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Beer sales are struggling. Anheuser-Busch isn’t
Anheuser-Busch's non-beer segment now makes up 3% of revenue and grows twice as fast as beer amid a 1.8% US revenue decline last quarter, CEO Michel Doukeris said.
- Last month, Anheuser‑Busch said it acted urgently to expand beyond beer into non‑alcoholic and ready‑to‑drink choices as fourth‑quarter earnings showed a 1.8% decline in U.S. revenue and global beer volumes fell 1.9%.
- The Premium Light category shows structural decline as Bud Light sales never fully recovered from the backlash three years ago, prompting Anheuser‑Busch a few years ago to diversify beyond beer.
- Management pointed to brands like Cutwater Spirits and NÜTRL vodka‑based seltzer, while Michelob Ultra Zero recently became the top‑selling non‑alcoholic beer by volume last month.
- Shares are up 15% this year, as management says non-beer growth has helped alleviate pressures from weaker beer sales and Michelob Ultra and NÜTRL should get a push from the FIFA World Cup in North America this summer.
- Analysts caution that despite recent industry growth, the FIFA World Cup may only provide a temporary boost and not fully reverse long-term declines.
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Total News Sources12
Leaning Left1Leaning Right1Center10Last UpdatedBias Distribution84% Center
Bias Distribution
- 84% of the sources are Center
84% Center
C 84%
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