On Thursday, Anheuser-Busch InBev will report its results from both the fourth quarter and the full year of 2019. For the first nine months of last year, the brewer reported a 4.8% increase in sales. Here’s a look at the news that will likely shape the group’s performance in the three months to the end of December.
- The final quarter of 2019 started with A-B InBev putting a sizable dent in its debt pile, with the group confirming at the start of October that US$6.1bn had been repaid. The funds came from the combination of an initial public offering of shares in its Asia-Pacific business as well as the divestment of Carlton & United Breweries in Australia to Asahi. The brewer has been dealing with debts following the $107bn acquisition of SABMiller four years ago
- Later in the month, A-B InBev revealed plans to launch a line of CBD-infused beverages in Canada. The drinks will be fronted by The Fluent Beverage Co, set up by the company with its Canadian cannabis partner, Tilray. Then, in mid-December, Fluent brought Everie to market in the country. The tea range, which contains 98% “pure” CBD, will be followed by a carbonated RTD variant later this year
- Details emerged in October of the group’s decision to brew the Corona beer brand outside of its home market of Mexico. First up was China, with one analyst describing the move as having “sacrificed the sacred cow of single-source Mexican Corona”. Then, in early-November, the UK was the next country to take on brewing the brand. In the same week, A-B InBev told just-drinks that Brazil, Colombia and Belgium are also producing Corona domestically
- Shortly after the release of year-to-date results, group CEO Carlos Brito showed his hard seltzer hand. Speaking to analysts and media on a post-results call, Brito compared A-B InBev’s future strategy in the booming alcoholic sparkling water sector to its historical approach to craft beer. “We believe what happened with craft could also happen with seltzer as well,” he said. “That’s because of our wholesalers, because of our system, because of the strong brands we have that can transfer some of the exact equity to a new category.” Two weeks later, we reported on the pending launch of Bud Light Seltzer in the US
- November saw the company finally take the plunge with Craft Brew Alliance, buying the rest of the US brewing collective to take outright control. The transaction, estimated to be worth $222m, resulted in A-B InBev securing full ownership of brands including Redhook Ale, Widmer and the Hawaiian beer Kona, which has been in strong growth in the US in recent quarters
What does Anheuser-Busch InBev’s Craft Brew Alliance buy mean for US beer? – Comment
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