“...... Beer companies remain helpless against the hops infection, which scientists speculate is most likely linked to climate change. Compared to other climate issues such as food insecurity, storm damage and freshwater shortages, the issue of beer may seem insignificant. But this threat of supply, where people have been enjoying beverages for thousands of years, shows that climate change will affect all of us, not just people in India or African countries, but even consumers in developed countries will not be able to escape. ”

“...... This year is the World Cup year, during the World Cup, beer sales in various places tend to rise in a straight line, but this year's beer extreme events have made the world face a 'beer shortage', and fans all over the world may only be able to hold mineral water in their hands to cheer. ”

—The New York Times's leading socio-economic commentator, O'Hughes.

"No, O'Hughes was a little wrong. There are still countries where beer production will not be affected, such as China, New Zealand and other countries. But in our main markets, a reduction in beer supply will be inevitable. If no measures are taken, our group may reduce production by 50% by June. ”

"Our competitors are no exception. Heineken and Carlsberg both started to reduce production within a week when there was also a large area of hops in Germany, while the situation in Müller in South Africa was slightly better, and the local hops were in good condition, but not enough to meet the production demand......"

"Anyway, gentlemen, we're in big trouble. ”

Brito, president of AB InBev, rolled his lips and gave a general introduction to the situation in the board meeting.

There was silence in the conference room.

In fact, as soon as the problems of beer production are exposed, the beer companies have already "risen first to respect", and the capitalist world is so realistic.

But it's not just consumers who are struggling to accept large price increases, but also beer companies.

Quite simply, one of the reasons why beer has become the world's most popular alcoholic beverage, far ahead of wine and spirits, is its affordable price.

Price increases won't necessarily allow beer companies to increase revenue, but they will certainly result in fewer consumers choosing to drink beer.

Of course, now there is no guarantee of supply, and whether consumers will decrease or not is not the focus of consideration.

"Is it possible that this incident was artificially created?" Soon, a director asked. Some countries are in trouble, while others have unique scenery, which is easily reminiscent of "conspiracy theories" or something.

"So far, at least, there is no evidence to prove that it is artificial. The hop-growing regions of North America and Europe, where a large area of the disease occurred, have suffered severe drought and other climatic effects in the past few years, which is why experts speculate that the lesions occurred, while the hop-producing areas such as China and New Zealand that have not been affected are all relatively closed production environments...... "Brito's expression is full of tiredness.

The industry is in the midst of its most difficult period in 50 years.

Who would have thought that an industry with an output value of more than $500 billion would be planted on a small industry with a volume of less than $1 billion. You know, before this "beer shortage" incident that shook the world, many people had not even heard of the term "hops".

"Don't we have hops in stock, not enough to deal with this hop supply shortage?" another shareholder asked.

Brito raised his forehead, and said bitterly at the corner of his mouth: "In the past few years, due to the drought climate, hop production in the United States has not been ideal, and our inventory has been depleted. The hop inventory that is okay now is even less optimistic than everyone imagined. ”

Although a beer giant like Budweiser uses much less hops than craft beer. However, Budweiser's volume is large, accounting for one-fifth of the world's beer production has reached an unprecedented one-fifth, almost the same size as the second and third, and it is cool to occupy the market, but the demand for hops is also terrifying.

After lighting his beloved Cuban cigar, Lehman, the largest shareholder of AB InBev, his face suddenly became solemn, he thought about it, and asked, "Britto, what do you suggest?"

Britto cocked his finger: "First of all, we want to stop the acquisition of Miller in South Africa." ”

"No, I can't. Immediately, a shareholder stood up: "We have done so much work, we shouldn't stop the merger at this time." There are very few powerful international beer companies left, and although we are in trouble, isn't it difficult for South African Miller, and if it is executed properly, it may be possible to win this biggest competitor at a smaller cost. ”

Britto glanced at the interested shareholders and sighed deeply in his heart - accustomed to whale swallowing big fish eating small fish, these shareholders are really spoiled. They simply don't understand that the difficulties encountered by AB InBev are not short-term. Now is simply not a good time to open up a new battlefield.

In other words, although they are shareholders, many people here do not know as much about the beer industry as outsiders in addition to reading financial reports.

He had to point out: "I know what Your Excellency said, but the beer industry is doomed to a recession, and our financial pressure is too great. ”

"We can ...... through financing" The speaker was not dead hearted, but his words were interrupted by Brito: "This is the news that I just received. ”

"Our share price is down another 10%, and at the same time, credit rating companies are already concerned about our debt stress. Investors want us to repair our balance sheets to deal with mountains of debt, not to make it even higher. ”

Opposing shareholders were speechless.

AB InBev expanded aggressively and quickly became the leader of the international beer industry, but the side effects began to show – as of the end of last year, AB InBev had a debt ratio of more than 250%, and even in good times, the company's tight balance sheet left the company with little money to invest in the future. This is not to mention the expansion of debt at a time when the industry is in recession.

Now, resuming production and reducing losses is the only focus.

Lehman snuffed out his cigarette butt: "So, if we go all out to resume production, how long will the hop inventory last?"

Britto cautiously gave an answer: "It won't be more than four months at most." ”

"Can't be replenished through procurement?"

"It's hard, we can't be sure which hops are not infected. The maximum source that can be identified is controlled by ...... In the hands of the Chinese Jiagu. Britto gritted his teeth.

"Then let's talk to the Chinese. ”

Brito's body shook: "Chairman, you should know, what do they want?"

"But the key to breaking the game is in their hands, isn't it?" Lehman said slowly, standing up slowly.

......