GERMANY – Anheuser-Busch InBev, the world’s largest brewer, is making significant strides in the non-alcoholic beverage market with the construction of new de-alcoholisation technology in the UK.
The move reflects the company’s commitment to capitalizing on the growing demand for alcohol-free options, as consumers increasingly prioritize health and wellness.
Jason Warner, CEO of AB InBev’s Europe arm, emphasized the company’s investment in de-alcoholization technology, stating, “We’re getting the necessary scale that we’re going to need.”
AB InBev’s efforts to expand its alcohol-free portfolio include investments in brewing technology, with plans to invest €31 million (US$33.2 million) in alcohol-free brewing technology at several of its breweries in Belgium.
The company sees a unique opportunity in the non-alcoholic beverage segment, particularly in what Warner describes as “adult refreshment.”
Warner highlighted the appeal of AB InBev’s flagship 0.0% brand, Corona Cero, noting its rapid growth and popularity among consumers seeking simple, natural ingredients and refreshing taste without alcohol.
Warner revealed AB InBev’s ambitious plans to expand Corona Cero to new markets, with the brand already launched in 11 markets in 2022 and set to expand to 23 markets by the end of 2024, including a new entry into Italy.
The company’s global sponsorship deal for Corona Cero to be the beer sponsor of the Olympic Games through 2028 further underscores its commitment to promoting non-alcoholic offerings on a global scale.
AB InBev’s portfolio predominantly consists of 0.0% extensions of its alcoholic beer brands, including Budweiser, Franziskaner, Stella Artois, Hoegaarden, and Corona.
Andres Peñate, global vice president of corporate affairs at AB InBev, explained the rationale behind alcohol-free extensions, stating, “It’s actually easier to amplify and speed up the introduction of these new products… it signals to the consumer the type of liquid [they] are going to get, so it has one less friction point for the adoption.”
The company’s strategic focus on non-alcoholic beverages has yielded significant growth, with a 60 percent increase in the number of no-and-low alcohol beer products in its portfolio and volumes growing by more than 23 percent since 2019.
Meanwhile, AB InBev reported a 7.8 percent increase in revenue during the full year 2023, driven by strong performance from its flagship global brands, including Budweiser, Corona, Stella Artois, and Michelob Ultra, which demonstrated resilience and marked a collective 24.6 percent year-over-year growth outside their home markets.
In FY23, total volumes declined by 1.7 percent, with own-beer volumes down by 2.3 percent and non-beer volumes up by 2.1 percent.
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