InBev profit falls, still buying Anheuser-Busch
By Noah Davis • Nov 6th, 2008 • Category: Beer News
InBev, the Belgium company set to purchase Anheuser-Busch and become the world’s largest seller of beer, announced that third quarter profits fell 14 percent compared to last year. (The company still made $575 million from July through September, however, so don’t shed any tears.) While sales rose 7.7 percent, operating costs skyrocketed due to the increased price of materials, specifically grain malt and aluminum.
Despite falling profits, InBev will continue its $52 billion purchase of A-B (and also Stella Artois). Both transactions will be completed by the end of the year. The American company saw profits fall, but increased its market share in the U.S. to 49.2 percent. Even Bud Light Lime sold well.
It will be interesting to see how InBev’s financial hardship alters A-B’s sports marketing position, which DRAFTMag.com’s David Sweet detailed in October.
