Bud Light boycott cuts into AB InBev’s sales

London — Anheuser-Busch InBev on Wednesday reported a 2.6% rise in sales in the first quarter as the effect of a year-long Bud Light boycott again hurt the brewer, but the backlash is expected to have smaller effect on results in coming quarters.

Revenue growth at the world’s largest beer maker was in line with analysts’ expectations, while volumes were slightly better than expected, helped by sales of other products such as spirits-based drinks in cans.

The company, which makes Stella Artois and Corona beer, said strong growth in countries such as Mexico, Brazil and SA was offset by a worse performance in the Asia-Pacific region and North America, its largest region by revenue.

“We are encouraged by our results to start the year,” said CEO Michel Doukeris.

AB InBev sales in the US have been hit hard by a consumer boycott of Bud Light, which knocked it from the top spot as the best-selling US beer.

Its revenues in the country declined by 9.1%, with sales to retailers down 13.7% due to the boycott.

It has now been about a year since the boycott began, meaning that the three months to end-March should be the final quarter of real pain for AB InBev from it.

Figures from a year ago will include the boycott from now on, making for easier comparative numbers.

AB InBev reported a 5.4% increase in normalised earnings before interest, taxes, depreciation, and amortisation (ebitda) to almost $4.5bn. The company said it expected full-year ebitda to grow in line with its medium-term outlook of between 4% and 8%.

Reuters