Anheuser-Busch InBev, announced its plan to invest $2 billion into its operations in the Unites States. The world’s largest brewery, AB InBev is looking to tackle declining volumes and shrinking market share of its flagship product Budweiser.
The company recently purchased its closest competitor, SABMiller for almost $100 billion.
They said that the $2 billion initiative is one of the largest capital investment programs in the history of the US beer industry. They stated that they will be putting close to $500 million into the company this year, and the rest of the $2 billion by the year 2020.
Plans for the money include over $200 million on brewery and distribution projects in 2017, with $82 million to improve the national supply outlets and to build distribution warehouses in Los Angeles and Columbus, Ohio.
In addition, they hope to expand production of aluminum bottles and begin to make a larger variety of beers through investment in its 21 US breweries. Adding non-alcoholic drinks are also on the to-do list, with products such as the ready-to-drink tea Teavana, which it is making together with Starbucks.
Despite the fact that climate change has enormous economic consequences, only a handful of US business schools which allow students to focus their studies on sustainability.
Recent closures of facilities owned by Nestle and Coca-Cola, as well as an imminent coffee shortages on the horizon, which will disrupt companies like Starbucks, has still not sent the message to business schools that climate change is an issue that needs addressing by the business community.
Climate change affects every resource used by business: agriculture, water, land, energy, and workers and the economy. No business will be immune from the transformation caused by climate change. Some observers believe that without radical change in our business models climate change will lead to disastrous consequences.
The scientific consensus is that the best way to avoid disaster is to keep the average global temperature increase to only 2 degrees Celsius. In order to reach this goal emissions of greenhouse gases need to be limited to 1 trillion metric tons which will mean a 49 to 72 percent reduction globally from 2010 levels.
Clearly business needs to take a leading role in the reduction of gases that contribute to climate change, but the schools that are educating our future entrepreneurs and business leaders are not taking the issue seriously enough.
One study looked at 51 schools out of the hundreds in the country. It found that when a sustainable business course is offered, it is usually just an elective. Just a few business schools offer minors, majors, certificates or graduate degrees in sustainability business and /or management.
The 51 schools that were chosen for the study are leaders in the study of sustainability. The vast majority of schools do not offer any kind of coursework on the subject. The study showed that even the best schools for sustainability are doing a bad job preparing students for the future that is coming.
One of the ways to combat waste management issues in America is to focus on food waste. Every day, American families throw out more food than you can possibly imagine. Restaurants, as well, dispose of leftovers, and even farmers throw out food that is imperfect or not suited for their use.
In the US, about 30-40% of all food isn’t eaten. Approximately 95% of that food ends up in landfills.
Many states and many companies are trying to work with states to solve these problems. Some states like California, Connecticut, Massachusetts, Rhode Island and Vermont have already restricted how much food and other organic waste can be thrown away. Maryland, New Jersey and New York are currently considering similar laws. Places like the West Lake Landfill are also always looking for new and creative ways to work.
There are other very creative ways that states are offering incentives. Some states are offering tax breaks to farmers and small businesses that donate food rather than throw it away. Some large farming operations and caterers have partnered with homeless shelters to enable the shelters to receive the food that isn’t used at the end of a harvest or during a celebration party.
Similarly, some restaurants will offer a discounted rate to customers when they put out food that is less physically appealing or that has passed the “sell by” date. Others have even created apps that will connect restaurants and stores with people who are interested in the surplus.
Certainly, there is going to be waste, but there are creative ways to help society to limit that waste and to cut down on the waste as much as possible.
According to Politico, two White House officials stated that a draft order to withdraw from NAFTA has already been submitted for the last stages of review, and could be released by the end of this week, or early next week.
The order was written by Trump’s head of the National Trade Council, Peter Navarro, in corroboration with the White House chief strategist Steve Bannon. It is still unclear what the order states, but the effect on trade can be predicted by an examination of the top 20 exports arriving from Mexico to the US.
In January Capital Economics’ chief emerging markets economist Neil Shearing published a chart in a memo to clients graphing the top 20 exports from Mexico according to their 2015 US dollar value.
About 25 percent of Mexico’s total exports to the US, by far the largest slice, came from the auto sector, valued at about $80 billion. The next three items are electrical components, food, and computers, together valued at about $55 billion.
“The upshot, then, is that targeted measures imposed on the vehicle, electronics, and food and beverage sectors would hit Mexico’s economy especially hard,” wrote Shearing. “Similarly, in the event of a blanket tariff across all sectors, producers in these areas would be among the hardest hit.”
In wake of the reports that Trump is on the verge of pulling out of NAFTA the peso is crashing, down over 2.2 percent at 19.2704 as of 12:53pm Wednesday afternoon.
Oil prices are performing a precarious balancing act as US oil production increases simultaneously with reduction in output from OPEC and other oil producers.
The price for Benchmark crude futures hardly budged from $55.86 a barrel at 6:57am. Yesterday’s price of $56.65 was the high for the month, just before it shrunk slightly today.
Only 6 cents separated today’s and yesterday’s price for US West Texas Intermediate crude futures, falling slightly. Yesterday’s price was the highest a barrel had been since March 7, at $53.76.
The weekly Energy Information Administration (EIA) report points to US oil output rising, while also showing that US stockpiles at the crude hub in Cushing, Oklahoma went up by 276,000 barrels during the week which ended on April 7.
Other data, however, showed a surprising fall in overall US crude inventories. Last week inventories fell by 2.2 million barrels while imports went down by 717,000 barrels per day.
“We saw a bit of a reversal in oil prices (on Wednesday) and it came despite some positive news,” chief market strategist at Sydney’s CMC Markets. “It does appear that there is bit of focus on the data that came alongside inventory numbers which showed further increase in U.S. production.”