Group 1: Starbucks and Strategic Partnerships - Starbucks has announced a strategic partnership with Boyu Capital to establish a joint venture for its retail operations in China, with Boyu holding up to 60% equity and Starbucks retaining 40% [1][20] - The joint venture is based on an enterprise value of approximately $4 billion, and Starbucks expects its retail business in China to exceed $13 billion [1][20] - The new joint venture will be headquartered in Shanghai and aims to expand the number of Starbucks stores in China from 8,000 to 20,000 [1][20] Group 2: Market Trends and Performance - The trend of international restaurant brands, including Starbucks and Pizza Hut, focusing on lower-tier cities is becoming increasingly significant due to better revenue prospects in these markets [3] - Starbucks has reported that new stores opened in the last two years have contributed to same-store sales growth above average, with many of these new locations in lower-tier markets [3] - Yum China reported a 4% year-over-year revenue growth to $3.2 billion in Q3 2025, with KFC and Pizza Hut also showing positive revenue trends [3] Group 3: Consumer Behavior and Pricing - There is a noted decline in average transaction value for Starbucks, Pizza Hut, and KFC, which may benefit their expansion into lower-tier markets [5] - The overall dining market in major cities like Beijing and Shanghai is contracting, prompting brands to seek growth in less saturated markets [4]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported top-line growth of 0.9% and EBITDA growth of 3.3%, with margin expansion of 85 basis points [8][21] - Underlying EPS increased by 1% in U.S. dollars and 0.3% in constant currency, reaching $0.99 per share [21][22] - Revenue per hectoliter increased by 4.8%, driven by disciplined revenue management and a portfolio of mega brands [8][22] Business Line Data and Key Metrics Changes - The premium beer, non-alcohol beer, and beyond beer segments continued to outperform, with the quarterly GMV of the BIS marketplace reaching nearly $1 billion [5][8] - In the U.S., the portfolio saw a revenue increase in the mid-40s, led by Cutwater, which grew revenue in the triple digits [9] - Michelob ULTRA became the number one brand in the industry by volume year-to-date, gaining market share in all 50 states [5][9] Market Data and Key Metrics Changes - Revenue increased in 70% of the company's markets, with bottom-line growth in four of five operating regions [7][8] - In China, revenue declined by 15.2%, with volumes underperforming the industry due to a soft consumer environment [13] - In Brazil, revenue declined by 1.9% due to unseasonable weather and a softer consumer environment, but market share gains were achieved [11][12] Company Strategy and Development Direction - The company is focused on executing its strategic priorities, including investments in brands and innovations to drive market share gains [4][5] - A $6 billion share buyback program was approved, alongside an interim dividend of EUR 0.15 per share, reflecting confidence in long-term growth [7][22] - The company aims to enhance its execution in China and strengthen its route to market, particularly in the in-home channels [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in China and unseasonable weather in the Americas but expressed confidence in the resilience of the strategy [4][5] - The outlook for the beer category remains positive, with expectations for industry volume growth as conditions normalize [12][40] - The company anticipates that the FIFA World Cup in North America in 2026 will provide significant opportunities for growth [25][40] Other Important Information - The company reported strong free cash flow generation, which has increased capital allocation flexibility [6][22] - The partnership with Netflix was announced, aiming to create co-marketing campaigns and enhance consumer experiences [16] Q&A Session Summary Question: Thoughts on the $6 billion buyback program - Management indicated that the buyback program reflects improved balance sheet flexibility and is part of a disciplined capital allocation strategy [27][29] Question: Outlook for global beer volume growth - Management noted that the potential for category growth remains around 1% under normal conditions, with opportunities for expansion in developing markets [30][31] Question: Volume growth outlook for 2026 - Management expressed optimism for volume growth in 2026, particularly with the FIFA World Cup and improving consumer sentiment [40][41] Question: Impact of input costs in 2026 - Management stated that they do not provide specific guidance on cost of goods sold but highlighted that hedging policies are in place to manage FX impacts [43][45] Question: Performance in Brazil and Colombia - Management noted that while Brazil faced challenges due to weather, Colombia continued to show strong volume growth and market share gains [52][76] Question: Beyond beer category growth - Management indicated that beyond beer now represents around 2% of total volume and is growing rapidly, with higher profitability compared to traditional beer SKUs [81][82] Question: Gross margin performance - Management attributed gross margin performance to a strong brand portfolio and operational efficiencies, with ongoing opportunities for improvement [84][85]

Financial Data and Key Metrics Changes - In Q3 2025, the company experienced top-line growth of 0.9% and EBITDA growth of 3.3%, with margin expansion of 85 basis points [8][21] - Underlying EPS increased by 1% in U.S. dollars and 0.3% in constant currency, reaching $0.99 per share [21][22] - Revenue per hectoliter increased by 4.8%, driven by disciplined revenue management and a portfolio of premium brands [8][21] Business Line Data and Key Metrics Changes - The premium beer, non-alcohol beer, and beyond beer segments continued to outperform, with the quarterly GMV of the BIS marketplace reaching nearly $1 billion [5][8] - In the U.S., the portfolio saw a revenue increase in the mid-40s, led by Cutwater, which grew revenue in the triple digits [9] - Michelob Ultra became the number one brand in the industry by volume year to date, gaining market share in all 50 states [9][10] Market Data and Key Metrics Changes - Revenue increased in 70% of the company's markets, with bottom-line growth in four of five operating regions [8][21] - In China, revenue declined by 15.2%, with volumes underperforming the industry due to a soft consumer environment [13] - In Brazil, revenue declined by 1.9% due to unseasonable weather and a softer consumer environment, but market share gains were achieved [11][12] Company Strategy and Development Direction - The company is focused on executing its strategic priorities, including investments in brands and innovations to drive market share gains [4][5] - A $6 billion share buyback program was approved, alongside an interim dividend of €0.15 per share, reflecting confidence in long-term growth [7][22] - The partnership with Netflix aims to create co-marketing campaigns and enhance consumer experiences, integrating beer with entertainment [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in China and unseasonable weather in the Americas but expressed confidence in the resilience of the strategy [4][5] - The outlook for the beer category remains positive, with expectations for industry volume growth as conditions normalize [12][40] - The company anticipates a significant opportunity in 2026 with the FIFA World Cup in North America, which is expected to enhance brand visibility and consumer engagement [25][41] Other Important Information - The company is actively managing its debt portfolio, announcing the redemption of $2 billion of outstanding bonds [7][22] - The growth of the non-alcohol beer segment is seen as a key opportunity, with the portfolio growing by 27% [15][81] Q&A Session Summary Question: Thoughts on the $6 billion buyback program and its implications for capital allocation - Management indicated that the buyback program reflects improved balance sheet flexibility and is part of a disciplined capital allocation strategy [27][29] Question: Outlook for global beer volume growth - Management noted that the medium-term outlook for global beer is around 1% growth, with potential for further growth through beyond beer propositions [28][30] Question: Volume growth expectations for 2026 - Management expressed optimism for volume growth in 2026, particularly with the FIFA World Cup and improving consumer sentiment [40][41] Question: Impact of input costs and FX on 2026 - Management stated that while they do not provide specific guidance on costs, they hedge 12 months ahead and expect a more normalized environment in 2026 [43][45] Question: Performance in Latin America, particularly Brazil and Colombia - Management highlighted that while Brazil faced challenges due to weather, Colombia continued to show strong performance and volume growth [52][53] Question: Insights on the Champions League sponsorship and ROI - Management emphasized the importance of integrating brands with major events and cultural moments to enhance long-term brand positioning [62][63] Question: Success of Cutwater and its sustainability - Management noted that Cutwater has become a top 10 spirits brand in the U.S., driven by consistent brand building and strategic investments [66][67]

Financial Data and Key Metrics Changes - In Q3 2025, the company achieved top-line growth of 0.9% and EBITDA growth of 3.3%, with margin expansion of 85 basis points [7][21][25] - Underlying EPS increased by 1% in U.S. dollars and 0.3% in constant currency, reaching $0.99 per share [21][25] - Revenue per hectoliter increased by 4.8%, driven by disciplined revenue management and a portfolio of mega brands [7][21] Business Line Data and Key Metrics Changes - The premium beer, non-alcohol beer, and beyond beer segments continued to outperform, with the quarterly GMV of the BIS marketplace reaching nearly $1 billion [5][6] - In the U.S., revenue growth in the mid-40s was led by Cutwater, which grew revenue in the triple digits [9] - Michelob Ultra became the number one brand in the industry by volume year to date, gaining market share in all 50 states [9][10] Market Data and Key Metrics Changes - Revenue increased in 70% of the company's markets, with bottom-line growth in four of five operating regions [8][21] - In China, revenue declined by 15.2% due to a soft consumer environment, with the company focusing on enhancing execution and route to market [13][14] - In Brazil, revenue declined by 1.9% driven by unseasonable weather, but market share gains and disciplined management offset the decline [11][12] Company Strategy and Development Direction - The company is focused on consistent execution of its strategy, investing in brand power and innovation to drive market share gains [5][6] - A $6 billion share buyback program was approved, alongside an interim dividend of €0.15 per share, reflecting confidence in long-term growth [6][24] - The company aims to leverage partnerships, such as with Netflix, to enhance brand visibility and consumer engagement [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in China and unseasonable weather in the Americas but expressed confidence in the resilience of the strategy [4][5] - The outlook for the beer category remains positive, with expectations for industry volume growth as conditions normalize [12][41] - The company anticipates a strong performance in 2026, driven by events like the FIFA World Cup in North America [27][41] Other Important Information - The company is actively managing its debt portfolio, announcing the redemption of $2 billion of outstanding bonds [6][24] - The non-alcohol beer segment is seen as a key growth opportunity, with net revenue growing by 27% [16][86] Q&A Session Summary Question: Thoughts on the $6 billion buyback program - Management indicated that the buyback program reflects improved balance sheet flexibility and is part of a disciplined capital allocation strategy [30][32] Question: Outlook for global beer volume growth - Management noted that the long-term potential for the beer category is around 1% growth, with opportunities for further growth through beyond beer propositions [34][35] Question: Volume growth expectations for 2026 - Management expressed optimism for volume growth in 2026, citing reduced consumer pressure from lower inflation and the impact of the FIFA World Cup [41][42] Question: Impact of input costs in 2026 - Management did not provide specific guidance on input costs but indicated that hedging policies are in place to manage FX risks [45][47] Question: Consumer improvement in Brazil and Colombia - Management noted that while Brazil faced challenges due to weather, Colombia continued to show strong volume growth and market share gains [56][57] Question: Performance of Cutwater brand - Management highlighted Cutwater's significant growth, becoming one of the top 10 spirits brands in the U.S., and emphasized the brand's potential for further expansion [70][71]

Financial Performance - The company's EBITDA increased by 3.3% in 3Q25[12] - The company's revenue per hl grew by 4.8% in 3Q25[13] - The company announced a share buyback program of $6 billion[12] - The company announced a debt redemption of $2 billion[12] - The company announced an interim dividend of €0.15 per share[12] - The company's underlying EPS (USD) increased by 1.0%[13] Regional Performance - North America's revenue decreased by 0.7%[17] - Middle Americas' revenue increased by 4.2%[17] - South America's revenue increased by 2.0%[17] - EMEA's revenue increased by 3.0%[17] - APAC's revenue decreased by 9.0%[17] Brand Performance - No-alcohol beer revenue increased by 27%[12] - Beyond Beer revenue increased by 27%[12] - BEES Marketplace quarterly GMV increased by 66%, approaching $1 billion[12]

Core Insights - The decline in volumes is attributed to poor performance in China and unseasonable weather conditions in Brazil [1] Group 1 - The company experienced a fall in volumes [1]

Core Insights - Anheuser-Busch InBev reported continued growth in both top and bottom lines, driven by the strength of its megabrands and innovations in balanced choices and Beyond Beer [1] Financial Performance - The company has made significant progress in deleveraging and has announced a new share buyback program worth 6 billion USD [1]

Group 1: Beer Index and Economic Indicators - China accounts for nearly one-fourth of global beer consumption with an annual drinking volume of 40 million kiloliters, leading to the emergence of the "beer index" phenomenon, where low-end beer sales are negatively correlated with economic conditions, while high-end beer serves as a leading indicator of economic recovery [1] - During the decade following Japan's economic bubble burst, beer sales in Tokyo convenience stores dropped by 37%, highlighting the link between the decline of after-work drinking and rising unemployment [1] - In 2016, when China's manufacturing PMI fell below the neutral line, domestic low-end beer sales decreased by 12.3%, while high-end beer market share grew by 5.8% [1] Group 2: Changing Consumer Scenarios - The traditional "canteen beer" scene for blue-collar workers is being replaced by the "event socializing" scene created by Generation Z, with 61% of young consumers preferring to watch games in bars and willing to pay a 30% premium for craft beer [2] - The rise of female consumers has led to the emergence of the "low-calorie beer" segment, with the zero-sugar series of Harbin Beer growing by 122% in 2024, targeting women's demand for "light socializing" [2] - Qingdao Beer reported a 27% increase in high-end product line sales, with the "IPA craft" series achieving a 43% repurchase rate in esports viewing scenarios [2] Group 3: Beer Economy and Macro Trends - The beer index resonates with macroeconomic cycles, as seen in the 1980s when the Los Angeles Olympics boosted high-end beer consumption, leading to a 58% increase in high-end beer prices over ten years [3] - In the first half of 2025, high-end beer market share reached 26%, up 9 percentage points from 2019, aligning with a manufacturing investment growth rate of 11.3% [3] - Hebei province hosted 5,552 events in the first half of 2025, resulting in a 23% increase in local beer consumption, while equipment manufacturing electricity consumption grew by 19% [3] Group 4: Innovations in the Beer Industry - The consumption upgrade is driving the beer industry into a "flavor revolution," with 90s consumers prioritizing original wort concentration over price sensitivity, leading to cross-border products like "IPA + sparkling water" [4] - The global non-alcoholic beer market is expected to exceed $20 billion by 2025, with China's market growing at 34% [4] - Qingdao Beer developed a "probiotic beer" that adjusts gut flora, successfully entering the fitness market with protein content as a new selling point [4] Group 5: Virtual and Physical Integration in Beer Economy - Under the influence of the metaverse, the beer economy is presenting a new form of virtual-physical integration, with Budweiser's virtual beer "NFT airdrop" generating over ten million in transactions on blockchain platforms [5] Group 6: Cultural Narratives in Beer Economy - The collective emotions of an era are reflected in beer consumption, from Japan's economic bubble to modern social interactions, illustrating the enduring human pursuit of pleasurable experiences in a material-rich age [6]

Core Insights - Anheuser-Busch InBev is expected to report third-quarter 2025 earnings on October 30, with anticipated year-over-year revenue growth [1][10] Revenue and Earnings Estimates - The Zacks Consensus Estimate for AB InBev's quarterly revenues is $15.4 billion, reflecting a 2% increase from the previous year [2] - The consensus estimate for earnings per share is 97 cents, indicating a 1% decline from the prior year [2] - The earnings estimate has decreased by 4% over the past 30 days [2] Recent Performance - In the last reported quarter, AB InBev's earnings per share exceeded the Zacks Consensus Estimate by 4.3%, with an average earnings surprise of 10.1% over the last four quarters [3] Factors Influencing Q3 Results - The company's results are expected to benefit from strategic measures such as pricing actions, premiumization, and revenue management initiatives [4] - Strong consumer demand for AB InBev's brand portfolio is likely to have contributed positively to sales performance [4] - The focus on premium beer offerings aligns with consumer preferences, and the expansion of the Beyond Beer portfolio is expected to support performance [5] Challenges Facing the Company - AB InBev faces significant pressure from soft volumes in key markets like China and Brazil, indicating that revenue growth is primarily driven by price/mix rather than consumption [6] - The company is experiencing volume pressures due to shifting consumer preferences and competition from non-alcoholic alternatives [6] - Elevated costs from commodity inflation and supply chain issues, along with a challenging macroeconomic environment, are anticipated to negatively impact quarterly performance [7] Valuation and Stock Performance - The stock has a forward 12-month price-to-earnings ratio of 15.05X, compared to a five-year high of 23.71X and the industry average of 14.02X [9] - Year-to-date, AB InBev shares have increased by 22.4%, contrasting with a 4.6% decline in the industry [12]

Core Insights - Anheuser-Busch InBev is reintroducing the Bud beer brand to the German market to celebrate its 150th anniversary next year, coinciding with the growth of international lager beers in Germany [1][4] - The beer will initially be sold exclusively in Rewe stores, with plans to expand to other retail outlets and bars throughout Germany [2] - The brewing of Anheuser-Busch Bud will take place within the European Union, although specific breweries have not been disclosed [3] Market Context - Germany's beer sales declined last year, with approximately 8.3 billion liters sold, marking a 1.4% decrease from 2023, and domestic consumption fell by 2% to 6.8 billion liters [5] - AB InBev reported a slight decline of 0.1% in beer volumes in Europe for the first half of the year, which was considered an outperformance compared to the industry in five out of six key markets [6] - The company noted that industry volumes were estimated to be flat in the second quarter of 2025, indicating a potential stabilization in the market [6]