Anheuser-Busch bounces back in first quarter on strong Bud Light Platinum launch

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Anheuser-Busch InBev announced its first quarter earnings for the year 2012 on Monday morning. The results are especially positive in the United States where performance has been lackluster for several quarters now. Below are management’s comments on the U.S. from the press release.

• Volumes: We estimate that selling-day adjusted industry sales-to-retailers (STRs) grew
by 1.3% in 1Q12, benefiting from favorable weather in the central and eastern parts of
the country, early signs of improvement in employment levels and innovation in the beer

Our domestic US beer selling-day adjusted STRs grew by 1.0% and shipment volumes
(STWs) also grew by 1.0%. Our STR volume performance was driven by a strong
commercial plan which included successful NFL and Super Bowl initiatives and the launch
of Bud Light Platinum at the end of January. Bud Light Platinum has proven to be the
most successful brand launch in the US alcohol industry since 2005, reaching a market
share of 1.4% in the 4 weeks through April 1st 2012, according to IRI data.

We saw improving trends in our total market share in 1Q12 with a marginal decline of 14
bps, our best share performance since 2009. Share gains were led by Bud Light Platinum
which drove 64 bps of growth in share for the Bud Light brand family. Michelob Ultra and
our high-end brands also grew share, offset by share losses in premium regular and

• Focus Brands: STRs for the Bud Light brand family grew by 4.7% in 1Q12 benefiting
from the launch of Bud Light Platinum. Michelob Ultra and Stella Artois STRs grew 7.2%
and 22.5%, respectively, while Budweiser STRs declined 4.3%

• Renovation and innovation pipeline: The pipeline remains healthy with several new
liquids including Ultra 19th Hole, Bud Light Lime Lime-a-Rita, Shock Top Wheat IPA and
Shock Top Lemon Shandy now in the market. New Major League Baseball themed
packaging has also been rolled out for Budweiser

• Revenue management: Beer-only revenue per hl grew by 4.3% in 1Q12, with a brand
mix contribution of 151 bps driven by the introduction of Bud Light Platinum, consumer
trade-up from value brands and the growth of our high-end brands

• Sales and Route to Market: The strength of our distribution network was
demonstrated by the launch of Bud Light Platinum which, according to IRI data, achieved
distribution of over 90% within the first two weeks of launch. Furthermore, at retail, our
balanced approach and pack-price strategies, together with our cross-merchandising
initiatives, resulted in strong execution in the market. We will continue to work with our
wholesaler partners to further improve effectiveness in the field.

Other U.S. notes…

Budweiser global volumes grew 7.3% in 1Q12

o In the United States, Budweiser brand health remained stable. We have already
announced several packaging activations for 2Q12 centered around the Major League
Baseball season and a repeat of the successful Red, White and Blue campaign.

Stella Artois grew by 1.3% globally in 1Q12

o The brand grew by over 23% (STWs) in the United States and by more than 70% in

Beck’s global volumes declined 4.2% in 1Q12. Continued strong growth in the brand’s
home market of Germany was offset by softer performances in the UK and the United

United States: 1Q12 began with the roll-out of Bud Light Platinum at the end of
January, and Shock Top Wheat IPA in early February. For Budweiser, we introduced
limited edition packaging for St. Patrick’s Day, and expect more to come as we
leverage the start of the Major League Baseball season and the 2012 Summer
Olympics. In 2Q12, consumers should see new variants from Shock Top and
Margaritaville, the launch of Michelob Ultra Light Cider, as well as Bud Light Lime
Lime-a-Rita in time for the Cinco de Mayo celebrations.

Breweries: ,

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