Anheuser-Busch InBev: Record Revenues Amidst Challenges in US Business
Despite reporting record revenues of $69.7 billion for the year 2023, Anheuser-Busch InBev (AB InBev) expressed concerns over its “full growth potential” due to the underperformance of its US business. The North American region experienced a decline in organic revenue, causing a significant loss of $1.4 billion.
Bud Light Sales Plummet after Transgender Influencer Partnership
The decline in sales was mainly attributed to a drop in Bud Light sales in the US market. This was primarily due to a controversial partnership with transgender influencer Dylan Mulvaney that sparked an anti-trans backlash and led to a boycott of the brand. The tepid response from the company further fueled anger among LGBTQ+ advocates.
Modelo Especial Overtakes Bud Light as America’s Top-Selling Beer
The controversy led to Modelo Especial dethroning Bud Light as America’s top-selling beer for the first time in over two decades.
US Performance Remains Underwhelming
Equity analyst Aarin Chiekrie at Hargreaves Lansdown reported that the US performance for AB InBev remained “very underwhelming,” with revenue declining at double-digit rates and the company losing market share.
Union Strike Averted in US, Optimistic Note for US Business
In a positive development, AB InBev reached a tentative agreement with the Teamsters union in the US, averting a potential strike of 5,000 workers. Additionally, AB InBev expressed optimism about the outlook for its US business, stating that there had been continuous improvement in beer market share since May 2023.
AB InBev’s Asia Business: Profit Decline and Falling Sales Volumes in China
In the Asian market, Budweiser Brewing Company APAC, saw profits attributable to shareholders decline due to a one-off customs charge in South Korea. Sales volumes also dropped in China during the fourth quarter, although sales of premium brands grew in double digits.
