"Volumes in Brazil in March, in particular, were more challenging than expected," Anheuser-Busch...


"Volumes in Brazil in March, in particular, were more challenging than expected," Anheuser-Busch Inbev (BUD) says, impacted by high food inflation and a slowdown in the growth of disposable income. "We expect these factors to continue to put pressure on volumes in the short term. We are therefore revising our outlook for volume growth in Brazil and now expect that beer industry volumes in FY13 will be either flat or down low single-digits compared to FY12."

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Comments (3)
  • NYC Rider
    , contributor
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    This is extremely surprising to me. I would have thought that flat-to-down beer volume in Brazil would be a nearly zero probability event. Is it possible that BUD is being overly conservative? Or what is going on in Brazil?
    30 Apr 2013, 04:49 AM Reply Like
  • bestonlinenameever
    , contributor
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    Budweiser in Brasil is not popular. It is way over carbonated and very difficult to find in the 600ml or 1L bottles that people prefer. Brahma is popular, but seems to be preferred 3rd to Skol and Original.
    30 Apr 2013, 07:21 AM Reply Like
  • LST
    , contributor
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    Don't get Bud the brand confused with BUD, the ticker symbol. BUD is the ADR for Anheuser Busch InBev, based in Belgium where the ordinary shares trade under the ABI symbol. AmBev is controlled by BUD/ABI and sells mostly in Latin America (they also own Labatt's in Canada).Their brands in Brazil include Brahma and Antarctica, but they also sell Budweiser and Stella, two of their parent company's brands.

     

    Budweiser accounts for almost zero of their sales in Latin America. Beer volumes are down in Brazil because prices are way up. Costs have risen and they have passed that on to the consumers with a 7% increase in prices. Q1 numbers released today were, I think worse than expected, but shares are up almost 6%. There had been significant selling pressure on the shares since the start of the year, so bad news may have been reflected in the share price.
    30 Apr 2013, 02:51 PM Reply Like
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