Andy Morton

Analysis - Anheuser-Busch InBev ready for global beer revival

By | 16 September 2013

A-B InBevs Brazil unit AmBev is the market leader

A-B InBev's Brazil unit AmBev is the market leader

Anheuser-Busch InBev is the best-placed global brewer to benefit from a rebound in the world's beer volumes next year, led by Brazil, an analyst has said.

A-B InBev, which control's Brazil's biggest brewer AmBev, can expect a 2% volume growth in the Latin American country next year, UBS's Melissa Earlam said in a note today (16 September). Brazil is on course for an estimated 1% decline this year, Earlam forecast.

Global beer volumes are expected to rise by 2.8% next year, up from this year's estimated 1.1% rise, Earlam said.

Brazil's beer market has stagnated over the past year but next year's FIFA World Cup, set to be held in the country, and returning consumer confidence are causes for optimism, according to Earlam. AmBev has 69% of the beer volumes in Brazil and 94% of the profit pool, according to UBS figures.

Earlam said that SABMiller is “very attractively positioned” for medium-term growth as 70% of its profits come from emerging markets. However, civil unrest in Colombia could damage short-term volumes while volumes in Peru may suffer from excise tax increases. SABMiller has 98% of Colombia's beer volumes and 94% of Peru's, according to UBS figures.

Heineken's exposure to weakening markets in Europe could hamper growth for the Dutch brewer, while Carlsberg continues to find trouble in Russia, which accounts for 37% of the company's profits, Earlam added.

An analyst today said that Carlsberg may have more room to revive beer volumes in Russia from 2015, when excise tax increases slow.

Expert analysis

Anheuser-Busch InBev SA/NV - SWOT, Strategy and Corporate Finance Report

Anheuser-Busch InBev SA/NV - SWOT, Strategy and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings, detailed financials, and corporate actions, providing a 360° view of the company.

Sectors: Beer & cider, Emerging markets – BRIC

Companies: SABMiller, Heineken, Carlsberg, Anheuser-Busch InBev

There are currently no comments on this article

Be the first to comment on this article

Related research

Heineken N.V. - SWOT, Strategy and Corporate Finance Report

Heineken N.V. - SWOT, Strategy and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings, detailed financials, and corpo...

Anheuser-Busch InBev NVSA (ABI) - Financial and Strategic SWOT Analysis Review

Anheuser-Busch InBev NVSA (ABI) - Financial and Strategic SWOT Analysis Review provides you an in-depth strategic SWOT analysis of the company’s businesses and operations. The profile has been compiled by GlobalData to bring to you a clear and an unb...

Carlsberg AS (CARL B) - Financial and Strategic SWOT Analysis Review

Carlsberg AS (CARL B) - Financial and Strategic SWOT Analysis Review provides you an in-depth strategic SWOT analysis of the company’s businesses and operations. The profile has been compiled by GlobalData to bring to you a clear and an unbiased view...

Related articles

just For Subscribers - The week in drinks

Here are the ten most viewed, subscriber-only items on just-drinks this week:

just the Round-Up - The week in drinks

The top ten stories published on just-drinks this week:

US: Danone Waters of America poaches Heineken executive

Danone Waters' North American unit has appointed a new marketing VP.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page