Anheuser-Busch InBev reports U.S. sales grew 1.8% even though volume declined 1.8%. U.S. market share continued to erode, falling 55 basis points in the second quarter alone.
U.S. results would have been worse if the brewer’s above-core portfolio hadn’t performed so well: The above-core portfolio outperformed the U.S. industry, gaining 80 basis points of market share. Michelob Ultra accelerated share performance in the second quarter, achieving its best quarterly share gain in more than two years, and the Michelob family maintained its position as the top share gainer.
ABI’s regional craft portfolio grew double digits, gaining share in the segment, the company said.
“The mainstream segment remains under constant pressure” in the U.S. “as consmer trade up to higher price tiers,” ABI said, adding that its mainstream portfolio market share contracted an estimated 135 basis points in the second quarter. The company attributed part of that decline to a price increase.
The U.S. might be a drag on the brewer’s global results, but second quarter volume growth worldwide of 2.1% was the best in five years, thanks to “strong performances in many of our key markets, including Mexico, Brazil, Europe, South Africa, Nigeria, Australia and Columbia.” Worldwide revenue grew 6.2%.
Combined revenues of ABI’s three global brands, Budweiser, Stella Artois and Corona, grew by 8.0% globally, and by 11.3% outside of their respective home markets.
Worldwide profit grew to $2.47 billion, or $1.25 a share, from $2.16 billion, or $1.09 a share.
“Premiumization remains a significant opportunity and a critical component of our strategy to deliver sustainable top and bottom-line growth,” the company said, adding:
“We continue to lead the way globally with our unparalleled portfolio of premium brands, as we believe premiumization requires a portfolio approach to meet consumer needs. Our High End Company continues to be a growth engine, growing revenues by 19.5% in the quarter. Our global brands grew revenues by 8% and by 11.3% outside of their home markets. Budweiser grew by 5.6% outside of the US, Stella Artois increased by nearly 12% and Corona was up 23.7% outside of Mexico.”
In the U.S., Anheuser-Busch has been a traditional supporter of the National Football League. Outside the U.S., the global company supports soccer, which is known as football elsewhere.
“Budweiser, which drove extensive scale and reach with the Men’s 2018 FIFA World Cup RussiaTM, continued to support the world’s best football by leveraging the Women’s 2019 FIFA World Cup FranceTM in many of our markets,” ABI said. “Additionally, Budweiser announced a multi-year sponsorship with two of the top international football leagues, the Premier League and LaLiga. These new sponsorships will activate across five continents and in more than 20 countries.”As a long-time partner of the FIFA World Cup and supporter of football leagues and several national teams worldwide, Budweiser is expanding its support for the world’s game and continues to connect to more football fans.”
In FY18 ABI’s sales and marketing investments were weighted toward the first half of the year due to the 2018 FIFA World Cup RussiaTM activation. In FY19, the company said, it expects sales and marketing investments will be much more balanced throughout the year, resulting in a more difficult comparable in the second half of 2019, particularly in the third quarter.
Stella Artois launched campaigns related to the passion point of food in markets around the world, including Canada, Brazil and Chile. Corona achieved its highest ever sales results in the major markets of Australia and Chile. It also launched its Better World platform globally and achieved its goal of cleaning up 100 islands one year ahead of schedule.