ABI US Sales Volume Down, But Revenue, Profits Rise On Higher Prices, Improved Mix
May 4, 2011Anheuser-Busch InBev sold less beer in the first quarter of 2011 than in the year-earlier period, but price hikes in its key markets spurred solid revenue and operating profit growth. While the brewing giant’s global beer shipments slipped by 0.2% to 80.1 million hectoliters in the first three months of 2011, ABI’s revenue advanced by 5.6% to $9 billion as the company’s earnings before interest and taxes grew by 8.3% to $2.76 billion.
In the U.S. market, ABI’s depletions fell by 2.2%, as the Budweiser franchise continued to struggle. Still, even for the Bud brands, the value picture was encouraging due to price increases that were largely implemented in the third quarter of 2010. ABI’s per-hectoliter-revenue improved by nearly 4% in the U.S. in the first quarter, due both to the higher prices and a favorable sales mix, which saw its sub-premium business—led by Natural Light, Busch and Busch Light—lose ground while its high-end business thrived. Aggregate depletions of those high-end brands—including Stella Artois, Beck’s, Leffe, Hoegaarden, Land Shark and Shock Top—jumped by 18.7% in the first quarter.
| Anheuser-Busch InBev – Top Five Beer Brands in the USA1 (millions of barrels) |
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| Rank | Brand | Segment | 2009 | 2010 | Percent Change3 |
|---|---|---|---|---|---|
| 1 | Bud Light | Premium Light | 40.5 | 39.7 | -1.9% |
| 2 | Budweiser | Premium | 19.3 | 18.1 | -6.5% |
| 3 | Natural Light | Sub-Premium Light | 9.4 | 9.2 | -3.0% |
| 4 | Busch Light | Sub-Premium Light | 6.8 | 6.6 | -2.5% |
| 5 | Busch | Sub-Premium | 6.5 | 6.1 | -6.2% |
| Total Top Five2 | 82.5 | 79.6 | -3.5% | ||
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1 excludes non-alcoholic brews, malt-based RTD’s, commercial exports and shipments to Puerto Rico, US possessions and armed forces overseas, including US armed forces post exchanges 2 addition of columns may not agree due to rounding 3 based on unrounded data Source: Impact Databank |
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