AB InBev predicts surge in low- and no-alcohol beer sales

AB InBev CEO Carlos Brito believes 20% of the company’s sales volumes will come from its low- or no-alcohol portfolio by 2025.

In a conference call following the release of AB InBev’s full-year results, Brito shed light on the company’s strategy to expand sales and appeal to consumers who want to limit their alcohol intake.

He said that now around 8% of the company’s volumes came from its low- or no-alcoholic lines. “We want to get to 20% by 2025. So we’re not starting from zero, quite the opposite. The big thing that will accelerate this, in my view, is two things.

“First, the category expansion model because it’s showing us there are opportunities in adjacencies, easy drinking and flavored liquids, that we can explore.

“And the second one is that now we already have five of our main countries in which NABLAB, or non-alcohol beer and low-alcohol beer, represents more than 20% and in some even 30%.”

Brito drew attention to the higher margins of the NABLAB sector. “I think this is going to be a big motivation for our people because they’re going to be inspired.

“There is a toolkit to be shared with other countries. Again, so we’re not starting from zero, the margins are very interesting, and category expansion shows the way on how to use some of those products to enter new categories or new occasions.”

AB InBev’s range of low- and no-alcohol beers includes Beck’s Blue, Bud Light and Corona Cero. Last year, the company launched an alcohol-free Budweiser Prohibition beer in the UK.

Speaking of the launch, a spokesperson said: “Budweiser Prohibition is for those who love beer, who will never sacrifice on quality or taste and want to enjoy freely. After all, beer isn’t about alcohol; it’s about using the best, natural ingredients and brewing with passion.”

An AB InBev study released in 2016 found that one third of UK consumers had tried alcohol-free beer with almost as many unable to tell the difference between regular alcoholic varieties.

In its full-year results, the company saw its net sales rise 5.1% year-on-year to $56.4 billion and operating profits increase 13.4% to $22.1 billion as it benefited from the integration of SAB Miller.