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Diving briefs:
- AB Inbev’s “Mega Brands” Michelob Ultra and Busch Light helped brewers achieve US sales growth, even as the beer category declined overall, CEO Michel Doukeris said at Brewer’s. Revenues will be called this week.
- The two brands recorded the highest market share growth in the beer category in the last quarter of 2024, Doukeris said. However, Beer executives have raised attention to sales trends in 2025, noting that economic pressures on consumers and weather phenomena have been affecting the industry.
- As the beer category slows in demand, major brewers are increasingly relying on premium, highly distributed brands to bring about growth.
Dive Insights:
Two years after the boycott of Bud Light Roiled AB Inbev’s business, Brewer said it was able to turn sales around and its growth strategy is paying off. This comes amid the continued headwinds of domestic beer, a category that saw sales decline 4.2% last year, according to a TD Cowen report.
Doukeris told ABINBEV analysts that in 2024 several brands are seeing positive momentum in the US with increased market share. The company invested $7.2 billion in marketing, but reduced its debt by $6.9 billion, he said.
ab inbev’s However, the 2024 revenue report, I drew a mixed picture. Stella Artois Brewer’s US and Canada revenues rose 2% last year, but volume fell 3.8%.
The CEO said events such as inflation trends, cold weather, “transition issues and more[s] Some zip codes, which are mostly Hispanic consumers, have an impact on the company’s revenue.
“I don’t think the industry is still at a positive volume point, but we’re looking at it on the dollar, the industry is stable and growing,” Doukeris said. “Let’s see what the tailwind is during the summer.”
Doukeris also promotes the success of the Beyond Beer portfolio, Cutwater is the best-selling canned cocktail brand in the United States, and Nutrl is the second-largest Vodka Seltzer at noon.
While AB InBev’s sales are driven primarily by the largest breweries, Doukeris says 10% of its revenue comes from products that offer different experiences, including non-alcoholic, low-carb and zero sugar drinks.
Recent revenue from rival beer giants also highlights a comprehensive headwind for beer. Molson is leaning heavily towards a blue moon-like spirit and premium beer, but Heineken is making a big bet on Heineken 0.0, a non-alcoholic offering.
In a note to investors, TD Cowen analyst Robert Moskow said AB Inbev managed to reach the other side of Bud Light Boycotts, and that the growth of Michelob Ultra and Busch Light will help offset challenges across the industry.
Still, Moskow warned that AB Inbev “will expand well beyond the beer brand and isolate them from these issues.”
