Carlsberg and AB InBev Report Lower Sales Amid Weak Demand

Two of the world’s largest brewers, Anheuser-Busch InBev and Carlsberg, have each reported a decline in third quarter sales volumes, reflecting softening consumer demand for beer. AB InBev, known for brands such as Corona and Stella Artois, stated that organic volumes dropped by 3.7 per cent, falling short of market expectations. The company attributed this result to weak demand in China, where volumes slumped 11.4 per cent, and Brazil, which saw a 7.9 per cent fall, citing unseasonable weather as a significant factor.

Carlsberg also posted a 3 per cent decline in organic volumes during its third quarter. The Danish brewer pointed to the heavy monsoon in India and subdued consumer sentiment, particularly in Kazakhstan, as contributing factors. This downturn offset gains in its premium beers, alcohol-free offerings, and soft drinks in western Europe. Jacob Aarup-Andersen, Carlsberg’s chief executive, highlighted robust performance from Britvic, the former FTSE 250 soft drinks group acquired last year for £3.3 billion, and said its integration has been progressing smoothly. In response to soft market conditions, Carlsberg has taken decisive steps to adapt its cost base and sustain earnings growth.

Despite the slip in volumes, Carlsberg reported an 18 per cent rise in total sales, reaching DKr24.1 billion (£2.8 billion), aligning with analyst projections. The group maintained its annual forecast for organic operating profit growth between 3 and 5 per cent.

The share price of Carlsberg closed down DKr12.60, or 1.6 per cent, at DK768, while AB InBev shares were down €1.12, or 2.1 per cent, at €51.86 following the announcement of a $6 billion share buyback to occur over two years. While some analysts had hoped for a more aggressive buyback schedule, the company has focused on debt reduction to underpin shareholder value.

Brewers continue to face mounting challenges, from the impact of President Trump’s tariff regime to ongoing macroeconomic volatility. Recent changes in Chinese consumer habits, subdued corporate hospitality, and slowing spending have also weighed on results across the sector. Heineken recently warned of a similar modest decline in volumes for 2025 and forecasted organic operating profit at the lower end of its previous target range amid growing market uncertainty.

Long-term structural changes, including reduced alcohol consumption, the influence of weight loss drugs, and competition from new market entrants, are reshaping the landscape for global brewers. Companies remain under pressure to innovate and steer through persistent market headwinds.