Core Insights - Constellation Brands and Anheuser-Busch InBev are both major players in the alcoholic beverage industry, with Constellation focusing on higher-end products and Anheuser-Busch having a more global presence [1][2]. Constellation Brands - Constellation Brands generated $8.5 billion in sales for the fiscal year ending February 28, with 84% coming from beer products [4]. - The company is divesting lower-priced wine brands to focus on higher-margin premium wines, with the beer division showing a 39.7% operating margin compared to 19.5% for wine and spirits [5]. - Despite these strategic moves, fourth-quarter sales only increased by 1% to $2.2 billion, although operating income grew by 6% due to cost-cutting measures [6]. - The medium-term sales outlook has been lowered to an annual growth of 2% to 4%, down from 6% to 8%, indicating potential challenges ahead [7]. Anheuser-Busch InBev - Anheuser-Busch InBev reported $59.8 billion in revenue, with 88% derived from beer, and 76.5% of revenue coming from outside North America, providing greater geographic diversification [8]. - The company is less affected by tariffs due to its local production strategy, which helps mitigate cost increases [9]. - However, Anheuser-Busch has also faced sluggish growth, with a revenue increase of only 0.6% last year and a first-quarter sales growth of 1.5% [10]. Market Performance - Over the past year, Constellation Brands' share price decreased by 34.5%, while Anheuser-Busch's increased by 15.6%, contrasting with a 10.5% rise in the S&P 500 index [10]. - Despite Anheuser-Busch's advantages, both companies are currently not producing meaningful sales growth, leading to a recommendation to avoid investing in either stock at this time [11].

Core Insights - The article highlights Steven Cress's role as VP of Quantitative Strategy and Market Data at Seeking Alpha, emphasizing his contributions to the platform's quantitative stock rating system and analytical tools [1][2] - Cress is dedicated to removing emotional biases from investment decisions through a data-driven approach, utilizing sophisticated algorithms to simplify investment research [2][4] - His background includes founding CressCap Investment Research, which was acquired by Seeking Alpha in 2018, and previously running a proprietary trading desk at Morgan Stanley [3][4] Company Contributions - Seeking Alpha's Quant Rating system, created by Cress, is designed to interpret data for investors and provide insights on investment directions, saving time for users [1][2] - The Alpha Picks tool, co-managed by Cress, aims to assist long-term investors in building a high-quality portfolio [1] Professional Background - Cress has over 30 years of experience in equity research, quantitative strategies, and portfolio management, positioning him as an expert in various investment topics [4] - His previous roles include founding a quant hedge fund and leading international business development at Northern Trust, showcasing a strong background in finance and investment [3][4]

Core Insights - The article highlights Steven Cress's role as VP of Quantitative Strategy and Market Data at Seeking Alpha, emphasizing his contributions to the platform's quantitative stock rating system and analytical tools [1][2] - Cress is dedicated to removing emotional biases from investment decisions through a data-driven approach, utilizing sophisticated algorithms to simplify investment research [2][3] - With over 30 years of experience in equity research and quantitative strategies, Cress is well-equipped to address various investment topics [4] Company Overview - Seeking Alpha has integrated Cress's quantitative analysis and market data capabilities, enhancing its investment research offerings [3] - The platform features a systematic stock recommendation tool called Alpha Picks, aimed at helping long-term investors build superior portfolios [1][2] Professional Background - Prior to joining Seeking Alpha, Cress founded CressCap Investment Research, which was acquired in 2018, and also established the quant hedge fund Cress Capital Management [3] - Cress has extensive experience in proprietary trading at Morgan Stanley and international business development at Northern Trust [3]

Core Insights - AB InBev is focused on investments to drive growth and diversify its portfolio of global, international, and craft specialty premium brands [1] - The company plans to invest $300 million in its U.S. manufacturing operations in 2025 to enhance training, recruitment, and local production [2] - This investment follows a nearly $2 billion investment in U.S. facilities over the past five years, aimed at boosting the economy and sustaining jobs [3] Investment and Operations - The investments are intended to improve internal systems at U.S. manufacturing facilities, enhancing brewery efficiency and economic prosperity [4] - AB InBev reported mixed first-quarter 2025 results, with strong earnings performance but soft sales, driven by diversified operations and demand for megabrands [5] - Revenues from megabrands increased by 4.4%, particularly benefiting from the strong performance of the Corona brand [5] Digital Transformation - The company has been rapidly growing its digital platforms, with B2B digital platforms contributing approximately 72% to revenues in Q1 2025 [6] - The omnichannel ecosystem generated $275 million in revenues during the same period [6] Beyond Beer Portfolio - AB InBev's Beyond Beer portfolio saw a revenue increase of 16.6%, driven by double-digit growth in brands like Cutwater and Nütrl in the U.S. and Beats in Brazil [7] Stock Performance - Over the past three months, AB InBev's shares have increased by 25.5%, outperforming the industry growth of 18.9% [8]

Core Viewpoint - Anheuser-Busch announces a $300 million investment in U.S. manufacturing facilities, reinforcing its commitment to job creation and economic prosperity [1][5][12] Group 1: Investment and Economic Impact - The company has invested nearly $2 billion over the past five years and plans to invest an additional $300 million in 2025 [6][7] - This investment aims to create and sustain manufacturing jobs, enhance operations, and meet evolving consumer demand [7][12] Group 2: Workforce Development - Anheuser-Busch is expanding its Technical Excellence Center model, which has benefited over 1,200 employees since 2022, with a new facility in Columbus, OH [8][9] - The company is partnering with local trade schools to provide access to technical training for students and educators, thereby developing a talent pipeline for manufacturing careers [9][10] Group 3: Support for Veterans - Anheuser-Busch is leading the industry by adopting a new digital credentialing system to help veterans transition into manufacturing careers [10][11] - More than 10% of the company's workforce consists of veterans, with a nearly 100% retention rate [11]

Core Viewpoint - AB InBev reported first-quarter 2025 results with earnings per share (EPS) exceeding estimates, while revenue declined and missed expectations, indicating mixed performance driven by strong consumer demand for megabrands and a diversified market presence [1][2]. Financial Performance - Underlying EPS was 81 cents, reflecting a 7.1% year-over-year increase, driven by 10.3% EBIT growth and optimized net finance costs, surpassing the Zacks Consensus Estimate of 77 cents [2]. - Revenues totaled $13.63 billion, falling short of the Zacks Consensus Estimate of $13.85 billion and declining 6.3% year over year, although organic revenue grew by 1.5% in half of its markets [3][4]. - Revenue per hectoliter improved by 3.7% year over year, supported by revenue-management initiatives, despite a total organic volume decline of 2.2% [4]. Brand Performance - Premium and super premium beer brands showed strong performance, with the above-core beer portfolio growing by 1.8% year over year, led by Corona's 11.2% revenue increase outside Mexico [5]. - Megabrands revenues increased by 4.4%, primarily driven by the strong performance of the Corona brand [5]. Digital Transformation - AB InBev has focused on digital investments, with B2B digital platforms contributing approximately 72% to revenues in Q1 2025, and the omnichannel ecosystem generating $275 million in revenues [6][8]. Cost and Margin Analysis - Cost of sales decreased by 9.2% to $6.04 billion, while SG&A expenses rose by 5.6% year over year to $4.2 billion [9]. - Normalized EBITDA was $4.9 billion, down 2.6% year over year, but improved 7.9% on an organic basis, with the EBITDA margin expanding to 35.6% [10]. Future Outlook - For 2025, AB InBev anticipates EBITDA growth of 4-8%, with net capital expenditure projected at $3.5-$4 billion [12].

Core Insights - The article discusses the importance of identifying reasonably priced businesses with sustainable long-term competitive advantages in the investment landscape [1]. Group 1: Analyst Background - Vladimir Dimitrov, CFA, has experience as a strategy consultant focusing on brand and intangible asset valuation [1]. - He has worked with major global brands in technology, telecom, and banking sectors during his career in London [1]. - Dimitrov holds a degree from the London School of Economics [1]. Group 2: Investment Philosophy - The emphasis is on finding businesses that are not only reasonably priced but also possess sustainable competitive advantages for long-term success [1].

Core Insights - The collaboration between Jiangsu Agricultural Reclamation Group and Budweiser China has led to the successful cultivation of two high-quality barley varieties, Y131 and Y148, which meet high standards for beer brewing [3][4] - A modern indoor hop cultivation base of 2,200 square meters has been established in Lianyungang, enhancing the production capacity of hops through advanced agricultural technologies [6][7] - An environmentally friendly fertilization model has been developed, aiming to reduce chemical fertilizer usage by 20% while increasing barley yield by 5%-10% by 2025 [4][7] Group 1: Collaboration and Development - Since establishing a strategic partnership in 2016, Budweiser China and Jiangsu Agricultural Reclamation have deepened their cooperation in barley breeding and research [3] - Budweiser China has sourced a total of 230,000 tons of barley from Jiangsu Agricultural Reclamation Group to date [4] Group 2: Technological Innovations - The indoor hop cultivation project utilizes air-source heat pump systems and intelligent lighting technology to optimize key environmental parameters, significantly increasing the frequency of harvests from once a year to three to four times [6][7] - The innovative use of brewery by-products to develop organic fertilizers has replaced traditional fertilizers, contributing to carbon reduction [7] Group 3: Sustainability Initiatives - The partnership has initiated the 100+ Innovation Alliance to promote sustainable agriculture and development, leveraging various stakeholders for innovative technology applications [6][7] - The environmentally friendly fertilization model not only optimizes fertilization plans but also achieves significant breakthroughs in reducing chemical fertilizer use and carbon emissions [7]

Core Insights - Anheuser-Busch Inbev reported a revenue of $13.63 billion for Q1 2025, reflecting a year-over-year decline of 6.3% and an EPS of $0.81, up from $0.75 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $13.85 billion, resulting in a surprise of -1.61%, while the EPS exceeded expectations by 5.19% [1] Financial Performance Metrics - The company’s stock has returned +7% over the past month, compared to the Zacks S&P 500 composite's +11.3% [3] - Anheuser-Busch Inbev holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3] Volume and Revenue Breakdown - Volume in Hectoliters for Middle America was 35,081 KhL, slightly above the average estimate of 35,003.87 KhL [4] - South America reported a volume of 40,891 KhL, exceeding the estimated 38,980.93 KhL [4] - EMEA volume was 20,752 KhL, below the average estimate of 21,367.04 KhL [4] - Total worldwide volume was 136,268 KhL, slightly above the average estimate of 135,732.7 KhL [4] - North America revenue was $3.36 billion, down 6.4% year-over-year and below the estimated $3.46 billion [4] - Middle Americas revenue was $3.78 billion, a decline of 6.6% year-over-year, compared to the estimated $3.81 billion [4] - South America revenue was $2.98 billion, down 7.9% year-over-year, slightly above the estimated $2.94 billion [4] - EMEA revenue was $1.97 billion, below the estimated $2.05 billion [4] - Asia Pacific revenue was $1.45 billion, down 11.3% year-over-year, compared to the estimated $1.50 billion [4] - Global Export & Holding Companies revenue was $86 million, down 21.1% year-over-year, below the estimated $107.91 million [4]

Core Viewpoint - Analysts forecast Anheuser-Busch Inbev (BUD) to report quarterly earnings of $0.77 per share, reflecting a year-over-year increase of 2.7%, while revenues are expected to decline by 4.8% to $13.85 billion [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 1% over the past 30 days, indicating a collective reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Revenue from South America is estimated at $2.94 billion, indicating a year-over-year decline of 9% [5] - Revenue from Middle Americas is projected to reach $3.81 billion, reflecting a decrease of 6.1% from the previous year [5] - North America revenue is expected to be $3.46 billion, down 3.7% year-over-year [5] - Asia Pacific revenue is forecasted at $1.50 billion, showing an 8% decline [6] - Global Export & Holding Companies revenue is anticipated to be $107.91 million, down 1% from the year-ago quarter [6] Volume Estimates - Volume in Hectoliters for Middle America is expected to be 35,003.87 KhL, down from 35,690 KhL in the same quarter last year [7] - South America volume is projected at 38,980.93 KhL, compared to 40,347 KhL a year ago [7] - Asia Pacific volume is estimated to reach 20,031.95 KhL, down from 21,045 KhL in the previous year [8] - North America volume is expected to be 20,291.13 KhL, compared to 21,353 KhL last year [8] - Global Export and Holding Companies volume is forecasted at 76.99 KhL, up from 70 KhL in the same quarter last year [9] Stock Performance - Shares of Anheuser-Busch Inbev have increased by 8.4% in the past month, outperforming the Zacks S&P 500 composite, which saw a 0.4% increase [9] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to mirror overall market performance in the near future [9]