E-Malt.com News article: USA: AB InBev could be about to ramp up its craft beer activity - analyst

Anheuser-Busch InBev could be about to ramp up its craft beer activity after recent industry figures show its current craft breweries lagging the US market, an analyst has forecast.

Citing IRI data, SIG's Pablo Zuanic wrote this week that AB InBev's US craft beer volumes in the eight weeks to 17 December grew by just over 2%, below the estimated mid-single-digit growth for overall US craft beer. Zuanic said this was a poor performance, especially for a company that is under-represented in the craft area - about 2% of AB InBev's portfolio, compared to 12% for the US industry.

To help boost growth, Zuanic believes AB InBev "will likely need to ramp up its craft strategy". The analyst said this could include picking up its buy option on Craft Brew Alliance, in which AB InBev already owns a minority stake. As part of an agreement signed last year, AB InBev has the option to take full control of CBA in a clause that expires in August 2019.

AB InBev has bought ten US craft brewers so far, starting with Chicago's Goose Island in 2011 and ending in May with North Carolina's Wicked Weed. Goose Island has more than quadrupled volumes since its takeover, and its beers are now produced around the country. However, for other acquisitions, AB InBev has concentrated on regional sales.

Digging deeper into IRI's eight-week numbers, Zuanic said Goose Island volumes fell 10% in the eight-week period and Shock Top was down 13%. The brands are AB InBev's biggest craft volume players, representing about 60% of its total craft beer business. The biggest increases were for Elysian (+70%) and Karbach (+8%).

This is not the first time that Zuanic has highlighted a potential sale of CBA. Last month, he said AB InBev may take full control of the company within the next year.


04 January, 2018