AB InBev Crisis: Budweiser’s China & Brazil Markets Collapse—What’s Next for the Beer Giant?

Another day, another legacy brand gets gut-punched by shifting consumer tides. AB InBev—the brewing behemoth behind Budweiser—just got served a frosty reality check as demand in China and Brazil nosedives. No sugarcoating here: when two of your biggest markets tank simultaneously, it’s not a blip—it’s a reckoning.

The Hangover No One Saw Coming

China’s thirst for Bud? Evaporating. Brazil’s appetite? Flatlined. The numbers don’t lie, and neither does the market’s reaction—shares are sinking faster than a keg at a frat party. Meanwhile, crypto traders are sipping margaritas on the moon, watching traditional stocks flail. Irony’s a bitter brew.

Can AB InBev Pivot—Or Is It Last Call?

Cost-cutting? Sure. Brand refreshes? Maybe. But in an era where consumers crave authenticity (and maybe a side of DeFi with their IPA), can a corporate giant adapt? Or will it double down on the same old playbook—while the world moves on? One thing’s certain: in today’s economy, even beer money isn’t safe. Cheers to that.

Key Takeaways

• AB InBev reported lower-than-expected volume and revenue on weakness in China and Brazil.
• Overall volume for the parent of Budweiser and other major beer brands was down 1.9%, and beer volume fell 2.2%.
• Sales in all regions other than China and Brazil were higher, with U.S. sales bouncing back after a Q1 decline.

U.S.-listed shares of AB InBev (BUD) sank 12% Thursday as the world's biggest beermaker's volume and sales missed estimates on soft demand in China and Brazil.

The parent of the Budweiser and Michelob brands reported second-quarter adjusted earnings per share of $0.98 on revenue that ROSE 3% year-over-year to $15.00 billion. Analysts surveyed by Visible Alpha were looking for $0.96 and $15.28 billion, respectively.

Volume was down 1.9% to 143.3 million, also below forecasts. Beer volume fell 2.2%, while non-beer volume was actually up 0.3%.

Revenue slumped 6% in China as volumes declined more than 7%. Revenue in Brazil dropped nearly 2%, with volumes falling 6.5%. Revenue grew in all of AB InvBev's other global markets, with U.S. revenue 2% higher, bouncing back from a 5% slide in the first quarter.

CEO Michel Doukeris said "the operating environment remains dynamic" but noted the company's consistent execution of its strategy produced a solid first half of the year, and "reinforces our confidence in delivering on our outlook for 2025."

U.S.-listed shares of AB Inbev had been steadily growing after hitting a more than 2-year low in January. Even with today’s drop, they remain about 17% higher year-to-date. 

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