Budweiser fuels AB InBev volume growth

AB InBev beer volumes grew 1.3% in the United Kingdom for the first quarter to 31 March — fuelled by Budweiser's sponsorship of the World Cup.

The global brewer, whose brands include Stella Artois, Becks and Budweiser, said it had outperformed the market in the UK.

The brewer benefited from synergies relating to its merger with Anheuser-Busch, lower costs as a result of the sale of a distribution asset, and lower sales and marketing expenses due to the timing of activities.

Budweiser volumes grew 40% in the quarter, mostly in the off-trade, due to its sponsorship of this summer's World Cup.

"It's no secret that we are operating in challenging industry and market conditions, exacerbated in the UK by record beer duty increases," said AB-InBev UK president Stuart MacFarlane.

"In this context, I'm especially pleased with the results we achieved in the UK.

"I'm very pleased that Budweiser has grown volumes over 40% for the quarter, highlighting the impact of our strong brand support, and offering a glimpse of what's to come as we head into the World Cup season when Budweiser, as Official Beer sponsor of the FIFA World Cup has traditionally outperformed its competitors."

In Western Europe, its own beer volumes declined 1.2% with total beer volumes down 2.9%. Earnings Before Interest, Tax, Depreciation and Amoritisation (EBITDA) increased 31% to $191m.

"The harsh winter was a major contributor to the decline in industry volumes in the first two months, especially in Belgium, Germany and the United Kingdom," it said.

Overall, total volumes increased 0.8%, with own beer volumes up 0.7%, driven by a strong performance in Brazil, China and Canada.

Revenue rose 1.9% with "continued focus on premium brands and improved pricing to offset cost pressures". EBITDA grew 5.1% to $3,086m.