AB InBev grows on premiumisation trend

Premiumisation and expansions into new product ranges were partly responsible for a successful quarter for AB InBev, maker of Stella Artois and Budweiser, as these provided a valuable defence against pandemic-induced declines in some areas of the world.

Why it matters

The world’s largest brewer is back to beating pre-pandemic numbers as buyers traded up to more premium brands, which in turn drove profit. Premium brands, which are around 30% of total revenue, delivered 11.3% revenue growth in the quarter.

It indicates that buyer preferences may be sticking around having moved towards premium offers during the pandemic.

Takeaways

• Volume sales were up 3.4% in the quarter ending September 2021, but revenues grew 7.9%. Underlying profits were up too at 6.1% growth.
• Brazil has been an important hotspot with 15.3% revenue growth in the quarter. A microcosm of the global whole, not only did Brazilians buy more beer, they bought more expensive beers.
• AB InBev was able to push ahead in almost all other markets to make up for an Asian decline where it was harder hit by lockdown measures. 
• Beyond Beer – the segment that includes the fast-growing hard seltzers and canned cocktail products popular with young people – is growing fast at 1.8x the category in the US (where it is arguably most advanced).

Sourced from AB InBev