USA TODAY International Edition
THE NEW KING OF BEER
AB InBev CEO Carlos Brito strives to create ‘ a truly global business’ with $ 107B SAB Miller purchase
The world’s king of beer believes in dreaming big.
With the $ 107 billion potential combination of his Anheuser Busch InBev and London- headquartered top rival SAB Miller, Carlos Brito is on the verge of running a brewing empire that would sell more than 30% of all the beer produced worldwide.
His approach to business is less global beverage titan and more tech start- up CEO. Instead of using a luxurious Csuite, the 55- year- old Brazilian CEO works from a large table shared with his firm’s vice presidents. He has no corporate jet. No company car. No personal assistant of his own. And no, not even any free beer.
The transaction announced Wednesday would bring together the Belgium- based maker of Budweiser, Corona, Stella Artois and Becks with the London- headquartered rival whose brews include Pilsner Urquell and Peroni. The combined company would have a large presence in developed markets in the U. S. and Europe, as well as growing markets in China, Latin America and Africa.
The deal is expected to close in the second half of 2016, provided it wins shareholder approval and passes what’s expected to be tough regulatory scrutiny in the U. S., Europe, China and elsewhere around the globe.
As part of the transaction, AB Inbev said it would sell SABMiller’s 58% stake in MillerCoors to Molson Coors in a cash deal valued at $ 12 billion. The divestiture reflects an effort to appease regulators concerned about the combined giant’s market domination.
“We’ve admired this company for a very long time,” Brito said during a conference call about the deal. “Together AB InBev and SABMiller create a truly global business.”
The proposed mega- transaction embodies the gospel of major goals Brito has preached in public appearances.
“We say our dream is to be the best beer company in a bet- ter world,” he told a Stanford Graduate School of Business class in 2008, during one of several returns to the academic center where he got his MBA.
“And that’s measured by profitability,” said Brito. “We say that internally and externally, because we like the pressure that that puts ... on us.”
AB InBev is known for its Dream- People- Culture mantra — having major goals, hiring employees who share the dreams and working in a nofrills- few- perks meritocracy. Not everyone buys in. The company cut approximately 1,400 workers, or 6% of its U. S. workforce, soon after its 2008 merger with the maker of iconic beer brand Budweiser.
“The first layer of management left day one,” he told a Stanford class in 2010, recounting his visit to the St. Louis headquarters of AnheuserBusch after the deal was signed.
“It was great, because then we promoted a lot of new people that had been waiting for that opportunity,” said Brito.
The CEO, who worked at Shell and Daimler Benz before his brewing career, says instead of funding perks, AB InBev sponsors top sports events that connect with customers.
“Egos are very downplayed” in the firm’s culture, he says.
Not that those who boost profits aren’t rewarded.
“We always say, the leaner the business, the more money we’ll have at the end of the year to share,” Brito said at his 2008 Stanford appearance.
“Our dream is to be the best beer company in a better world.” Carlos Brito, Anheuser- Busch InBev CEO, in 2008 speech