Anheuser-Busch InBev (NYSE:BUD), the parent company of Bud Light, reported better-than-expected Q1 results despite a significant dip in sales volume, especially in North America where it fell by 9.9%. This decline primarily stemmed from the ongoing impact of a boycott against Bud Light that began in April 2023. Meanwhile, competitors Constellation Brands (NYSE:STZ) and Molson Coors Beverage Company (NYSE:TAP) are not only maintaining but also looking to expand their market share gained from Bud Light’s losses.
Anheuser-Busch’s revenue rose to $14.55 billion, a 2.6% increase attributed to higher pricing. However, sales to U.S. retailers and wholesalers dropped by 13.7% and 10.7% respectively. The company faces the challenge of reconnecting with a generation of consumers distanced by the boycott, with predictions suggesting a decade-long effort may be required to regain their loyalty.
In contrast, Molson Coors has seen significant growth in its products like Miller Lite and Coors Light, with sales increases of 7.8% and 15.3% respectively over the past four weeks. The company expects further growth with increased grocery shelf space. CEO Gavin Hattersley anticipates a 13% increase in shelf space for Miller Lite and Coors Light, and about 20% for Coors Banquet, which he believes will boost sales leading into the summer.
Constellation Brands has emerged as a major beneficiary of these market shifts, with substantial gains in its imported beer brands like Modelo, which surpassed Bud Light as the top-selling beer in the U.S. last June. The popularity of imports has been growing, and the Bud Light boycott has accelerated this trend. CEO Bill Newlands is optimistic about continuing this momentum with new innovations in their lineup.
As the beer industry landscape continues to evolve, the upcoming quarterly results will be crucial in assessing the long-term impacts of these shifts and the effectiveness of Anheuser-Busch’s strategies to reclaim its market position.
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