Anheuser-Busch InBev (A-B) recorded a positive Q4 in its U.S. business, marking a new “inflection point” for the company, leadership shared early this morning with the release of its Q4 and full-year 2024 financials, and accompanying earnings call with investors and analysts.
A-B’s U.S. revenue increased +0.8% in Q4 2024 versus Q4 2023, with revenue per hectoliter increasing +2.5%, “driven by revenue management initiatives and premiumization,” according to the release. Q4 sales to retailers (depletions) increased +0.5% year-over-year (YoY), while sales to wholesalers (shipments) declined -1.7%.
The final quarter performance was in stark contrast to A-B’s Q4 2023 figures for its U.S. business. One year ago, the company reported Q4 shipment declines of -12.7% YoY and a -11.9% depletions decline. Recall, 2023 was the same year A-B began battling a conservative-led boycott of Bud Light following an influencer ad, which accelerated ongoing declines for its then-leading beer brand.
Q4 2024 was also improved versus Q3, when U.S. shipments declined -0.2% and depletions -3%.
The latest improvement was driven by Michelob Ultra and Busch Light, which were the two largest share gainers across the beer category in Q4, according to A-B. The two brands also recorded “all-time high share” in Q4, a company spokesperson shared with Brewbound.
Michelob Ultra, now A-B’s leading brand, has a 7.84% share of beer dollar sales and 8.15% share of volume (case sales) in Circana-tracked off-premise channels year-to-date (ending January 26). Busch Light, A-B’s fourth largest brand by YTD dollar sales, has a 3.3% share of beer dollars and 5.09% share of volume.
A-B also highlighted continued growth from its spirits-based ready-to-drink (RTD) brands Nütrl and Cutwater, which both recorded double-digit dollar sales and volume growth in Q4. The two brands also represented about 58% of total spirits industry growth in Q4, according to A-B.
For full-year 2024, A-B’s U.S. revenue declined -2% YoY (revenue per hectoliter +1.9%). Shipments declined -3.9%, despite two additional selling days in 2024 versus 2023, while depletions declined -5%. A-B’s full year was impacted by a “somehow bad” summer, but was able to improve by the end of the year due to a stronger second half, CEO Michel Doukeris shared.
“I don’t think that the industry is at a positive volume point yet, but we’ve been seeing, dollar wise, the industry stable, growing,” Doukeris said.
A-B’s total business recorded a -1.4% decline in full-year volumes, and -1.9% YoY volume decline in Q4, driven by an “unusually soft consumer environment” in China and Argentina, which recorded a collective -13.2% decline in full-year volume. Total revenue increased +2.7% in 2024, reaching a record high of $59.8 billion.
“We are winning with consumers across our footprint,” Doukeris said. “Volumes grew in the majority of our markets. We estimate we gained or maintained market share in two-thirds of them, and our volumes increased by +0.9% in all other markets [beyond Argentina and China].”
Q4 earnings before interest, taxes, depreciation and amortization (EBITDA) increased +10.1%, to nearly $5.25 billion, for A-B’s total business. FY24 EBITDA increased +8.2%, to nearly $20.96 billion, landing just above the upper end of A-B’s guidance of +6% to +8%.
For 2025, A-B is projecting EBITDA growth between +4% and +8%, including “current assessment of inflation and other macroeconomic conditions.” Note, A-B had the same guidance for 2024, before adjusting to the higher end in Q3.
The company did not share volume guidance, and noted that it’s “too early” to know what FY25 will hold. However, the company is “encouraged by the momentum” it has so far in Q1, Doukeris shared.
Other highlights
The health of the U.S. market: Doukeris acknowledged “some economic pressures in some segments of the population” in the U.S., including “some zip codes where you have more Hispanic consumers” due to “this migration issue,” However, he believes the company will have a “better summer” in the U.S. in 2025 versus 2024.
All beer industry members have also been monitoring tariffs that could potentially impact the beer business, including aluminum tariff increases proposed earlier this month and expected to be implemented in March. An A-B spokesperson highlighted that “99% of the beer we sell in the U.S. is made in the U.S.” and the company spends approximately $7.6 billion annually “on goods and services from U.S. suppliers.”
Additionally, the company invested $2 billion in its U.S. facilities over the last five years, according to the spokesperson.
No comments were made on A-B U.S. CEO Brendan Whitworth’s push to rebrand domestic beer as “American beer,” or industry adaptation of the classification.
Super Bowl LIX: Doukeris highlighted the “incredible engagement” A-B’s brands received from its Super Bowl marketing, as well as a significant return on investment, with the company gaining share in both the on- and off-premise.
“We got incredible ads that were integrated very well in our execution, that they allowed us to have leadership in terms of visibility and engagement during the Super Bowl with consumers,” Doukeris said.
Michelob Ultra and Bud Light were the top two draft brands during Super Bowl weekend, Doukeris also noted, citing Beerboard data. He acknowledged that it’s been “a while” since A-B has been able to claim the top two spots.