Core Viewpoint - The "2025 New Consumption Summit Forum" successfully concluded in Beijing, highlighting the importance of quality and sustainable development in the consumer industry [1] Group 1 - Budweiser Investment (China) Co., Ltd. was awarded the "Excellence Quality Leading Award" at the forum for its outstanding quality and sustainable development practices [1]

Core Insights - AB InBev is strategically positioned in the global alcoholic beverage market, focusing on premiumization, digital transformation, and brand equity investment [1][2][5] Premiumization Strategy - Premiumization is a key growth driver for AB InBev, with significant investments in a diverse portfolio of global and specialty brands [2] - In Q3 2025, premium and super-premium brands showed strong performance, while the above-core portfolio remained flat due to challenges in China [2][10] Digital Transformation - AB InBev is enhancing its digital capabilities to connect with customers, focusing on monetizing its ecosystem through technology-led platforms [3][4] - The BEES platform generated $13.3 billion in gross merchandise value (GMV), marking an 11% year-over-year increase, with quarterly GMV up 66% [3][10] - Digital platforms contributed approximately 70% to revenues in Q3 2025, with direct-to-consumer (DTC) channels reaching 11.9 million consumers [4][10] Market Position and Performance - AB InBev's integrated model allows it to leverage scale while adapting to local market dynamics, resulting in a 3% year-over-year revenue increase for megabrands [5] - The company is expanding its Beyond Beer portfolio, which includes various ready-to-drink (RTD) options, to meet rising consumer demand [5] Stock Performance and Valuation - AB InBev shares have increased by 24.7% year-to-date, contrasting with a 3.5% decline in the industry [8] - The company trades at a forward price-to-earnings ratio of 15.34X, higher than the industry average of 14.29X [9] Earnings Estimates - The Zacks Consensus Estimate indicates a year-over-year earnings growth of 4% for 2025 and 12.1% for 2026, although estimates have been revised downward recently [11][12]

Core Insights - Anheuser-Busch InBev is a leading global beer company with a focus on growth opportunities and a recent price target set by Wells Fargo at $75, indicating a potential increase of 22.63% from its current price of $61.16 [1][5] Company Strategy - The potential acquisition of BeatBox, valued at $700 million, is aimed at diversifying product offerings and addressing challenges faced by the Bud Light brand [2][5] - The company's market capitalization is approximately $119.5 billion, showcasing its significant presence in the beverage industry [4] Stock Performance - BUD's stock has experienced volatility, with today's price fluctuating between $61.16 and $61.59, and a yearly range between $45.94 and $72.13, indicating growth potential [3][5] - The trading volume for BUD today is 239,683 shares, reflecting active investor interest driven by strategic moves and future growth potential [4]

Group 1 - Anheuser-Busch InBev is reportedly close to acquiring BeatBox Beverages, valuing the company at approximately $700 million, with a deal potentially imminent if negotiations proceed smoothly [1] - BeatBox, established in 2012, distributes its products across all 50 states in the US, with over 120,000 retail locations, and offers a portfolio of 20 SKUs including flavors like Blue Razzberry and Orange Blast [2] - BeatBox's parent company, Future Proof, plans to launch a new RTD flavored malt drinks brand called Chillitas in the US starting March next year [3] Group 2 - AB InBev has been diversifying its business beyond beer, recently partnering with 1st Phorm to launch an energy drink brand, Phorm Energy [4] - The company has also introduced new products in the RTD segment, including the vodka ice-tea brand Skimmers and Nütrl Vodka Seltzer, expanding its presence in the spirits market since acquiring Cutwater Spirits in 2019 [5]

Core Insights - Anheuser-Busch InBev is in discussions to acquire BeatBox, a producer of boxed wine beverages, indicating a strategic move to diversify its product offerings in the beverage market [1] Company Summary - Anheuser-Busch InBev is one of the largest beer companies globally, owning well-known brands such as Budweiser, Stella Artois, and Michelob [1] - The potential acquisition of BeatBox reflects the company's interest in expanding beyond traditional beer products into the growing segment of boxed wine [1] Industry Summary - The boxed wine market has been gaining popularity, suggesting a shift in consumer preferences towards more convenient and portable wine options [1] - This acquisition could position Anheuser-Busch InBev to capitalize on the increasing demand for alternative alcoholic beverages, enhancing its competitive edge in the beverage industry [1]

Core Insights - The owner of Michelob Ultra is in discussions to acquire a boxed punch brand that has become popular among younger consumers [1] Company Summary - The acquisition talks indicate a strategic move by the company to diversify its product offerings and appeal to a younger demographic [1] Industry Summary - The boxed punch segment is gaining traction, reflecting a shift in consumer preferences towards convenient and ready-to-drink alcoholic beverages [1]

Core Viewpoint - The ongoing dispute between German retailer Edeka and Anheuser Busch InBev over price increases has led Edeka to cut orders for several AB InBev brands in its stores [1][3]. Group 1: Edeka's Actions - Edeka has confirmed a reduction in order volumes for ten AB InBev brands, although specific brands were not disclosed [1][2]. - Edeka reassured customers that sufficient stock of the mentioned brands remains available in stores [2]. - The retailer stated that the price increase demanded by AB InBev amounts to several million euros and is not justified by actual production costs, labeling it as speculation [3]. Group 2: Ongoing Negotiations - Edeka is engaged in ongoing talks with AB InBev to reach an agreement on reasonable pricing [4]. - The retailer emphasizes its commitment to consumer interests and aims to prevent unnecessary financial burdens on customers [4]. Group 3: Industry Context - Other brewers, such as Heineken, have also faced pricing disputes with the European buying alliance Everest, indicating a broader trend in the industry [4][5]. - Heineken's CEO expressed concerns about the increasing power of buying alliances in Europe and the potential for unfair practices in negotiations with local retailers [5].

Group 1: Company Overview - Anheuser-Busch InBev SA/NV (AB InBev) is showing resilience as price rebound attempts hold after a period of consolidation [1] - The uptrend in AB InBev's performance is considered valid, indicating potential for continued growth [1] Group 2: Analyst Background - The analyst has nearly two decades of experience in the logistics sector and a decade in stock investing and macroeconomic analysis, focusing on ASEAN and NYSE/NASDAQ stocks [1] - The analyst has diversified investments across various industries, including banking, telecommunications, logistics, and hotels, with a notable presence in both the Philippine and US markets [1]

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]