Anheuser-Busch InBev reports it overcame U.S. industry decline in sales to retailers of 1.7% to see ABI’s U.S. sales rise 0.2% in the third quarter, with revenue per hl growing 3.4%.
ABI said its own sales to retailers were down 3.5% in the period, and its market share ebbed 85 basis points “driven by the growth of hard seltzer within the flavored malt beverage category and the cycling of shipment phasing ahead of a price increase” the month.
ABI acknowledged it was currently “underindexed” in hard seltzers, and added it sees the growth of hard seltzer “as positive for the malt beverage category, attracting consumers from other alcohol segments and generating significant interest as it addresses consumer needs, including premiumization and health and wellness.”
ABI said it estimates that more than half of hard seltzer growth “is incremental to the malt beverage category” and as the category evolves consumers will demand more choices and that a portfolio approach will be critical to long term success.”
The company is “expanding and enhancing our hard seltzer portfolio rapidly,” starting with Bon & Viv.” Natty Light Seltzer is off to a strong start, with ABI’s share of segment nearly doubling since its recent launch.
ABI said its “above core portfolio outperformed the industry once again, gaining 90 bps of market share as per our estimates, with the Michelob Ultra family and our regional craft portfolio leading the way. Michelob Ultra continues to grow by double-digits, gaining share in all 50 states in 3Q19 and is the top share gainer in the industry in 9M19. Michelob Ultra Pure Gold Organic delivered volume growth of over 80%, while Michelob Ultra Infusions grew over 50%. Our regional craft portfolio grew by double-digits in 3Q19, gaining share within the craft segment.
ABI is a global brewer, and while its mainstream segment in the U.S. remained “under pressure as consumers trade up to higher price tiers,” with share contracting by 175 basis points in the quarter, on a global basis the overall company saw total revenue grow 2.7% even though volume eased 0.5%.
ABI’s own beer volumes were down 0.9% worldwide and non-beer volume was up 4%. “Solid growth from markets such as Mexico, South Africa and Colombia was more than offset by declines in China and the US, both primarily driven by shipment phasing impacts,” it said.
ABI’s global net profit rose to $2.41 billion, or $1.22 a share, from $1.52 billion, or 77 cents a share, a year earlier, the company said.