Like its Dutch rival Heineken, AB InBev is dealing with a very weak beer market in China. Still, the world’s largest brewer manages to post higher-than-expected profits.
Alcohol-free sales boost
The brewer of Budweiser, Stella Artois and Corona increased its second-quarter sales by 2.7% to 15.3 billion dollars (14 billion euros). Operating profit even rose 10.2 % to 5.3 billion dollars (5 billion euros), despite beer sales falling 1.3 %. As the “non-beer” category did a bit better, the total volume sold only reduced by 0.8 %.
AB InBev is especially struggling in China, where revenue fell 15.2 % and volumes fell 10.4 % – just like Heineken had published disappointing Chinese figures earlier this week as the economy slows down and the weather conditions were particularly unfavourable. In the United States, AB InBev’s market share remains stable: its top brand Bud Light still has not fully digested boycotts by conservative Americans, but the Michelob Ultra and Busch Lite brands are growing well. The brewer reported strong performances in Brazil, Colombia and Mexico. In Europe, AB InBev said it outperformed the weak market with a slight volume growth.
Non-alcoholic beers continue to grow, the company still reports. Their sales went up 20%, with a gold medal for Corona Cero: the official partner of the Olympics even experienced a triple-digit growth.
