Brewery group AB InBev has recorded its strongest volume growth in over five years. The company credits three strong global brands and a continuous premium strategy.
Encouragement
In the second quarter of 2019, AB InBev sold 2.1 percent more beer, which is better than expected. Turnover increased by 6.2 percent, reaching 13.9 billion dollars (12.5 billion euros), and gross profit even improved by 9.4 percent. The brewery group is pursuing more expensive premium beers and that move has paid off. The ‘High End Company’ – the department which commercialises the group’s specialty beers – grew by almost 20 percent.
AB InBev’s three global brands are doing well. Turnover grew by 8 percent, and even 11.3 percent beyond the domestic markets. Budweiser – which is now making its entry in the Netherlands – saw 5.6 percent growth outside the US, revenue from Stella Artois increased by almost 12 percent and Corona grew by 23.7 percent outside of Mexico.
Despite a shrinking marketshare in the US and declining profits in Brazil, the company expects to maintain a strong growth rhythm throughout the full financial year. These good figures are an encouragement after the recent disappointment over the cancellation of the IPO in Asia, which would have been an opportunity for the concern to lose some of its debt load. AB InBev did manage to sell its Australian subsidiary for a nice amount and other divisions are for sale in Australia, Korea, Guatemala and Honduras.
