Comment on The world's largest beer maker should be worried about its survival

The world's largest beer maker should be worried about its survival

YouTube/Scott TaipaleBudweiser, the so-called King of Beers, may be on its last kegs. It may seem odd to picture the demise of the flagship brand of the world’s largest beer company. But Anheuser-Busch – the U.S.-based unit of AB InBev – is following in the footsteps that led to the irrelevance of a host of other once-dominant companies – Eastman Kodak, Woolworth’s Department Stores, Bethlehem Steel and Blockbuster Video, to name a few. While AB InBev shareholders are cheering each move to boost short-term profitability by snapping up other companies – including the US$110 billion takeover of rival SABMiller – CEO Carlos Brito may be unwittingly digging Anheuser-Busch’s grave by ignoring long-term trends. How could the rational pursuit of profits and growth through acquisition mean the beginning of the end for Anheuser-Busch? This, we would argue, is a case of disruption theory in action.

 

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