Anheuser-Busch InBev reports Q2 earnings, shakes up organizational structure | Progresiv
A-B, the world’s largest beer manufacturer, posted global revenue growth of 4.7 percent, to more than 14 billion dollars, as revenue per hectoliter increased 4 percent during the second quarter of 2018. The company also had gross profits of more than 8.8 billion dollars. 
Worldwide revenues for A-B’s global brands — Budweiser, Stella Artois, and Corona (outside of the U.S.) — increased 10.1 percent.
However, U.S. revenues declined 3.1 percent during Q2, with year-to-date revenues now down 2.8 percent. Despite those declines, the company’s revenue per hectoliter in the U.S. is up 2 percent on the year.
A-B CEO Carlos Brito characterized the company’s Q2 results as “solid,” noting that trends improved in many “key markets.” “We’re pleased to see our global brand portfolio accelerating its growth, especially Budweiser as the result of a highly successful FIFA World Cup activation,” he said.
Brito also addressed the company’s recent split of its High End craft and import division into two business units. By doing so, the company has put a greater focus on its Stella Artois brand with “a group of people that will really live and breathe Stella.”
“Our craft business is doing very well — way ahead of the segment, growing double-digits in a segment that this quarter was flat,” he added. “Because of that focus on the craft, Stella was sometimes being left with not the attention that it deserves.”
A-B also announced several organizational changes, including moving its “global growth and innovation team,” ZX Ventures, and its marketing department “under a common global lead.”
As part of the move, ZX Ventures chief disruptive growth officer Pedro Earp will now hold the dual role of ZX Ventures officer and chief marketing officer.
Former CMO Miguel Patricio will transition into global marketing role and report to A-B InBev CEO Carlos Brito while Bernardo Novick, vice president of client services in Latin America North, will lead ZX Ventures.
“We have to anticipate the future,” Brito told analysts and investors. “We believe a common global lead will help achieve our objectives of anticipating market and consumer trends and adopting ZX Ventures’ innovation approach more broadly.”
A-B also announced the creation of two new executive leadership roles that will both report to the CEO. The company appointed Lucas Herscovici to serve as chief non-alcoholic beverages officer, overseeing the company’s emerging non-alcoholic division, which now accounts for 10 percent of the company’s volume sales.
Pablo Panizza was also named chief “owned-retail officer,” in order to oversee its global brewpubs and Modelorama storefronts in Mexico.
Additionally, Brito said the company is changing its geographic structure by reducing its number of zones from nine to six with a focus on “top-line growth and value creation.” North America, Europe and Africa will not be affected by the changes. A-B created the additional zones following its merger with SABMiller to help with integration. “This restructuring is about growth, simplicity and top-line,” Brito said.
The organizational changes are slated to go into effect in January 2019. (www.brewbound.com)
