In 2008, international brewing company, InBev purchased American beer icon Anheuser-Busch to become the world’s largest brewer. The multinational drink and brewing company was created from the merger of the Brazilian Companhia de Bebidas das Americas (AmBev) and the Belgium Interbrew SA in 2004. AB InBev (Tii:BUD) is headquartered in Leuven, Belgium, where beer has been in production for over 1,000 years. People have been drinking beer, one of the oldest beverages in the world, for centuries. Since around 5,000 B.C., when historians place the beginnings of agriculture and growing cereal grains, beer has been brewed. And according to statistics gathered with data over the last 30 years, people in living in the Czech Republic consume the most beer per capita.
Retail shareholders that enjoy variety in their beverage (and investing) options, can find many selections within the more than 500 brands that are under the AB InBev umbrella. Global giants, Bud, Mic Ultra, Corona, and Stella Artois are recognizable favorites. AB InBev owns 7 of the top 10 global beer brands (Heineken, Corona Extra, Budweiser, Stella Artois, Brahma, Bud Light, and Modelo Especial) and in 2023, posted sales of $59.38 billion.
The global beer market continues to steadily grow, though statistics show that many younger drinkers are looking for other types of beverages like seltzers or canned cocktails. InBev understands that not all of their customers are interested in beer, and the company has taken steps to please non beer drinkers as well. In 2015, InBev purchased Cutwater Spirits, a San Diego company that spun off from the city’s Ballast Point Brewing. AB InBev’s “Beyond Beer” portfolio includes brands like Cutwater spritzers and spirits, along with non-beer brands like Ritas, Spiked Seltzer, Babe Rose and HiBall.
In 2023, 28% of Americans 21 or older did not drink any alcohol. The non-alcoholic drink market is growing substantially. The “Sober Curious”—people that are experimenting with sobriety — and many Gen Z’rs are interested in healthy living, or have moved to cannabis use, which is perceived to be less harmful. According to a market study done by IWSR of London, global sales volumes of non-alcoholic drinks are projected to grow at a compound annual growth rate of 7% between years 2023 and 2027, and then make up nearly 4% of the overall “alcohol” market.
In 2015, AB InBev established the Global Smart Drinking Goals to contribute to the World Health Organization (WHO) and UN SDG targets to reduce the harmful consumption of alcohol. The company has committed to investing $1 billion to reduce alcohol-related harms caused by impaired driving, binge drinking, underage drinking, and gender-based violence, among other problem behaviors.
AB InBev’s NABev business unit was created in 2018, focusing on developing, producing, licensing and co-development of no-alcohol offerings across 20 countries with a portfolio including soft drinks, water, malt beverages and energy drinks, like Fusion. The company spent 31 million Euros to upgrade technology at its Global Innovation and Technology Center (GITEC) and their Belgian breweries in Sint-Pieters-Leeuw, Hoegaarden and Leuven to expand their low- and no-alcohol brewing capabilities. Its Smart Drinking, no-alcohol brand portfolio includes 30 brands available in 42 countries. Corona Cero, one of seven no-alcohol beers brewed by AB InBev in Belgium, including options like Bud Zero and Stella Artois Liberte. Recently the IOC and AB INBev announced that Cero will be the global beer sponsor of the Olympic Games.
AB InBev has maintained strength in uncertain times, staying ahead of customer preferences, making choices about embracing new directions and new products and has a wide palette of beverages to enjoy different times of day, for many different interactions and social gatherings.