THE GIST
The world’s largest brewer is officially back in the black, at least when it comes to the number of cans moving off the shelves.
After a three-year hangover of declining sales, AB InBev reported a surprise 0.8% rise in volumes, proving that even a global squeeze on wallets cannot keep people away from a cold Corona.
WHAT HAPPENED
Anheuser Busch InBev just delivered a first-quarter performance that left analysts staring at the bottom of an empty glass. While the smart money was betting on a 0.5% drop in sales volumes, the Belgian giant instead posted a 0.8% increase, the first time that needle has moved in the right direction since early 2023.
The financial metrics were even bubblier. Organic operating profit jumped 5.3% to $5.4 billion, more than double the pace analysts had penciled in. Revenue grew 5.8% to $15.27 billion, fueled by what CEO Michel Doukeris called a consumer-centric strategy. That is a nice way of saying they stopped worrying about the cheap stuff and went all in on megabrands like Stella Artois, Michelob Ultra, and Corona.
In the U.S., revenue ticked up 1.1%, suggesting the brewer is finally clawing back some dignity after a rocky few years of brand drama and shifting tastes. Meanwhile, Mexico, Colombia, Brazil, South Africa, and Peru saw record high volumes. It was not just traditional lager doing the heavy lifting. The company’s push into ready-to-drink canned cocktails like Cutwater and non-alcoholic options saw revenues in those categories skyrocket by 37%.
Investors toasted the news by sending shares up nearly 7% in early trading. For a sector that has been plagued by news of job cuts, rival Heineken recently announced 6,000 layoffs, AB InBev’s report was a rare shot of 100-proof optimism.
WHY IT MATTERS
This is not just about people drinking more beer; it is about who is drinking what.
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For years, the big beer narrative was a depressing one where young people were drinking less, older people were switching to spirits, and everyone else was too broke to buy a six-pack. AB InBev just flipped that script by leaning into the premiumization trend.
By focusing on mega-brands, AB InBev is betting that even if consumers buy fewer total drinks, they will pay more for a brand they recognize and trust. It is a strategy that seems to be working, particularly in the US and Europe, where revenue per hectoliter climbed as the company successfully pushed higher price points.
