E-Malt.com News article: United States & Belgium: Anheuser-Busch InBev chooses New York for setting a new office

AnheuserBusch InBev announced on January, 16 its intention to establish a functional management office in New York to better support the needs of the combined global organization.

“This office would have an operational focus supporting the business in the implementation of the Company’s strategy under the direction of the Global Headquarters and centre of strategic decision making in Leuven,” the world’s largest brewer posted on its website.

According to the company, the creation of Anheuser-Busch InBev will generate significant growth opportunities from leveraging the company’s combined brand portfolio, including its global flagship brands Budweiser, Stella Artois and Beck’s, its leading global distribution network and by applying best practices across the new organization. In addition, over 40% of the newly combined company’s earnings are now generated in the United States, which has become the company’s largest market.

The establishment of an office in New York would enable management to better support the realization of these opportunities and day-to-day management of the business. The office would host functional management heads together with members of their marketing, finance, people, supply and legal teams.

Anheuser-Busch InBev is a Belgium based company listed on Euronext Brussels. Leuven is home to the company’s Global Headquarters and the company’s centre of strategic decision making and primary office.

Critical activities in Belgium include all strategic decision making and shareholder related activities. This includes all shareholders’ meetings, the majority of the regular meetings of the Board of Directors, of the Board Committees that directly support the Board of Directors, and of the Executive Board of Management. The CEO, CFO and all global functional heads will also maintain an office in Leuven.

Chief Executive Officer Carlos Brito and Chief Financial Officer Felipe Dutra will split their time between New York and the company’s Leuven, Belgium office, spokeswoman Gwendoline Ornigg said. As many as 89 jobs will be cut at the Leuven “global headquarters and centre of strategic decision making.” She said the office will still have more than 70 people.

The company said it “remains fully committed” to its other offices and breweries in Belgium, where it will continue to employ around 2,900 people. The New York “functional management office” will have about 110 staff, Ornigg said.

“It’s logical that they would look to get a good grip on the business there,” Wim Hoste, an analyst at KBC Securities in Brussels, said. “The U.S. is far more important to them now. I don’t think it’s the precursor of a major management move, though.” Hoste rates the company’s shares “buy.”


16 January, 2009