AB-InBev’s volumes hit by weaker demand in China and boycott fallout

Belgium | AB-InBev reported that volume sales in the second quarter fell 0.8 percent, compared with the same quarter last year. They were dragged down by weaker demand in China and the continuing fallout from a boycott of its Bud Light brand in the United States.

The world’s number one brewer said on 1 August that volumes sales in China declined 10 percent due to weaker demand. This is the latest sign of how economic uncertainty in the world’s second-largest economy is hurting Western companies. On 29 July, Dutch Heineken reported weaker-than-expected earnings for the second quarter and wrote down the value of its investment in China by EUR 874 million (USD 948 million).

Beyond China, AB-InBev also reported lower volumes in North America (-3.2 percent) and Argentina (-20 percent) as the company posted its fifth consecutive quarter of overall organic volume decline.

Bud Light marketing fiasco

The brewer’s share of the US beer market was flattish in the second quarter. It has lost out to competitors following a Bud Light boycott that began in April 2023 after transgender influencer Dylan Mulvaney had posted an Instagram video about a personalized beer can the brand had sent her as a gift.

Bud Light has since lost its place as the US’s biggest beer brand (in dollar sales) and now trails Modelo Especial and Michelob Ultra.

AB-InBev’s underlying net profit rose to USD 1.81 billion from USD 1.45 billion, while revenue rose to USD 15.33 billion from USD 15.12 billion.

AB-InBev said it continues to expect EBITDA this year to grow in line with its medium-term outlook of between 4 percent and 8 percent.