AB InBev and Carlsberg report drop in beer volumes

Anheuser-Busch InBev and Carlsberg, two of the world’s biggest brewers, reported a decline in beer volumes in the third quarter amid weaker demand in China.
The pair have joined a growing list of beer and spirit makers that has experienced reduced demand in recent months owing to consumers cutting back their spending and buying cheaper alternatives.
The Belgium-based AB InBev, the world’s No 1 brewer by size, with more than 500 beer brands including Stella Artois, Budweiser and Corona, reported a 2.4 per cent drop in volumes during the third quarter, steeper than analysts had expected.
Its performance in China was hit by a “soft industry”, particularly from spending weakness on the “on-premise channel”, such as bars and restaurants. Revenues in China fell 16.1 per cent as a result. In Argentina sales fell as consumer demand was weakened by inflationary pressures.
There were still green shoots in the United States, the company’s largest market, where organic revenues rose 1.5 per cent, compared with a 1.5 per cent decline forecast by analysts.
AB InBev said it would return $2 billion to investors as it narrowed its full-year earnings guidance to the top end of its existing range.
Its Danish counterpart Carlsberg, meanwhile, also said its quarterly performance had been affected by lower volumes in China offsetting “very strong growth” of its premium brands in markets such as India, Malaysia, Germany and Kazakhstan.
Organic sales volumes slipped 0.2 per cent in the three months to the end of September, it said, compared with the 0.4 per cent growth analysts had pencilled in, as volumes in Asia fell 5.2 per cent.
The maker of Kronenbourg 1664 and Somersby cider said that other weak spots were the UK, where volumes had been hurt by temporary supply chain constraints, and France, which was hit by softer demand and market share loss.
“It was a tough quarter, impacted by a challenging consumer environment and weather,” Jacob Aarup-Andersen, Carlsberg’s chief executive, said.
Despite the shift in consumer behaviour, Carlsberg said it still expected full-year organic operating profit growth to be between 4 per cent and 6 per cent. The company lifted its full-year guidance in August.