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Drinks

AB Inbev's Price Rises Offset Poor Sales

By square1
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AB Inbev's Price Rises Offset Poor Sales

Net profits at Anheuser-BuschInBev, the world’s largest brewer, rose to US$1.45 billion in the second quarter of 2011, rising from US$1.15 billion a year ago. Sales for the period hit US$9.95 billion, up from US$9.17 billion in 2010. An increase in prices helped to compensate for a weakened sales position in the second quarter results.

The producer of Beck’s, Budweiser and Stella Artois saw its core profits rise despite struggling sales in Brazil and the US; bad weather and rising petrol prices attributed to a 3.4 per cent fall in sales to retailers while US shipments fell by 1.7 per cent.  Market share fell by 0.5 per cent in the US. Beer volumes fell by 2.6 per cent in Brazil. Overall, the underlying picture remains strong,” said Stuart MacFarlane, president of AB InBev UK. “We continue to consolidate our focus around core brands most recently announcing a significant sponsorship deal to support The FA Cup over the next three years. This focus on our core brands, and continued innovation, is a proven strategy that has delivered strong performance in the face of unprecedented economic challenges and duty increases over many years.” 

InBev experienced a 12 per cent increase in demand for its products in China; this helped increase its worldwide beer volumes by 0.3 per cent to 90m hectolitres. (15 Aug) 

© 2011 - ESM: European Supermarket Magazine

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