About a fifth of the industry’s revenue in Africa, and a quarter of the profits, come from South Africa. On a continent where the average person drinks 10 liters of beer a year - compared with 75 liters in the United States and 66 liters in Brazil - establishing its premium brands and selling high volumes of mid-tier beers will be key, as will breaking into countries dominated by other brewers. See you at the top! When he isn’t writing, he is usually out for a run, or relaxing to the music of the Grateful Dead. The company also said recent disposals would reduce its net debt-to-EBITDA ratio to below four times at the end of 2019, a year ahead of target, from 4.6 at the end of June. The company as a whole targets revenue per hectolitre growth above inflation and cost rises below inflation. BRUSSELS — Anheuser-Busch InBev saw more than $13 billion wiped off its market value on Friday, after a profit warning and weaker-than-expected third-quarter earnings growth sparked by reduced demand for its beer in Brazil and South Korea. All quotes delayed a minimum of 15 minutes. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. A-B InBev had warned of some weakness after a strong second quarter when beer sales rose at their fastest pace in more than five years. Shares in the firm were down 9% by 1318 GMT, set for their second biggest daily drop in a decade. As part of its new strategy, AB InBev is reinforcing its volume play with more frequent discounting for Carling and another local favorite, Castle, retailers say. Quarterly revenue dropped 5.9% in the U.S., which was a relatively strong result, due to the "off-premise" channel, with many bars and restaurants remaining closed and people drinking at home. Performance for the quarter in the U.S. was driven by the success of its premium brands, the company said. South Africa, Zambia and Uganda had strong results and our Nigeria operation grew double-digit volume and revenue to become the second largest brewer in the country. Let's conquer your financial goals together...faster. Also let go were morning anchor Marissa Hollowed and meteorologist Meghan Danahey. At 19 rand ($1.54) for a one-liter bottle, Mashego is paying about 20 percent more than for 750 ml bottles but gets a third more beer. SABMiller’s African presence was considered the main prize in AB InBev’s $107 billion acquisition of the world’s second biggest brewer - given the potential for growth on the continent as beer sales in other regions stagnate. Oliver from UBS said the bigger bottles were also a good way to drive sales in the near term with new drinkers who would probably help push up margins further in the long run. The globally renowned group commands a 30% share of the global market. Returns as of 10/14/2020. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Despite current impacts, RGA and investors still see some signs of longer-term optimism. At the Zio liquor store in Sasolburg, 80 km (50 miles) south of Johannesburg, shoppers pushed trolleys laden with Castle on promotion last month for Freedom Day celebrations to mark South Africa’s first post-apartheid elections in April 1994. The iconic Budweiser sign can be seen atop the Bevo Packaging Plant - the original bottling building built in 1917 - on Tuesday, Oct. 13, 2015, at A-B InBev's operation in St. Louis. Log in or Activate your account. “It gets (price sensitive consumers) into a brand, and then the view is that those people over time will probably also buy the smaller size, so work up that price ladder over time.”. “Both AB InBev and Heineken are pursuing an ambitious growth agenda. “In comparison to where we have been, these markets are still being developed.”. AB InBev’s move marks a departure from its typical playbook of increasing margins and profits principally through higher prices and rigorous cost control, tactics honed through its close association with private equity firm 3G Capital. Economic challenges in other markets, including Argentina and South Africa, also led the company to push more affordable lagers, meaning revenue per liter growth would be slightly behind inflation. You can cancel at any time. A-B InBev said it still expected strong overall revenue growth in 2019 but challenges in Brazil and South Korea would continue into the fourth quarter, so the company only expected "moderate" growth in core profit. JOHANNESBURG/BRUSSELS/LONDON (Reuters) - Sitting outside the ramshackle Vimba Tavern in Johannesburg’s Alexandra township, Patrick Mashego swigs from a one-liter bottle of Carling Black Label, South Africa’s most popular beer.
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