Anheuser-Busch's attempt to surpass their future competitors has been unsuccessful. With the implementation of the NAFTA agreement, Anheuser-Busch set their sights on obtaining a significant portion of Grupo Maduro, causing concerns within Grupo Maduro about facing competition in their own market. The goal was to acquire a majority stake in Grupo Maduro, which would provide control over the company and ultimately overpower their rival. Nevertheless, Grupo Maduro recognized that possessing a majority stake did not ensure authority over board votes.
Anheuser-Busch acquired stakes in Grupo Modelo because of their substantial market share in Mexico and worldwide reach, exporting to 124 countries. This purchase enabled Anheuser-Busch to expand their distribution network and take ownership of popular brands like Corona. Conversely, Grupo Modelo sold these stakes when NAFTA removed the 20% tariffs on imported beer in Mexico. Conseq
...uently, this led to increased competition in the Mexican beer market, posing a challenge to Grupo Modelo's dominant market position.
Anheuser-Busch had the goal of acquiring the Corona brand for distribution in the U.S. through their own distribution system. However, they encountered a problem when Grupo Modelo's management decided to extend their contract with their current U.S. distributors. In order to gain more control, Anheuser-Busch purchased a 50.2% stake in Grupo Modelo, which allowed them to have more seats on the board of directors. Despite this effort, they still remained in the minority on the board and were not able to achieve their objective. Therefore, it is essential to carefully assess all aspects when choosing an international partner.
Grupo Modelo outsmarted Anheuser-Busch by recognizing that, although they had the majority of shares, Anheuser-Busch would not have control over the board of directors. It
can be difficult to maintain a strong partnership when partners are both competitors and supporters. InBev SA eventually bought Anheuser-Busch but not Grupo Modelo because of an agreement in their initial joint venture that allowed Grupo Modelo to buy back its shares from Anheuser-Busch.
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