Summer Sports to Boost Worldwide Beer Sales

Global brewers are poised for a rebound in beer sales this year after a series of declines, with factors such as sports events, slower inflation, and weather patterns playing a role in the turnaround.

Heineken, the world’s second-largest brewer, reported its first quarterly volume growth in over a year in the first quarter of 2024. Rival Carlsberg also saw an increase in volumes after several quarters of decline.

Anheuser-Busch InBev, on the other hand, reported a smaller-than-expected drop in volumes, signaling a potential recovery. The company had been impacted by a boycott of its key U.S. brand Bud Light, but the effects are expected to ease as time passes.

Analysts predict a 1% rise in volumes for AB InBev over the full year, with expectations of a return to volume growth in the second quarter, marking the first growth since Q1 2023.

The upcoming summer of sports, including the Paris 2024 Olympics and the 2024 European Championship football tournament, is expected to further boost beer sales. Additionally, factors like improved weather conditions and rising sales in growth markets like Asia are set to support volume growth for brewers.

With cost increases easing and price rises slowing down, brewers are hopeful that volume growth will become a key revenue driver. This shift in trends is also expected to improve margins for companies in the industry.

Investors are optimistic about the potential for higher volumes driving growth and are willing to pay higher multiples for companies that demonstrate volume growth. Overall, the outlook for global brewers appears positive as they navigate a changing landscape in the beer market.