just the Preview – Anheuser-Busch InBev Q3

Anheuser-Busch InBev will report its third quarter results on tomorrow (3 November). Here, just-drinks brings you highlights of the brewer’s news in the three months to the end of September.

• In September, Budweiser retained its place as the world’s most valuable alcoholic drink brand, having risen in value by 4% to US$12.25bn in the previous 12 months. The self-styled ‘King of beers’ came 30th in Interbrand’s top 100 global brands.

• The brewer has been continuing discussions with trade unions over its restructuring plans in Western Europe, which could cut the firm’s workforce in the region by 10%. The group has said that it needs to adapt to lower beer consumption in several countries.

• In August, A-B InBev’s subsidiary, AmBev, announced plans to merge its business in Venezuela with the country’s second largest brewer, Cerveceria Regional. AmBev is a distant third in a market duopoly in Venezuela and the deal will help it to build a greater presence there. Venezuela’s beer market is set to expand by 2% per year in volume and by 4% in value up to 2014.

• Back in Europe, Diageo renewed a deal to brew and sell Budweiser in Ireland under licence from A-B InBev. The deal is to last ten years.

• Analysis by just-drinks revealed that A-B InBev’s subsidiary in Russia, Sun InBev, regained market share in the country in the first half of 2010. Its volume sales decline in the first half of 2010 was nearly 3% lighter than the average.

• In its half-year results, A-B InBev saw sales driven by strong demand for beer in Brazil, AmBev’s home territory. Volume sales in Brazil rose by 15% on the first half of 2009 and helped the brewer to offset weaker demand in Europe and North America.

• On the subsequent half-year results conference call, the firm said that it did “not expect any material impact in 2010 or 2011” from higher wheat prices. Shares in all the major brewers slipped after Russia said it would ban wheat exports until at least the end of the year.

• While not named directly, A-B InBev could be impacted by a fresh Government investigation into beer market practices in Mexico. New of the probe, which was sparked by an SABMiller complaint, emerged in August. A-B InBev has a 50% non-controlling stake in Mexico’s leading brewer, Grupo Modelo.

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