The Decline of The First Beer Family

Anheuser-Busch began brewing Budweiser beer in 1876. The brewing process takes 30 days, and once brewed, the beer can be kept in a cool place for 110 days. Adolf's taste and judgment were correct, and Budweiser quickly became the king of sales when it was introduced to the American market. At its peak, Anheuser-Busch's Budweiser had a 50 percent market share in the United States -- that is, one out of every two bottles of beer sold in the United States at the time was Budweiser.

Handed down slowly

By the beginning of the 20th century, Anheuser-Busch had sold a million barrels of beer, vastly outselling its competitors and becoming the largest beer company in the United States. And Adolf Bush himself became an icon in his hometown. The Adolfs' 50th wedding anniversary in 1901 became a St. Louis holiday, with a huge party at the local stadium that included 40,000 free bottles of beer and a three-dimensional gold card for the Adolfs.

1913 Adolf W. Bush died at age 74 and his son August became the company's new president. Not long after August took office, the First World War broke out in full force. Then, from 1919 to 1933, Anheuser-Busch faced 14 years of Prohibition and the Great Depression. It was one of the most difficult times in Anheuser-Busch's history. The company was forced to stop brewing beer and make a living by producing soft drinks such as wort and ice cream, as well as products related to the beer industry such as dough and yeast.

August guided the company through its most difficult times, and when he died the year after Prohibition was repealed, his son, Adolf Busch III, took over as president.

Unlike his father, Anheuser-Busch III led the company through World War II, but during World War II, Anheuser-Busch made a series of major advances -- first breaking a production record of 2 million barrels; For the first time, beer in bottles and cans surpassed beer on tap. At the same time, the company opened 12 new breweries and launched several new brands. In addition, during this time, Anheuser-Busch began to diversify into home entertainment, real estate, refrigerated truck transportation, and other areas.

In 1946, George W. Bush III died and his brother, August Adolf W. Bush Jr., became the new president. During the younger Bush's tenure, he refocused the company on beer making, building new breweries, developing new beer brands, and setting up the Aluminum Can Manufacturing Company to ensure a supply of cans to hold beer. Later, Anheuser-Busch became the second largest manufacturer of aluminum cans in the United States.

In 1993, Anheuser-Busch entered China by buying a 5% stake in Tsingtao Brewery (600600), which was publicly offered on the Hong Kong stock market. In 2004, Anheuser-Busch bought Harbin Beer Group, China's fourth-largest brewery, for $739 million; A year later, Anheuser-Busch's strategic investment in Green Beer rose to 27%, making it the largest shareholder after Qingdao State-owned Assets Supervision and Administration Commission (later transferred to Xinhuadu (002264) Group). At present, Budweiser has become the number one selling foreign brand in the Chinese market.

The last

In 2002, at the age of 65, Auguste III decided to step aside. In a surprise move, he did not hand over the presidency to his son, August IV, but made Patrick Stokes, a foreigner, president, and CEO of the company. This is the first time in the family's history.

Some say the fact that the late August IV was still unmarried and had a reputation as a "party guy" may have given his father and the board pause. However, Patrick is just a transition. Blood is thicker than water. Four years later, when Auguste III officially retired, the scepter of the family business eventually fell to Auguste IV.

Augustus IV was not an incompetent playboy. He had worked in the family business for nearly 20 years and had worked in every position including brewing, packaging, shipping, marketing, business planning, and sales. In addition to the production line and negotiating table, he also has a talent in advertising, his personally directed commercials have won the "Super Bowl Advertising Award", "Cannes International Advertising Festival Silver Lion" and other awards.

Unfortunately, no one can dominate forever. In 2003, the world's fourth largest beer group, Interbrew of Belgium, merged with AmBev, Brazil's largest beer giant. Anheuser-Busch lost its position as the industry's largest beer company for many years to the newly born InBev. Five years later, Anheuser-Busch accepted the new boss's offer and was acquired by InBev. The takeover, valued at $52 billion, is the biggest ever in the global beer industry. Upon completion of the acquisition, Anheuser-Busch became a wholly owned subsidiary of InBev, and August IV served only as a director of InBev and was not involved in the management or operations of the company. As a result, the Anheuser-Busch family has largely exited the beer business from which it made its fortune and made its name.

Although most shareholders, including Buffett, think the deal makes sense for both sides. But "whether or not he made the right decision, he will be remembered as the man who bought Budweiser." A biographer tells of August IV's predicament.