ANHEUSER-BUSCH InBev, the world’s largest brewer, beat market estimates for third-quarter profits, despite a decline in the amount of beer it sold in the US and eastern Europe.
The Belgian company, which sells brands such as Stella Artois, Budweiser and Becks, said core profit for the third quarter was up 5.5 per cent at $3.97 billion (€2.93 billion), ahead of market expectations. Revenues, however, were lower than expected, up just 3.6 per cent at $10.2 billion. The total volume of beer and other drinks sold fell 0.2 per cent.
Declines were notable in the US, where shipment volumes fell 3.4 per cent after the company raised the prices of sub-premium beer brands. Despite the sluggish economy, US drinkers are moving towards the company’s premium brands such as Bud Light, Michelob Ultra and Stella Artois.
Sales of Budweiser have been declining in the US, but the company is trying to revive the brand with new packaging and with sponsorship deals.
In Russia, volumes fell 9.9 per cent after the government last year raised the tax levied on beer by 200 per cent. – (Copyright The Financial Times Limited 2011)
