every time a business like this is sold, the press releases all say there will be no changes. 6 months to a year later, changes are made. A company must recoup their purchase price, plus make a profit. As big as Budweiser is they won't change its formula. But there will be RIF's somewhere to go with less efficient plant closings.
#80
leethebard
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RE: Budweiser selling out 2008/07/15 12:02:52 (permalink)
quote:
Originally posted by MilwFoodlovers

Every time a business like this is sold, the press releases all say there will be no changes. 6 months to a year later, changes are made. A company must recoup their purchase price, plus make a profit. As big as Budweiser is they won't change its formula. But there will be RIF's somewhere to go with less efficient plant closings.


Funny in today's papers,there's an open letter from Inbev saying just that...they're proud to be partnered with Budweiser...and Bud will always be Bud..no changes...I guess all that eemains to be seen.
#81
WarToad
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RE: Budweiser selling out 2008/07/15 12:18:17 (permalink)
Another thing, A-B Inc is such a large company, it'll be difficult to disciminate whatever job turnover happens from normal reactive market forces vs. InBev specific changes. We are in a difficult economic period. A-B has had market local layoffs before as an American run company. Even if there are InBev lead layoffs, it might very well be unfair to finger point when American leadership may have made the same decision under the same economy and market changes.

Food for thought. (or, drink, as it were.)
#82
Jimeats
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RE: Budweiser selling out 2008/07/16 06:36:54 (permalink)
Well it has begun. According to this mornings news the Theam Parks will be put on the block. The price of 5 bil. was bantered about.
Anybody want to buy a dalmation? Chow Jim
#83
WarToad
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RE: Budweiser selling out 2008/07/16 08:29:41 (permalink)
http://www.cnbc.com/id/25697435/for/cnbc

Theme Park selling is speculation of "what if" for cost savings, but I can see that. Not exactly beer business centered.
#84
Scorereader
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RE: Budweiser selling out 2008/07/16 08:33:06 (permalink)
quote:
Originally posted by Jimeats

Well it has begun. According to this mornings news the Theam Parks will be put on the block. The price of 5 bil. was bantered about.
Anybody want to buy a dalmation? Chow Jim


The only reports I've seen is that InBev is likely to sell the theme parks. I didn't find where the parks are actually up for sale yet.
#85
The Travelin Man
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RE: Budweiser selling out 2008/07/16 10:13:59 (permalink)
You guys really shouldn't be confusing people with facts. Speculation and rumors are always more exciting.

Further, just because someone decides to sell something, it doesn't mean that there will be a buyer - and the theme park business is pretty soft right now....just check the share prices of Disney (DIS), Cedar Fair (King's Dominion, Cedar Point - FUN), and Six Flags (SIX - which is trading at a whopping .79/sh). It is possible that InBev will divest this asset, but I don't see them giving it away for pennies on the dollar.

I am much more concerned over whether or not there will still be[url='http://www.msnbc.msn.com/id/25680892/']funny beer ads[/url]!
#86
Tony Bad
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RE: Budweiser selling out 2008/07/16 10:46:32 (permalink)
quote:
Originally posted by The Travelin Man


I am much more concerned over whether or not there will still be[url='http://www.msnbc.msn.com/id/25680892/']funny beer ads[/url]!


Perhaps yes? [url='http://www.youtube.com/watch?v=dHFJUrT23V4']Brahma[/url]
[url='http://www.youtube.com/watch?v=iEkg_hKAbvs']Stella[/url]
#87
Scorereader
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RE: Budweiser selling out 2008/07/16 11:44:44 (permalink)
quote:
Originally posted by The Travelin Man

You guys really shouldn't be confusing people with facts. Speculation and rumors are always more exciting.

Further, just because someone decides to sell something, it doesn't mean that there will be a buyer - and the theme park business is pretty soft right now....just check the share prices of Disney (DIS), Cedar Fair (King's Dominion, Cedar Point - FUN), and Six Flags (SIX - which is trading at a whopping .79/sh). It is possible that InBev will divest this asset, but I don't see them giving it away for pennies on the dollar.

I am much more concerned over whether or not there will still be[url='http://www.msnbc.msn.com/id/25680892/']funny beer ads[/url]!


the articles I've read, suggest a foreign buyer. Since the dollar is weak and the euro is strong, the theme parks could be a good investment for a foreign company, rather than a domestic company.

according to Paul Ruben, North American editor for the Britain-based Park World Trade Magazine, likely suitors for the theme parks might include Merlin Entertainment Group, based in England, or Spain-based Parques Reunidos. In bidding, those companies would have an advantage InBev enjoyed when lining up the cash to buy the whole company. A weakened dollar means American-based assets are discounted against foreign currencies like the euro and the pound.

#88
WarToad
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RE: Budweiser selling out 2008/07/16 11:57:20 (permalink)
I think this just overall plays into the changing geo-political world. It's not that the US is particularly losing power in the world, but there are a LOT of countries that are really stepping up and being big players in their own economic right. We can't leverage our economic might the way we once could. It's a changing world. We have to let go of that mindset of being the biggest fish in the pond and realize there's a fair number of little fish that have grown up and are standing shoulder to shoulder with us now.

If we truely believe in a free market and capitalisim, this is the way the ball bounces.
#89
The Travelin Man
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RE: Budweiser selling out 2008/07/16 12:00:49 (permalink)
I agree that foreign investors would be the most likely interested parties. My point in mentioning the publicly traded theme park operators was directed more at the health (or lack thereof) of the theme park industry, as a whole. With the economy in the tank, fewer and fewer people will plunk down $50-60-70 for a theme park ticket. Disney's numbers don't appear to be affected as much yet because they are a huge draw for Europeans this time of year, but these second-tier companies will feel a pinch soon (and, as you can see, many have already) as people continue their personal belt-tightening. Given the poor expected performance going forward, A-B's theme park assets may be worth more to InBev if they can cut some costs and wait for an economic turnaround - say one year.
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