AB-InBev streamlines global management
In an effort to grow sales and cut costs, AB-InBev announced that it has streamlined its global management structure. Instead of being split into nine geographical zones, the brewer is to shift to only six, the company said on 26 July 2018. What is more, the restructuring will also combine ZX Ventures, a separate unit established in 2015 to buy craft breweries and create products for evolving consumer demands, with its marketing branch. ZX Ventures is said to remain independent, though.
The company has also created two new positions. There will be a Chief Non-Alcohol Beverages Officer, who will look after the company’s non-alcoholic portfolio, which accounts for more than ten percent of AB-InBev's current volumes, but plummeted 43 percent in the second quarter. Further, there will be a Chief-Owned Retail Officer to oversee the company-owned bars around the world.
Stuart MacFarlane, 51, currently Zone President for Europe, has decided to leave the company to pursue other interests, effective 1 May 2019.
All the other changes will become effective 1 January 2019 and are part of an ongoing effort to integrate SABMiller, which the company acquired in 2016 for more than USD 100 billion.
Reporting second quarter results, AB-InBev said that volume sales were up 0.9 percent in the quarter, while net profits rose 29 percent to USD 1.94 billion, from USD 1.50 billion in the year earlier period. However, turnover dropped 1.2 percent to USD 14.01 billion, while EBITDA rose “only” seven percent (over-keen analysts had expected 8 percent) to USD 5.57 billion. This was due to increased marketing spending for the World Cup.
The brewer also had to admit that US turnover in the second quarter declined 3.1 percent, caused by a 5.1 percent fall in sales to wholesalers. Other than the US, profits grew in all its major markets, including in South Africa, despite lower volumes.
