WHAT'S ON BRITSKE LISTY

Don't touch OUR Budweiser!

27. 7. 2010 / Fabiano Golgo

None of the five questions I sent by email were answered, though, so I decided to go ahead and try to get the answers from those close to him.

First, I provoked his secretary, saying that Czechs would also be hurt in their national pride if Brito refuses to give some light on his plans about "České Budějovice's Budweiser". She immediately reacted, saying that Brito actually had already said that he is not yet sure about the issue between the two Budweisers, but that he respects the right of Czechs to fight for it in court.

She was not willing to react to any other inquiries, so my next try was Francisco Sá, a Brazilian who was picked personally by Brito to head the Central and Eastern European wing of InBev.

He claimed to not know what is in Brito's mind when it comes to the feud over the brand, but confided that the decision would most probably be decided -- as everything else under his boss' administration -- the most economically sound way.

Does that mean a settlement?, I wanted to know. "Not necessarily, but why not?", he countered me. What about buying Budvar? "Well, that is another possibility, but the Czech premier announced that, if at all, it may only become actual in 2010", he said, at the same day of the announcement by Mirek Topolánek -- which shows that he is following closely the developments around the potential sale of the original Budweiser. But he wanted to make clear that this is just a rhetorical speculation, for he does not want to get in trouble with his boss, well known for his no-nonsense style of administration.

Bernardo Pinto Paiva, another Brazilian who is InBev's President for North America, revealed at least what he thinks will be Brito's opinion on the matter of the two brands co-existing. Paiva said that Brito certainly would like to see Budweiser as a global beer and that markets like China, Germany and Portugal are very important, but that what will be decisive is whatever will be the most profitable option. Paiva insisted he did not want to be quoted saying anything official about InBev and Budweiser, not only to not get in trouble, but also because he says that he sincerely does not know what are Brito's plans on this specific issue and confessed that "probably not even he himself knows what will be his position on the Czech Budweiser, because there are so many more urgent issues to deal with now".

Did Brito ever taste the Czech beer, I was curious to know. "Yes, all of us did, it is a great beer, but maybe too strong for mainstream commercial success", to which I protested saying that I never met someone who did not like Czech beer. "I understand that, Czechs are well known for their great beer, and not only Budweiser, but the public all over the world is used to a softer beer", explaining that Bud Light is the most consumed beer exactly because of that. He hinted that Budvar is seen by them as a beer for special moments, not for everyday drinking, "more like Stella Artois than Beck's", he compared.

A manager who works directly with Felipe Dutra, InBev's Chief Financial officer, who asked not to be identified, confirmed that the Budvar problem has not been discussed yet, thus all options are going to be considered. "Even buying Budvar?", I asked. "That is something not possible before 2010", he spilled out. "It is very interesting that you are not the only one from InBev's management who seem to be very up-to-date on the Budvar potential sale dates", I provoked. "Shouldn't this be taken as a signal that InBev is considering that option instead of spending a lot of money fighting Budvar in court?", I bombarded. It took him a few seconds of silence before coming up with "whatever will make the most sense economically may end up being our choice. I imagine that to buy Budvar may cost more than the legal fees involved in fighting it, but at the same time we have to count the potential gains in markets where we have restrictions. In the end we will take in consideration a lot of vectors before making any decision. But now, there is nothing really going on that I know of".

Realizing that nothing official would be revealed about InBev's intentions over the fight for the use of the Budweiser brand, I tried to find out something about the mysterious man who will make that decision. According to a former colleague from the days before 2005, when Brito worked for InBev in Canada, his favorite "everyday" beer is Bud Light, but for special occasions he drinks Stella Artois. Nevertheless, he drinks very little and mostly on weekends. Brito likes his beer very cold, though. He is not very fond of the temperatures which beers are served in Europe.

The 5 unanswered questions:

1 -- What are InBev's plans about the original Budweiser, from Czech Republic?

2 -- Will InBev consider buying Budvar if it goes on sale?

3 -- Which of the two Budweisers -- the Czech and the American mutations

-- you think has the best taste?

4 -- Would you consider the co-existence of both brands in some markets?

5 -- Is it true that InBev is forming a team with Czech lobbyists to better its potential position in possible future negotiations about Budvar?

Who is Carlos Brito?

Born in 1960 to a middle class family in Rio de Janeiro, Brito studied Mechanical Engineering at a public university in Brazil. In the 1980's he used his father's acquaintances to get to former tennis player turned banker Jorge Paulo Lemann, the fifth richest man in Brazil, and convinced him to lend him money for his MBA at the University of Stanford. Lemann, a former Davis Cup and Wimbledon champion, found Brito's courage to ask him such a thing so intriguing that he agreed, but told him that eventually he would want to make use of his protegé's talents, sponsored by him. After finding jobs at Daimler-Benz and Shell Oil, Brito went to work, in 1989, for AmBev, the biggest brewery in Latin America, which in 2004 changed its name to InBev, after merging with the Belgian company Interbrew. Between 1992 and 1997 he made his bosses satisfied by managing to great success the soft drinks operations of the Brazilian company. After that he took over the beer operations of AmBev until 2001. Then he took care of the Human Resources department until 2004, when he became the General Director of AmBev. He was subsequently sent to command the North American investments of AmBev, being in charge of the not so successful Labatt beers. Brito replaced John Brock as the CEO for InBev at the end of 2005. Married, with four children, non-smoker, Brito is called the Napoleon Bonaparte of business in his homecountry. His favorite football team is Flamengo, but he also likes FC Barcelona. His all time favorite football player is Garrincha, currently he admires Argentinian Carlos Tévez, British Robbie Keane and Portuguese Cristiano Ronaldo.

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