In which fields may Anheuser-Busch diversify? Why?

Question

What will be an ideal response?

Answer 1

Besides expanding its beer business, there are several opportunities for A-B to diversify.
A-B has excellent marketing skills and financial resources. Therefore, it could market products that require such skills and resources. There is the possibility of diversifying into the wine and spirits market. A-B already took the first steps by starting a venture with a partner, La Mont Winery Inc. Further, A-B might enter the wine-cooler
business, which showed a strong growth potential recently. Wine coolers are also likely to be a substitute for beer, and therefore it is important to keep pace with the market shifts. Also for this reason, diversification in other “drink” businesses might be a good idea. One possibility would be to develop a product to compete with “Club Cocktails.”
Briefly, A-B should have a close look at possible product innovations.
A few years ago, A-B diversified into the snack food business. There it is able to make use of its distribution strength. Beer and snack foods are often consumed with each other. For this reason, it makes a lot of sense to sell snack foods in the same locations as beer.
A-B could integrate forward and start selling its beer in certain kinds of pubs. These Anheuser-Busch pubs might attract special customers who might not be A-B beer drinkers yet. It would also give A-B more control over its distribution.