Anheuser-Busch InBev boosts spending in an effort to counter the booming craft beer trend
The world’s largest brewer plans to invest $2 billion in its American breweries. $500 million will be spent each year from now until 2020. Budweiser, AB-InBev’s largest brand has seen declining volumes and a falling market share since 2014…
By Just Beer Community Collection on May. 16, 2017
AB-InBev announced their budget and investment areas over the next three years. Those areas include: updates and betterments to existing facilities across the US, new buildings/expansions, improved capabilities for production, and investments in packaging and distribution projects.
You can get AB-InBev’s planned budget here.
AB-InBev – “Guys, we’re here for the long run”
“It is a vote of confidence in wholesalers and the American economy and brewing industry,” said Joao Castro Neves , president and CEO of the U.S. arm of Anheuser-Busch, in an interview with Fortune. “Guys, we are here for the long run.”
And What About Craft Brewers?
It’s likely that this investment in AB-InBev will not only include improving existing brands, but also contribute to the continued effort of acquiring craft breweries. AB-InBev’s division, “The High End” has been acquiring craft brands since 2011, including breweries like: Goose Island, Blue Point, 10 Barrel, Elysian, Golden Road, Virtue Cider, Four Peaks, Breckenridge Brewery, Devils Backbone, SpikedSeltzer, Karbach Brewing Co., and it’s most recent acquisition, Wicked Weed.
Castro Neves sees the company’s craft and smaller-scale producers as key to keeping up with rapid shifts in customer preferences. “They are very close to consumers, and they help us stay ahead of the curve,” he said. – Chicago Tribune
Positive Outcome for AB-InBev
While the outcome of a $2 billion investment in it’s brand is unknown, it appears as though their initial efforts are having a positive affect on their bottom line–AB-InBev’s shares have shot up 20% since December 2016.
Thinking about investing in AB-InBev?
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