SAB was not the only brewer seeking to expand its global presence. Anheuser-Busch’s experience in Japan provided a case study in entry mode options, and highlighted the advantages and disadvantages of the joint-venture approach. Access to distribution is critical to success in Japan; Anheuser-Busch first entered that market by means of a licensing agreement with Suntory, which at the time was the smallest of Japan’s four top brewers.
Although Budweiser became Japan’s top-selling imported beer brand within a decade, Bud’s market share in the early 1990s was still less than 2 percent. Anheuser-Busch then created a joint venture with Kirin Brewery, the market leader. Anheuser-Busch’s 90 percent stake in the venture entitled it to market and distribute beer produced in a Los Angeles brewery through Kirin’s channels. Anheuser-Busch also had the option to use some of Kirin’s brewing capacity to brew Bud locally.

For its part, Kirin was well positioned to learn more about the global market for beer from the world’s largest brewer. By the end of the decade, however, Bud’s market share hadn’t increased and the venture was losing money. On January 1, 2000, Anheuser-Busch dissolved the joint venture and eliminated most of the associated job positions in Japan; it then reverted to a licensing agreement with Kirin. The lesson was clear: In Japan, it often makes more sense to give control to a local partner via a licensing agreement than to make a major investment.

Questions
1. Why are AB InBev, Heineken, and other global brewers targeting emerging markets such as Vietnam?
2. Is the brewing industry local or global?
3. Why do so many licensing deals, mergers, and acquisitions occur in the brewing industry?