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Global Brands Behind Solid Performance by Anheuser-Busch InBev

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Global Brands Behind Solid Performance by Anheuser-Busch InBev

Global Brands Behind Solid Performance by Anheuser-Busch InBev
March 09
15:09 2012

Anheuser-Busch InBev has increased revenue by 4.6% to $39.05 billion in 2011 as its three global brands of Budweiser, Stella Artois and Beck’s grew by 3.3%. However, total group volumes decreased 0.2% during the year, with own beer volumes decreasing 0.1%.

The world’s leading brewer grew EBITDA by 10.7% in nominal terms and 7.7% organically to $15.36 billion, with EBITDA margin expanding by 113 bps to 39.3%. Profit rose by 28.0% in nominal terms to $6.45 billion during 2011.

Anheuser-Busch InBev increased market share ahead of the previous year in Argentina, China, Germany, Belgium and Ukraine, but it was down in the UK and a slightly lower in Canada and Russia. In Brazil, share for the year declined but was still the second highest in ten years. In the United States, share contraction was concentrated in the group’s sub-premium brands, while its focus brands performed well in line with its brand strategies.

Anheuser-Busch InBev made significant progress towards its ambition for Budweiser to become the first truly global beer brand. Budweiser grew volume by 3.1% globally, with almost 44% of the brand’s sales now coming from outside the United States, compared to only 28% just three years ago.

Stella Artois continued its expansion with volume rising 5.9%, driven primarily by growth in the United States, Brazil and Argentina. The brand also performed solidly in the UK, where it benefited from the introduction of Stella Artois Cidre. Another big step forward was the introduction of Stella Artois in three major cities in China – Shanghai, Beijing and Guangzhou. Growth has also continued in markets as diverse as Canada, Russia and Ukraine.

Beck’s global volumes grew by 0.8% in 2011, mainly driven by results in its home market of Germany, supported by good results in China.

Anheuser-Busch InBev is continuing to invest in future growth, building new breweries and upgrading existing facilities in markets as diverse as China, Brazil, Argentina and Paraguay. Net capital expenditure for 2011 was $3.3 billion.

The group’s European businesses had mixed fortunes. Western Europe delivered a strong performance in 2011, with market share gains in all markets except the UK. Western European EBITDA improved 5.5% to $1.23 billion with margin improvement of 313 bps to 31.0%, largely driven by own beer volume growth and fixed cost management initiatives.

Central and Eastern Europe volumes decreased 4.0% during 2011 and EBITDA declined 31.5% to $225 million mainly due to higher commodity costs, distribution cost increases above inflation as a result of higher transport tariffs at the beginning of the year, and higher brand investments.

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