Stella Artois brewer InBev today reported a further drop in UK sales volumes, but said it had increased market share as the wider industry suffered sharper falls.
Stella Artois brewer InBev today reported a further drop in UK sales volumes, but said it had increased market share as the wider industry suffered sharper falls.
Belgium-based InBev, which is hoping to buy Budweiser brewer Anheuser-Busch in the US, posted a 4.1% slide in second quarter UK sales volumes of its own beer brands.
The UK contributed to a 9% fall in second quarter earnings for its western European operation, at 195 million euros (£156m), and InBev said it was "far from satisfied" with the group's performance in the year to date.
InBev, which also makes Becks and Staropramen, said margins across the group were still being hit by soaring commodity costs.
It has sought to combat the input cost pressures, largely by cutting overheads where possible, which have been reduced by 11.3%.
Underlying group earnings grew 1.3% in the first six months of the year to 1.68 billion euros (£1.34bn), as worldwide sales volumes rose 0.2%.
First half own beer sales volumes in the UK were down 0.7%, it added.
Carlos Brito, chief executive of InBev, said: "Our overall pricing is healthy, but rising costs continue to put pressure on our margins."
He added that the planned takeover of Anheuser-Busch was not distracting the group, which "remains focused on driving our organic business".
InBev announced the proposed takeover of the Budweiser firm, worth 52 billion US dollars (£27.8bn), in July after the Anheuser finally agreed to the deal following a long courtship.
Anheuser had been less than supportive of InBev's initial approaches.
But the brewing industry is being forced to consolidate at a fast pace to help achieve greater economies of scale as demand wanes in mature markets and as costs rise.
Rob Mann, analyst at Collins Stewart, said it was "not a good year to be a brewer" amid the challenging trading conditions.
"There are many advantages to be had through the transaction with Anheuser-Busch, but in the near-term there is much to cause concern," he said.
Foster's, John Smith's and Kronenbourg 1664 brewer Scottish & Newcastle was bought by Heineken and Carlsberg in a £7.8 billion takeover deal, which completed in April.
InBev owns beer brands in 20 markets worldwide, including Brahma, Hoegaarden and Leffe.
Anheuser has more than 100 brands and 12 US breweries. Its international arm operates 15 breweries - 14 in China and one in the UK, at Mortlake.
