Sale of Beer in China Market Boosts the Market Performance of AB InBev

Published Date : May 06, 2015

Anheuser-Busch InBev, which happens to be one of the largest brewers in the world, recently reported that its revenue earnings had surpassed the expectations of business analysts. This came at a time when the price of beer is surging in some of the emerging countries of the world such as Brazil and China. This trend did offset a certain decline in the revenue earned by the U.S. which earlier increased by 6.2% during the 1st quarter of the year. This also did not include the effects of acquisitions and currency shifts. 

Earlier analysts had predicted an advance of 3.6%. However, the earnings increased by 11% thereby recording a total revenue of almost US$4 billion. The business of this brewer is expanding gradually in several emerging markets and this will offset the decline of market shares in the flagship brand which is the U.S. based Budweiser. In this place, till date there are craft beers that are continuing to lure several drinkers to move away from the mainstream suds. At present, AB InBev is witnessing weak consumer sentiment and also challenging year-on-year contrasts in Brazil. 

According to analysts, the sale trend in China and Brazil was quite impressive. Both these regions are premiumizing markets which should ideally continue functioning on the same lines to ensure long term growth. In Brussels, this company prospered by 3.2% thereby reaching a market value worth 108.2 Euros. This pushed the current year’s gain to 15%. Stella Artois and Corona, which happen to be AB InBev’s global brands, also reported a strong growth in volume terms of 4.6%. The growth of these two brands can be attributed to growing sale of Budweiser in Brazil and China.