Dive Brief:
- Anheuser-Busch InBev is planning a $1 billion stock buyback this year, which it announced along with its fourth quarter and fiscal year earnings. Budweiser continues to be an issue for the company in the U.S.
- However, net profit rose for the quarter from $2.52 billion to $2.53 billion, and revenue beat analyst expectations of $11.86 billion, hitting $12.02 billion compared to last year's $11.71 billion.
- As a major sponsor of the World Cup, AB InBev saw a boost in sales and profits for 2014, offsetting some of the lost sales in other parts of the world.
Dive Insight:
Due to Budweiser's slowing performance in the U.S., declining by 0.3% in 2014, AB InBev upped its marketing investments, which could increase up to 9% this year, and introduced flavored brands to reinvigorate the appeal of the this 139-year-old brand. The company also pursued more acquisitions of craft beer companies in 2014, including 10 Barrel and Blue Point, plus a planned acquisition of Elysian.