Continue Reading Anheuser-Busch Jacksonville Brewery JACKSONVILLE, Fla., Jan. 6, 2026 /PRNewswire/ -- Anheuser-Busch (NYSE: BUD), a leading American manufacturer and maker of Michelob ULTRA, Busch Light, Budweiser, Bud Light, Cutwater Spirits and NÜTRL Vodka Seltzer, today announced a $30 million investment in its Jacksonville, FL Brewery and Can Plant. The investment will go toward upgrading brewing and packaging equipment to fuel increased production of Michelob ULTRA, America's #1 top-selling and fastest ...

It’s easy to see how investors in vice stocks could develop a severe case of the spins from 2025. Some rose, some fell, and seldom at the same time. Nicotine pouch-maker Zyn’s parent company, Philip Morris International, soared nearly 34%, and Budweiser-maker AB InBev ended the year up about 29%. Drink-maker Molson Coors, however, tumbled 18%. SUBSCRIBE:  Receive more of our free The Daily Upside newsletter. READ ALSO: Prediction Markets Fuel Gambling Gold Rush and Is the Great Live Sports Bet Paying Off ...

Core Viewpoint - Anheuser-Busch InBev is closing two breweries in the US and selling another to focus on investing in remaining operations and growing brands [1][2]. Group 1: Brewery Closures and Sales - AB InBev is shutting down breweries in Fairfield, California, and Merrimack, New Hampshire, while selling a brewery in Newark, New Jersey [1][2]. - Approximately 475 employees will be affected, but the company will offer them full-time roles in other US operations [2]. Group 2: Financial Performance - In the first nine months of 2025, AB InBev's US revenue declined by 1.2%, with sales to retailers falling by 3.1% and sales to wholesalers decreasing by 3% [2]. - In 2024, the company reported a 2% drop in US revenues, with retailer sales down by 5% and wholesaler sales down by 3.9% [3]. Group 3: Investments and Acquisitions - AB InBev has announced investments in other US breweries, including projects in Georgia and New York [3]. - The company is acquiring an 85% stake in BeatBox for up to $490 million, expanding its portfolio in the hard-punch beverage market [3][4].

Group 1: Broadcom and AI Trade - Broadcom is facing margin concerns after a strong Q4 performance, with expectations of a 100 basis points sequential decline in Q1 gross margin due to increased AI revenue share [4] - The company has a significant backlog of $73 billion in AI product orders scheduled over the next six quarters, but this includes lower-margin system sales [5] - Broadcom's market capitalization has surpassed that of Meta and Tesla, highlighting its importance in the AI sector following a 78% year-to-date rally [3] Group 2: Cannabis Industry - Cannabis producer stocks are rising on reports that President Trump may advocate for reclassifying marijuana from Schedule I to Schedule III, which would recognize its medical applications [6][7] - A call was held involving Trump and several cannabis industry executives to discuss the reclassification proposal, although no final decision has been made [7] Group 3: Anheuser-Busch InBev - Anheuser-Busch InBev plans to close its Merrimack, N.H. brewery by early 2026 as part of a modernization effort, aligning with closures at other sites [8][9] - The company holds a leading position in the U.S. beer market with approximately 33% market share, with Michelob Ultra being the top-selling beer by volume [10]

Group 1: Broadcom and AI Trade - Broadcom is facing margin concerns after a strong Q4 performance, with expectations of a 100 basis points sequential decline in Q1 gross margin due to increased AI revenue share [4] - The company has a significant backlog of $73 billion in AI product orders scheduled over the next six quarters, but this includes lower-margin system sales [5] - Broadcom's market capitalization has surpassed that of Meta and Tesla, highlighting its importance in the AI sector [3] Group 2: Cannabis Industry - Cannabis producer stocks are rising on reports that President Trump may advocate for reclassifying marijuana from Schedule I to Schedule III, which would recognize its medical applications [6][7] - A call was held involving Trump and several cannabis industry executives to discuss the reclassification proposal, although no final decision has been made [7] Group 3: Anheuser-Busch InBev - Anheuser-Busch InBev plans to close its Merrimack, N.H. brewery by early 2026 as part of a modernization effort, aligning with closures at other sites [8][9] - The company holds a leading position in the U.S. beer market with approximately 33% market share, with Michelob Ultra being the top-selling beer by volume [10]

Core Insights - Anheuser-Busch is selling its Newark, New Jersey brewery and closing two others in California and New Hampshire as part of a strategy to optimize production [1] - The company plans to shift production from these facilities to other U.S. operations, allowing for increased investment in remaining facilities and brands [2] Production Strategy - The Newark brewery, operational since 1951, will be sold to the Goodman Group in 2026, while the California and New Hampshire facilities will close in early 2026 [1] - Anheuser-Busch has invested nearly $2 billion in modernizing its U.S. manufacturing operations over the past five years [2] Employee Impact - A total of 475 full-time employees from the affected facilities will be offered relocation to other U.S. operations, with stipends and training provided [6][7] - Employees who do not accept the transfer will receive severance packages and additional resources [7] Overall Operations - Anheuser-Busch operates over 100 facilities across the United States [8] - The company emphasizes that these changes are not indicative of product performance and will not affect product availability [11]

Group 1: Partnership Announcement - The International Cricket Council (ICC) has announced that AB InBev will become the Official Beer Partner for all major ICC tournaments starting in 2026 [1][3] - The partnership will focus on Budweiser 0.0, a no-alcohol beer, particularly in India, while other AB InBev brands will be activated in Europe and Africa [1][2] Group 2: Strategic Importance - Cricket is a globally popular sport with over two billion fans, making it a significant platform for AB InBev to engage with consumers [3] - The partnership aims to enhance fan experiences and create memorable moments through innovative engagement strategies [3] Group 3: Event Involvement - The partnership includes all major ICC men's and women's events through 2027, such as the ICC Men's T20 World Cup 2026, ICC Women's T20 World Cup 2026, and ICC Men's Cricket World Cup 2027 [3] Group 4: Company Overview - AB InBev is a publicly traded company based in Leuven, Belgium, with a diverse portfolio of over 500 beer brands, including global names like Budweiser, Corona, and Stella Artois [5] - For 2024, AB InBev's reported revenue was 59.8 billion USD, indicating its strong market presence and financial performance [5]

Core Insights - Anheuser-Busch InBev is adapting to a significant shift in the alcohol industry, with a growing preference for ready-to-drink cocktails among consumers, leading to the acquisition of an 85% stake in BeatBox Beverages for approximately $490 million [3][4] - This acquisition is seen as a proactive strategy to capture future growth rather than a defensive measure, potentially serving as a catalyst for Anheuser-Busch's stock, which is currently trading around $60.48 [4] - BeatBox Beverages is a proven leader in its category, generating over $340 million in retail sales in the past year, with a sales volume increase of 90% in 2024 and projected growth of 34% in 2025 [5][6] Company Strategy - By acquiring BeatBox, Anheuser-Busch is securing a pre-built growth engine that aligns with the preferences of younger consumers, allowing for immediate access to a fast-growing product line [6] - The acquisition is part of a broader strategy to diversify revenue streams and mitigate the volatility associated with the traditional beer market, as evidenced by a 3.7% decline in global beer volumes in the third quarter of 2025 [7][8] - Anheuser-Busch's Beyond Beer portfolio is contributing to substantial revenue growth, and the company is committed to enhancing shareholder value through stock buybacks and consistent dividends [7]

Core Thesis - Ambev S.A. is perceived as undervalued, trading at approximately a 23% discount to its fair value, suggesting a potential annual alpha of 9% if the valuation gap closes within three years [2] Valuation Metrics - As of December 1st, Ambev's share price was $2.57, with trailing and forward P/E ratios of 13.45 and 13.26 respectively [1] - The stock is trading at 14–15× forward P/E compared to its historical average of 17–18×, indicating a potential re-rating towards $2.9/share as margins normalize [4] Financial Performance - Ambev has experienced approximately 12% growth in BRL in 2024 and a long-term CAGR of 10% locally, although its USD performance has faced translation losses with 2–4% declines in EPS and FCF over the past decade [2] - Easing input costs, pricing discipline, and premiumization through brands like Budweiser, Stella, and Corona are contributing to margin recovery [3] Market Conditions - Stabilizing volumes and operating leverage from Brazil's scale, along with strong performance in Latin America South, could enhance profitability [3] - Currency stability and falling interest rates, combined with Ambev's net cash position, support cash generation and a projected 5–6% dividend yield [3] Competitive Landscape - Risks include renewed cost inflation, FX headwinds from BRL depreciation, macroeconomic uncertainty in Brazil and Argentina, competitive pressures from Heineken and local brewers, and limited long-term volume growth in a mature beer market [4] Investor Sentiment - Despite strong fundamentals, there is caution regarding execution missteps or reduced dividends that could negatively impact sentiment [5] - Ambev is not among the 30 most popular stocks among hedge funds, with 23 hedge fund portfolios holding ABEV at the end of Q2, up from 21 in the previous quarter [7]

Summary of Key Points from the Beer Industry Expert Call Industry Overview - **Industry**: Beer Industry in China - **Expert**: A beer distributor based in Hubei Province with 16 years of experience, focusing on brands like CR Beer (Snow and Heineken), Tsingtao, and Budweiser Core Insights 1. **Catering Recovery Trends**: - Post-Golden Week, on-premise beer consumption has declined due to reduced traffic and lower promotions, particularly for Heineken since October 15th - Strong consumption and beer mix upgrades were noted during the Golden Week, driven by tourist inflow, especially for Heineken and Snow Draft [1][1][1] 2. **Brewers' Growth Targets**: - CR Beer aims for flat sales volume in 2026 compared to 2025, with a 20% growth target for Heineken - Snow Draft has no specific growth targets due to minimal channel investment [1][1][1] 3. **Channel Dynamics**: - Catering remains the largest channel for the expert's company, while insta-shopping accounts for approximately 5-10% of total channel mix, potentially reaching 30% in non-peak seasons - On-trade beer consumption has significantly decreased post-June 2025 due to food delivery services impacting dine-in activities [1][1][1] 4. **Competition Analysis**: - Global Trekker from CR Beer holds a 40-50% market share in the Rmb6-8 pricing range, primarily in higher-tier areas - Local brands like Jinlongquan are disrupting penetration into lower-tier cities with competitive pricing [1][1][1] 5. **Pricing Strategies**: - Bud Draft is positioned at Rmb10 in catering channels to compete with Heineken, while Bud Classic is priced above Rmb12 - The expert is negotiating for increased channel investment from Budweiser to support aggressive growth targets for 2026 [1][1][1] 6. **Emerging Channels**: - Meituan's Waima platform has the highest pricing level among new channels, with a significant share of premium products - The expert noted that Waima has rapidly developed since entering the Hubei market in October 2024, with over 270 SKUs and around 25-30% private-label products [1][1][1] 7. **Profitability Insights**: - Beer brands typically invest 30-40% in channel promotions on Waima, which leads to rapid volume growth - Distributors shipping to Waima can achieve gross profit margins of over 20% with self-owned logistics [1][1][1] Additional Important Points - **Market Dynamics**: The expert highlighted the impact of anti-graft policies on on-trade consumption and the competitive landscape in Hubei - **Brand Performance**: Tsingtao is recovering in canned beer segments, while Yanjing U8 has seen healthy sell-through in county-level markets due to effective local distributor collaborations [1][1][1] This summary encapsulates the key insights and dynamics within the beer industry as discussed during the expert call, providing a comprehensive overview of current trends, challenges, and opportunities.