Locked-down drinkers lose their thirst for Budweiser, Stella

JOHANNESBURG – Anheuser-Busch InBev NV warned that its biggest three beer brands — Budweiser, Stella Artois and Corona — are bearing the brunt of a collapse in sales caused by Covid-19.
Revenue from those brands dropped 11% in the first quarter, about twice the rate of decline for the company’s overall portfolio of more than 500 labels. Shipments plunged the most in China, where the effect of Covid-19 lockdowns hit hardest because they started earlier than in the U.S. and Europe.
As demand evaporates amid a global shutdown of bars and restaurants, AB InBev and rivals Heineken NV and Carlsberg A/S are racing to find ways to cut costs to reduce the effect on profit. So far AB InBev’s more expensive products are suffering less. Longer-term, as the pain from a pandemic-induced recession spreads from blue-collar to white-collar workers, that could also harm the collection of niche premium labels that AB InBev has built up in past years.

Source: iol.co.za