Budweiser fuels AB-InBev UK beer growth
AB-InBev beer volumes grew 18.6% in the United Kingdom in the company's second trading quarter, benefiting from Budweiser's sponsorship of the football World Cup.
Ab-InBev, which counts Stella Artois, Budwesier and Becks amongst its brands also reported a volume uplift of 11.4% for the half year in the UK.
"Budweiser performed particularly well, benefiting from the FIFA World Cup sponsorship which featured a number of campaigns and promotions, driving the brand's good performance in both the on-trade and off-trade channels," it said.
UK President Stuart MacFarlane said: "I'm especially pleased with our performance over the World Cup period, where Budweiser, official beer of the 2010 FIFA World Cup, performed particularly well, in both the on-trade and off-trade channels.
"Looking at half year performance, as compared with the same period last year, Budweiser has grown volumes by over 70% — an excellent result."
But the global brewer struggled in other areas of Western Europe. Own beer volumes fell 4% in Belgium for the half year as a result of striking workers at its brewery. Own beer volumes in Germany fell 12.9% in the second quarter and 9.8% for the half year "driven largely by challenging industry conditions and aggressive competitive activity, especially in the off-trade".
Overall, the brewer reported a 2% uplift in own beer volume for the second quarter, with own beer volumes up 1.4% for the half year. Earnings Before Interest, Tax, Depreciation and Amoritisation (EBITDA) grew 5.6% to US$ 3,354m for the second quarter and 5.4% to US$ 6,440m for the half year.
But it was not satisfied with its overall market share performance and vowed to re-focus for the remainder of the year. "Notwithstanding our international successes with Budweiser, we are not pleased with our overall market share performance, having gained or maintained share in markets representing almost half of our volumes," it said.
"We are putting in place brand building and commercial programs to improve our performance in the second half of 2010 and into 2011.
"Importantly, our brand health indicators remain strong across all Zones. Several factors contributed to the share losses, including social actions in Belgium, tough comparisons in the United States and promotional activities by some competitors, especially in Germany."
