After AB InBev ended 2021 with stronger-than-expected results, analysts at GlobalData expect the world’s largest brewer to benefit from its investments in growth areas of the alcohol market.
“Premium and super-premium products continue to gain relevance globally with these segments recording 20% revenue growth in FY21 and are now representing approximately one-third of AB InBev’s total revenue,” said consumer analyst Peter Ramshaw.
“A large portion of people appear to be happy to splash out on higher-quality alcohol as a small self-reward after a difficult year. In fact, two in five (41%) of people globally surveyed by GlobalData during Q4 2021 described their purchasing habits in the alcoholic drinks space as leaning towards ‘high-quality products/ingredients’ as better value, in contrast to 24% primarily seeking out ‘low price/cheap’ solutions.”
Despite this, GlobalData highlighted that inflation threatens to hamper the post-Covid recovery and continues to weigh on the mind of consumers. In a recent survey, it found that 59% of people worldwide cite feeling ‘extremely’ or ‘quite’ concerned over their personal financial situation.
Ramshaw commented: “Instead of expensive nights out in bars or restaurants, we are seeing more experimentation within the home, with AB InBev’s hard seltzer and ready-to-drink (RTD) cocktail portfolios seeing strong growth. For instance, Cutwater, AB InBev’s canned cocktail range, recorded triple-digit volume growth across the year as a whole.
“There is also a shift towards more health-conscious purchasing decisions in the alcoholic sector, and AB InBev’s non-alcoholic beer portfolio has been reaping the benefits of this. The company is set to see continued success in the future, driven by its strong portfolio of premium and low ABV beers.”
