No-Alcohol Beer Surges 34% In AB InBev’s Growth Strategy

Anheuser-Busch InBev’s no-alcohol beer portfolio emerged as the star performer in the company’s first-quarter 2025 earnings, with revenues surging 34% globally amid broader transformation efforts. The company reported Thursday that its EBITDA increased by 7.9%, reaching the upper end of its guidance range, while underlying earnings per share rose 7.1% in dollar terms and 20.2% in constant currency, according to Yahoo Finance.

This strong financial performance, despite a 2.2% volume decline attributed to calendar effects and adverse weather, signals the brewing giant’s successful pivot toward higher-margin products and digital innovation. The market responded favorably, with AB InBev’s shares climbing following the announcement as investors recognized the company’s evolution beyond traditional beer categories.

Strategic Shift Toward “Balanced Choices”

AB InBev’s significant growth in no-alcohol beer, led by the triple-digit expansion of Corona Cero, underscores the company’s strategic transition from “occasions development” to “balanced choices” in its product portfolio. This pivot reflects the growing consumer demand for alternatives that fit health-conscious lifestyles while maintaining the social aspects of beer consumption.

CEO Michel Doukeris explained that this shift represents more than just a tactical response to market trends, but rather a fundamental reorientation of the business. “We are focusing on meeting consumer demand for balanced choices, such as non-alcoholic, low-carb, and gluten-free options,” Doukeris noted, highlighting that this segment now represents over $5 billion in value for the company. The performance of Michelob Ultra Zero in the United States further validates this approach, with executives identifying it as “the number one innovation in the category.”

Digital Transformation Creates Ecosystem Value

Beyond product innovation, AB InBev’s digital initiatives continued to deliver impressive results in the first quarter. The company’s B2B platform BEES captured $11.6 billion in gross merchandise value (GMV), representing a 10% increase compared to the prior year, while processing 32 million orders during the period, according to Investing.com.

The BEES marketplace, which connects retail partners with third-party vendors, saw particularly strong momentum with GMV increasing by 53% year-over-year to reach $645 million. On the direct-to-consumer front, AB InBev’s digital platforms generated 19.2 million orders with revenue increasing by 12% to reach $117 million, creating direct connections with consumers while gathering valuable consumption data.

U.S. Market Shows Resilience

In the crucial U.S. market, which represents over 20% of AB InBev’s global business, the company reported gaining volume market share in both the beer industry and the spirits-based ready-to-drink category. This performance is particularly noteworthy given the overall challenges facing the U.S. beer market, including adverse weather conditions and shifting consumer preferences.

The success appears driven by strategic investments in premium and super-premium segments, with Michelob Ultra and Busch Light identified as the top volume share gainers. “The U.S. is a key market, representing over 20% of our business,” Doukeris emphasized. “Our portfolio has reached an inflection point, gaining market share due to brands like Michelob Ultra and Busch Light. We are investing in the U.S. because there is significant growth potential.”

Beyond Beer and Emerging Markets Momentum

AB InBev’s “Beyond Beer” portfolio, particularly spirits-based ready-to-drink offerings like Nutrl and Cutwater, delivered volume growth in the mid-teens, outperforming the broader industry. “The intersection of hard liquor, wine, and beer offers significant incremental volume for the beer category,” Doukeris explained, highlighting the company’s commitment to adjacent growth categories.

In emerging markets, the company achieved double-digit bottom-line growth in Middle Americas, South America, Africa, and Europe. Mexico was specifically highlighted as a market with positive underlying trends, despite temporary calendar effects impacting Q1 volumes. These regions offer higher volume growth potential than mature markets, while simultaneously presenting opportunities for margin expansion through premiumization initiatives.

Outlook and Margin Expansion

EBITDA margins improved by 218 basis points during the quarter, with expansion reported in four of AB InBev’s five operating regions. CFO Fernando Tennenbaum attributed the margin gains to favorable hedging positions and improved cost visibility, while acknowledging some cost pressures expected in the second half of the year.

Despite the strong first-quarter results, AB InBev maintained its full-year EBITDA growth guidance of 4-8% for 2025, suggesting a cautious stance regarding potential headwinds. The company’s focus on premiumization, innovation in “balanced choices,” and activation of global platforms such as the NBA, FIFA, and Olympics are expected to drive growth throughout the year, positioning AB InBev for continued success in an evolving global beer market.