Anheuser-Busch InBev has posted its first quarter results, which saw the brewer post a ‘mid single-digit’ increase in revenue in Western Europe, as well as ‘revenue contraction’ in its Eastern Europe business.
Overall, the drinks giant saw revenue grow 3.7% in the quarter, while total volumes declined by 0.5%.
The combined revenues of its three global brands, Budweiser, Stella Artois and Corona, grew by 12.1%. The largest growth was recorded by Stella Artois, which posted revenue growth of 21.1%, driven mainly by performance in the US and Argentina. Corona saw its revenue grow by 18.2%, while Budweiser posted revenue growth of 7.3%.
Budweiser was also supported by a strong Chinese New Year campaign, as well as SuperBowl activations in markets such as the UK and Brazil.
Management Statement
‘The first quarter of 2017, which was also the second quarter as a combined company, saw organic revenue growth of 3.7%, with volumes down marginally,’ a company statement said.
‘Global revenue growth was driven by higher volumes in Latin America North, Latin America South, and Asia Pacific, and further supported by revenue management and premiumisation initiatives throughout our markets.’
In its EMEA business, which includes Europe, AB InBev saw total volumes down 2.7%, with own beer volume down 1.5%.
On Europe, management said that ‘Western Europe grew revenue by mid-single digits, underpinned by market share gains in the majority of our markets and double-digit growth in the UK assisted by the launch of Bud Light’.
In Eastern Europe, however, ‘revenue contraction was driven by the continued decline of volumes, which was accentuated by the introduction of a ban on PET pack sizes larger than 1.5 litres in Russia.’
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine
