Anheuser-Busch is getting ready to serve up their most recent earnings from 2023 Q4, and after a year filled with controversy for the brand’s most successful product, Bud Light, what should investors expect to hear from the brewing industry titan?
1. Controversy
It’s impossible to talk about Anheuser-Busch’s financial future without talking about it’s disastrous last year in marketing. After a Bud Light sponsored post with noted transgender influencer Dylan Mulvaney, a huge outcry from the right and subsequent backlash from the left resulted in lower sales, hate campaigns, and even a social media tantrum from Kid Rock. After multiple marketing executives resigned, Modelo beat Bud Light in summer sales for the first time ever, with Coors Light coming in just behind the Grupo Modelo offering. Even now, in the weeks following football’s biggest game, Corona beat Bud Light as the best-selling beer in the battle of the brews during one of the most-watched sporting events in American history, according to hospitality engagement platform Union. With sales of Bud Light down, concern for Anheuser-Busch’s stock rises
2. Competition
It’s no mystery that Modelo and Corona have taken crowns from Bud Light, but frankly, there’s a lot more to drink than beer on the market. Ready to drink beverages like hard cider, hard seltzer, and other flavored malt beverages are becoming a favorite among younger demographics, with almost half of all 21-34 year olds buying these types of beverages in a year-long study ending in January 2022, according to Penn State Professor Kathy Kelly.
3. Holdings
Anheuser-Busch has done well to protect itself from any one brand failing. Even with Bud Light slipping in popularity to a brand like Corona, it won’t have too much of an effect on earnings. Anheuser-Busch has diversified the brands they hold as well, with multiple cider and seltzer brands that hold respectable market shares, like Bon Viv and Johnny Appleseed. Such a wide-ranging portfolio is likely to protect Anheuser-Busch from any dramatic shifts in earnings or expectations.
Anheuser-Busch is still not in the clear. Lingering customer backlash, a potential brewery strike, and expansion of available products in the market threaten Anheuser-Busch’s earnings expectations. However, despite market obstacles, analysts from Zacks Equity Research predict that AB InBev is likely to report year-over-year growth. Tune in to Yahoo Finance to see how AB InBev’s earnings stack up.
Video Transcript
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- Anheuser-Busch is getting ready to serve up their most recent earnings from Q4 2023. And after a year filled with controversy for the brand's most successful product, Bud Light, what should investors expect to hear from the brewing industry titan?
One, controversy. It's impossible to talk about Anheuser-Busch's financial future without talking about its disastrous last year in marketing after a Bud Light-sponsored post with noted transgender influencer. Dylan Mulvaney, a huge outcry from the right and subsequent backlash from the left resulted in lower sales.
Hate campaigns and even a social media tantrum from Kid Rock. After multiple marketing executives resigned, Modelo beat Bud Light in summer sales for the first time ever with Coors Light coming in just behind the Grupo Modelo offering. Even now in the weeks following football's biggest game, the Super Bowl, Corona beat Bud Light as the best-selling beer in the Battle of the brews. With sales of Bud Light down, concern for Anheuser-Busch's stock rises.
Two, competition. It's no mystery that Modelo and Corona have taken crowns from Bud Light. But, frankly, there's a lot more to drink than beer on the market.
Ready-to-drink beverages like hard cider, hard seltzer, and other flavored malt beverages are becoming a favorite among younger demographics. With almost half of all 21 to 34-year-olds buying these types of beverages in a year-long study ending in January 2022 according to Penn State Professor Kathy Kelley.
Holdings. Anheuser-Busch has done well to protect itself from any one brand failing. But even with Bud Light slipping in popularity to a brand like Corona, it won't have too much of an effect on earnings. Anheuser-Busch diversified the brands that they hold as well with multiple cider and seltzer brands that hold respectable market shares. Such a wide-ranging portfolio is likely to protect Anheuser-Busch from any dramatic shifts in earnings or expectations.
Anheuser-Busch is still not in the clear. Lingering customer backlash, a potential brewery strike, and expansion of available products in the market threaten Anheuser-Busch's earnings expectations. However, despite market obstacles, analysts from Zacks Equity Research predict AB InBev is likely to report year-over-year growth.
Tune in to Yahoo Finance to see how AB InBev's earnings stack up.
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