World’s Biggest Brewer Notes A Pick Up Beer Sales In June

The world’s largest brewer has noted a bounce back in beer sales.

Following three months of continuous decline in sale of beer globally because of the novel coronavirus pandemic, an increase in its global sales volume in June was reported on Thursday by Anheuser-Busch InBev.

The brewer’s business had been heavily impacted by restrictions imposed because of the coronavirus pandemic resulting in a reduction in global sales volume for the company by about one third in April and about one fifth in May month on month.

Stay at home order sand lockdown in large parts of the world imposed to prevent the spread of the pandemic earlier this year resulted in closing down of bars, pubs and restaurants.

Some of its operations in countries including Mexico, South Africa and Peru, were also shut down by the company in April.

But there was a rebound of beer sales in June with a 0.7 per cent growth month on month, said the owner of Budweiser, Corona and Stella Artois beer brands.

For the quarter ended June, a 17.7 per cent year on year drop in revenues as reported by the Belgian company.  However, according to data provider Refinitiv, analysts had been expecting to see a drop in revenues for 31.5 per cent for the company for the quarter.

Shares in Brussels rose 5.4% on Thursday.

“Our performance in the second quarter was materially impacted by the Covid-19 pandemic, as expected,” the company said in a statement. “As the quarter progressed, however, we saw considerable improvement.”

It is expected that global alcohol makers will witness historic slump this year just a in many other industries. And according to a May forecast by IWSR Drinks Market Analysis, a global firm that tracks the sector, the global alcohol is expected to record a 12 per cent drop in sales for the year.

However compared to most of the other liquor categories, analysts and firms expect a faster recovery for beer this primarily because it is cheaper compared to other liquors such as wine or spirits.

Asia is the region that has shown the biggest signs of a rebound. According to the company, a strong comeback in China helped the company to record a return of business in the region during the second quarter.

“China delivered exceptional results, with its highest ever monthly volume,” it said in a statement.

But even within Asia, the scenario is dramatically different across countries.

Citing “a risk of impairment” related to its businesses in Africa, a writedown of $2.5 billion was also announced by AB InBev during its earnings call.

(Adapted from CNN.com)

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