InBev spends to win market

Carlos Brito spent traveling in private jet. And there are more signs that the Chief Executive of InBev, known for hand-closed the company''s spending began to soften with the costs.
The brewery''s profit in the fourth quarter was below expectations, in part because the company spent more on advertising and promotions to try to get it out of their apathy main brands in the United States. And also to encourage American consumers to buy more special beers.
The results haven''t improved: sales in the us fell by 1.1% in the fourth quarter, prompting the profit, excluding extraordinary items, and acquisitions in the region falling 7%. Still, it wouldn''t hurt to AB InBev relax his iron hand on the margins to try to get more growth with the more expensive brands.
AB InBev, known for performance-based culture, nothing is proud with its problems in the us. So unusual for a company famous for root out costs, spending to reverse the losses of market share. It was necessary to reinvigorate brands like Bud Light. AB InBev also tries to climb the stairs to more sophisticated segments, such as craft beers, whose popularity promotes more growth, with higher prices. The marketing investments soared 9.4% in 2015 and the forecast for this year is to increase between 8% and 12%.
Investors need not fear that the hands-closed the AB InBev finish turning but the profligate yaw shows that in fact it takes more to administer a brewery than just control costs. The change has implications for the proposed acquisition by AB InBev, SABMiller''s US $ 100 billion.
When the plans to create the megacervejaria were announced in November, the goal was to achieve annual savings of $ 1.4 billion-equivalent to 9% of sales of SABMiller. The promise was smaller than in previous acquisitions of AB InBev, in part because SABMiller is best administered and operates in more complicated markets.
Some shareholders had hoped that AB InBev had underestimated the synergies and that surprised to deliver more than promised. This helps explain why the company''s stock performed better against the other since the signing of the agreement.
The difficulties of the AB InBev USA, the challenging conditions in China and the foreign exchange headwinds in Brazil and Mexico are more a display of why the company needs the SABMiller-especially for its high growth in Africa. Even consumers in emerging countries, however, are beginning to show a taste for more tasty beers, so that the increase in spending to attract beer drinkers enfastiados common in cities like Boston, for example, may soon also become necessary in Botswana. Special products also require more expensive ingredients.
Meanwhile, the conversion of sales in Brazilian reais or Mexican pesos for dollars that some costs are out of reach. The cost of sale of AB InBev rose 3.9% in 2015 and the forecast for this year is one-digit percentage increase in medium, reflection of foreign exchange impacts and of spending on special marks.
The transaction with SABMiller''s 60% funded and seems to be almost fully stitched, according to analyst Duncan Fox, Bloomberg Intelligence, except for regulatory barriers in China. The AB InBev envisions making purchase in the second half.
The promised savings do not appear to be threatened, but the goal increasingly appears to have been a prudent expectation of Directors; and nothing but. Anyone who expect another round of drinks thanks to the acquisition may be disappointed.