FDBusiness.com

AB InBev Continues to Focus on Premiumisation

 Breaking News
  • Discovery, Plant-Based and Alternatives Lead the Top Ten Trends For 2019 Targeting increasingly adventurous consumers, set on new discoveries and experiences, will be key to developments in the food and beverage industry in 2019. The connected world has led consumers of all ages to become more knowledgeable of other cultures, contributing to 35 percent growth of “discovery” claims, when comparing 2017 and 2016 new product launch [...]...
  • Pearse Lyons Brewery to Open New Facility at Historic Irish Site Alltech Beverage Division Ireland (ABDI) has made an announcement about the planned opening of a new brewery at the historic site of the old MacArdle Moore Brewery in Dundalk. The new Pearse Lyons Brewery will incorporate the relocation of the Station Works Brewery in Newry, which was acquired by the late Dr. Pearse Lyons in [...]...
  • WRAP Comes Up With Winning Formula to Tackle Milk Waste A new report from the UK’s leading sustainability experts WRAP shows for the first time the scale of milk wastes across the food chain, from processing to our homes, and highlights ways we can significantly reduce the 330,000 tonnes of total milk lost each year, worth more than £150 million. Milk waste in the home is [...]...
  • Samworth Brothers Launches New Fitness-focused Ready Meal Range With Innovative Identity by Brandon Leading British food manufacturer Samworth Brothers is launching a ground-breaking range of ready meals to appeal to everyday athletes, with brand identity and packaging by design consultancy Brandon. Responding to an increasing consumer demand for healthier convenience options, the meals, which come in three variants – Cajun Chicken, Turmeric Chicken and Pad Thai Chicken – are [...]...
  • Premier Foods Shows Resilience Premier Foods has reported a 1.3% increase in group revenue to £358.0 million and a 6.2% rise in trading profit to £51.0 million for the 26 weeks ended 29 September 2018. The group’s largest brand, Mr Kipling, was key to this growth following an excellent consumer response to its relaunch in the UK with revenues [...]...

AB InBev Continues to Focus on Premiumisation

AB InBev Continues to Focus on Premiumisation
July 31
12:18 2017

Anheuser-Busch InBev has reported a 4.4% increase in revenue to $27.10 billion for the first half of 2017 with revenue per hl growth of 4.2%, as combined revenues of the group’s three global brands – Budweiser, Stella Artois and Corona – rose by 10.6%. Continued focus on driving premiumisation is allowing AB InBev to generate top-line growth in emerging as well as developed markets.

First half EBITDA grew by 9.0% to $10.16 billion and EBITDA margin expanded by 161 bps to 37.5%. This growth is attributable to a healthy top-line growth, helped by strong synergy capture, although partly offset by the anticipated CoS (Cost of Sales) pressure.

The integration of the SAB Miller acquisition is progressing well, with synergies and cost savings of $335 million captured during the second quarter. AB InBev is also well advanced in sharing best practices, with intellectual synergies driving a new approach to category growth.

Western Europe, which is part of AB InBev’s EMEA business, had another strong quarter and double-digit revenue growth, driven by strong performance of the premium portfolio, especially the global brands. The UK performed particularly well with double-digit top-line growth resulting from a strong commercial performance. In Eastern Europe, revenues declined by low single digits as volumes fell by high single digits. AB InBev continues to face a difficult macroeconomic environment in both Russia and Ukraine as well as a large PET ban in Russia, although it did see good growth from its premium portfolio in these markets.

AB InBev expects to accelerate total revenue growth during 2017, driven by the solid growth of its global brands and strong commercial plans, including revenue management initiatives. CoS per hl is projected to increase by low single digits on a constant geographic basis, despite unfavourable foreign exchange transactional impacts, and growth in premium brands. Net capital expenditure is expected to reach approximately $3.7 billion during the 2017 financial year.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • November 21, 2018expoSE European Asparagus and Strawberry Fair
  • November 27, 2018Health Ingredients Europe
  • November 28, 2018FOOD & LIFE
  • December 3, 2018P&P 2018
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements