ABI Global Volume Up 3.4%, Revenue Climbs 7.9%, But Profit Is Halved

Posted on October 28, 2021 by Joel Whitaker

Anheuser-Busch InBev reports volume in the third quarter grew 3.4%, with own beer volumes up by 2.8% and non-beer volumes up by 7.8% and total revenue gained 7.9% to $14/3 billion.  Sales of the company’s three global brands, Budweiser, Stella Artois and Corona, increased 5.0% globally and 9.3% outside their respective home markets.

The company’s profit, however, plunged in the third quarter to $695 million from $1.28 billion.  The company didn’t address the plunge in net profit, choosing instead to focus on its sales strategy and use of technology.  It noted that its earnings before interest, taxes, depreciation and amortization rose 3% year over year.  CEO Michel Doukeris said the company now projects 2021 EBITDA growth to a range of 10% to 12%.  It previously had projected EBITDA growth at aroound 8%.

In the U.S., both revenue and EBITDA grew mid-single digits versus 2019. Compared to the third quarter of 2020, total revenue declined 0.8%, with sales-to-wholesalers (STWs) declining 4.7% and revenue per hl growing by 4.1%. Sales-to-retailers (STRs) declined 4.7%, driven by a lower industry, segment shift and supply chain disruptions resulting in out-of-stocks. EBITDA decreased by 2.6%.

Michelob Ultra once again outperformed the industry in the U.S., maintaining its position as the second largest brand by volume and retail sales, according to IRI. ABS’s Seltzer portfolio continued gaining share of segment, growing 1.8 times the segment year-to-date. The canned cocktail brand Cutwater once again grew by triple-digits this quarter.

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Beer Shipments Fall 5.1% in September

Posted on October 28, 2021 by Joel Whitaker

Perhaps they overdid it.

U.S. brewers wasted no time rebuilding inventories at wholesalers after the pandemic, with the result distributors had an abundance of product in the early months of the summer.  The result:  Shipments slowed considerably beginning in July, into August and September.  Domestic tax paid shipments fell 5.1% in September to 14.8 million barrels from the year-earlier month, the Beer Institute said.

Danelle Kosmal, Beer Institute’s vp-research, noted year-earlier comparisons were very strong.  September was one of the strongest performing months of 2020, when domestic tax paid was up 5.1% to 15.6 million barrels.

For 2021 through Sept. 30, beer shipments are up 0.8% to 129.4 million barrels.

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Frederick Wildman Adds Programs to Educate Next Generation

Posted on October 28, 2021 by Joel Whitaker

Frederick Wildman & Sons announced  two new programs to make industry education and training more accessible to the next generation of wine & spirits professionals. The Wine & Spirit Education Trust (WSET) Scholarship and inaugural winter internship program are part of Frederick Wildman’s new Diversity, Equity and Inclusion efforts that will help equip individuals from all backgrounds with tools to thrive within the wine industry and bring a fresh perspective to the rapidly growing wines & spirits importer.

As part of the new scholarship program, six WSET scholarships will be awarded in 2022. These will provide access to more educational opportunities that will ultimately support professional development across the industry. Recipients will receive course and testing tuition and will be paired with a Frederick Wildman &  Sons mentor to provide support throughout the process. Applications will be accepted until December 15, 2021, and recipients will be announced in January 2022.

The new internship program will award two winter internships for a three-week period in January 2022. Interns will expand their knowledge, skills and experience in the alcohol beverage industry through assignments and educational opportunities, while gaining contacts and mentorship to help launch their career. Applications will be accepted until December 1, 2021, and the program will take place from January 3, 2022, through January 21, 2022.

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ICYMI: Major Advertisers Share Blame for Facebook Troubles

Posted on October 28, 2021 by Joel Whitaker

Corporate America shares blame for the troubles at Facebook, Venture capitalist Roger McNamee, an early backer of Facebook, says.  “What they are doing is willfully turning a blind eye to catastrophic problems that would not exist if they were not willing to advertise on these platforms,” McNamee, an early investor in Facebook, told CNN  in a phone interview. “The major advertisers have a lot of guilt here. ‘Facebook is terrible, but I have to maximize shareholder value, so I have to use it.’ They tell themselves this is not their fault. It’s really Facebook’s. No, it is your fault,” McNamee said.

Jeffrey Sonnenfeld, a professor at the Yale School of Management who regularly talks to CEOs about controversial topics, called for business leaders to take action following the recent revelations at Facebook.  “They must sever ties as they are complicit tacitly with some of the worst human atrocities, human rights violations and subversion of democracy,” Sonnenfeld told CNN on Monday.  “Advertisers “do have leverage,” McNamee said. “They’re just choosing not to use it.”

The Great Supply Chain Kerfuffle of 2021

Delays in deliveries are affecting viticulture and winemaking procedures, product launches, and limiting consumers’ options during the peak of holiday wine-buying, Jeff Siegel writes in Wine Industry Network Advisor.

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Glen Grant Launches Special Edition

Posted on October 28, 2021 by Joel Whitaker

Glen Grant announces the U.S. launch of the exceptionally rare Dennis Malcolm 60th Anniversary Edition. The coveted 60-Year-Old Single Malt Scotch, which retails for a SRP of $30,000 USD, will debut at the 62nd Annual Fort Lauderdale International Boat Show (FLIBS), where The Glen Grant is a Proud Partner.

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Campari Group to Raise Prices to Offset Rising Costs

Posted on October 28, 2021 by Joel Whitaker

The increases will be higher than normal, the company said, and will offset costs for glass, alcohol and sugar.

“We normally raise prices every year… in 2022 we plan to have more robust increases than usual, given higher costs on all raw materials,” said Campari CEO Bob Kunze-Concewitz told Reuters..

Campari will raise prices in all its main markets, including the United States, Kunze-Concewitz said, adding that speciality beverages such as Aperol and Campari could see higher increases than drinks that are more exposed to competition, such as vodka.

“We have increased tequila prices twice in 18 months, and we will have to do it again in 2022,” he said.

The group expects costs for materials, production and logistics to increase 5%.

Campari closed at $14.40, down 32 cents.

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