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AB InBev Production Volume Breakdown By Region

AB InBev’s Stella Artois Brewery. Source: Flickr

Anheuser-Busch InBev or AB InBev is a publicly-traded company specializing in beverages, beers in particular.

Its main listing is in Europe, Leuven, Belgium (Euronext: ABI), with secondary listings on the Mexico (MEXBOL: ANB) and South Africa (JSE: ANH) stock exchanges.

Besides, AB InBev also has American Depository Receipts on the New York Stock Exchange (NYSE: BUD).

AB InBev is one of the largest beer brewers in the world, with operations spanning 5 regions: North America, Middle Americas, South America, EMEA and Asia Pacific.

This article covers AB InBev’s all beverages volume production, including beer, alcoholic beverages, soft drinks and energy drinks (non-alcoholic).

Additionally, this article also breaks down AB InBev’s volume production into regional figures.

Other than volume production figures, we also get into AB InBev’s production growth rates on a worldwide as well as regional basis.

Let’s take a look!

AB InBev Worldwide Production Volumes

AB InBev's Worldwide Production Volumes By Year

AB InBev’s Worldwide Production Volumes By Year

* Production volume data do not come from restated results triggered by accounting rules changes and sales of subsidiaries.
* 2019 production volume data in the chart is slightly higher than the annual figure reported in AB InBev’s annual report due to the use of restated data in the company’s annual report.

In terms of total production volumes, AB InBev produced a total of 530.6 million hectoliters of beverages in FY2020, representing an annual decline of about 6%.

In FY2019, AB InBev reported a worldwide production volume of 565 million hectoliters compared to a slightly higher volume at 567 million hectoliters recorded in FY2018.

Between 2018 and 2020, AB InBev’s total beverage volumes have been on a decline, with FY2020 being the lowest among the 3 years.

Year to date, AB InBev’s production volumes reached 135.5 million hectoliters, a much higher figure compared to the same quarter a year ago.

AB InBev Production Volumes By Region

AB InBev's Production Volumes By Regions

AB InBev’s Production Volumes By Regions

* Production volumes by region data do not come from restated results triggered by accounting rules changes and sales of subsidiaries.
* North America region includes the U.S. and Canada.
* Middle Americas region includes Mexico, Colombia, Peru, Ecuador, Honduras, El Salvador, Dominican Republic, Panama, Guatemala, Barbados, Puerto Rico, and Caribbean Islands.
* South America region includes Argentina, Bolivia, Brazil, Chile, Paraguay and Uruguay.
* EMEA region includes Europe, the Middle East, and Africa.
* Asia Pacific region includes China, India, South Korea and Vietnam.
* AB InBev sold its Australia subsidiary in 2019 which affects only the Asia Pacific region.

From the chart, AB InBev produced the biggest beverage volumes in South America, at over 140 million hectoliters per year.

This is followed by the Middle Americas region in which AB InBev produced the 2nd biggest beverage volume, at over 120 million hectoliters per year between FY2018 and FY2020.

AB InBev’s North America operation has been the company’s 3rd largest customer after South America and Middle Americas regions.

Of all the regions, AB InBev’s South America operation has been the only region seeing an increase in production volumes for the period between FY2018 and FY2020.

Other regions such as AB InBev’s North America, Middle Americas, EMEA and Asia Pacific have all been declining in terms of total beverage production volumes between FY2018 and FY2020.

AB InBev’s Asia Pacific operation saw its production volumes declined the most, from more than 100 million hectoliters recorded in FY2018 to only 80 million hectoliters recorded in FY2020.

AB InBev Production Volumes Annual Growth Rates

AB InBev's Production Volumes Growth Rates

AB InBev’s Production Volumes Growth Rates

* Production volumes growth rates are computed by the author using AB InBev’s production volumes by region data obtained from the company’s financial reports.

On a worldwide basis, AB InBev’s total production volume remained flat in FY2019 but declined by 6% year over year in FY2020.

On the bright side, AB InBev’s South America region reported positive yearly growth rates of 3% and 3.3% in FY2019 and FY2020, respectively.

AB InBev experienced the worst production volume decline in the Asia Pacific region in FY2019 and FY2020, at 7% and 16%, respectively.

AB InBev Worldwide Production Volumes (Quarterly)

AB InBev's Worldwide Production Volumes (Quarterly)

AB InBev’s Worldwide Production Volumes (Quarterly)

* Worldwide production volumes by quarter data do not come from restated results triggered by accounting rules changes and sales of subsidiaries.

On a quarterly basis, AB InBev’s worldwide production volumes have remained flat at about 140 million hectoliters on average between FY2018 and FY2020.

However, AB InBev experienced a significant drop in total production volumes in 1Q20 and 2Q20, with both quarters plunging to only 120 million hectoliters.

In 1Q 2021, AB InBev’s total production volumes rose significantly higher year over year to 135.5 million hectoliters compared to only 120 million hectoliters reported in the same quarter a year ago.

AB InBev Worldwide Production Volumes (TTM)

AB InBev's Worldwide Production Volumes (TTM)

AB InBev’s Worldwide Production Volumes (TTM)

* TTM data consists of the sum of the quarterly data on a trailing 12-month or 4-quarter basis.
* TTM data comes from the author’s own calculation using AB InBev’s quarterly production volume data.

The quarterly plot may not clearly display the trend of AB InBev’s production volume on a long-term basis.

To see the long-term trend, the TTM or trailing 12-month plot above clearly shows that AB InBev’s worldwide production volumes had significantly declined in the 1st half of FY2020, with 2020 Q2 reporting the lowest TTM figure at slightly above 520 million hectoliters.

However, AB InBev’s worldwide production volumes started to pick up in the 2nd half of FY2020.

Going forward, AB InBev’s total production volumes continued to rise in 2021.

As of Q1 2021, AB InBev’s total production volumes reached a TTM figure of 546 million hectoliters.

While AB InBev’s total production volumes have been rising and reached a new high in 2021 on a TTM basis, the 1Q 2021 result was still very far off from its historical highs reported in prior years.

AB InBev North America Production Volumes (Quarterly)

AB InBev's North America Production Volumes (Quarterly)

AB InBev’s North America Production Volumes (Quarterly)

* North America production volumes by quarter data do not come from restated results triggered by accounting rules changes and sales of subsidiaries.
* North America region includes the U.S. and Canada.

AB InBev in North America experienced the same trend where its production volumes have remained flat over the past 3 years.

Between 2018 and 2020, AB InBev produced an average of 27 million hectoliters of beverages on a quarterly basis.

As of 1Q 2021, AB InBev’s production volume in North America reached 25 million hectoliters, which was slightly above the 24 million hectoliters reported a year ago.

AB InBev North America Production Volumes (TTM)

AB InBev's North America Production Volumes (TTM)

AB InBev’s North America Production Volumes (TTM)

* TTM data consists of the sum of the quarterly data on a trailing 12-month or 4-quarter basis.
* TTM data comes from the author’s own calculation using AB InBev’s quarterly production volume data.
* North America region includes the U.S. and Canada.

Similarly, the TTM plot above is created to smooth out the bumps in the quarterly plot and to better see the trend of AB InBev’s North America beverage production volumes.

On a TTM basis, AB InBev’s production volumes in North America have been trending down since 4Q18 and reached a record low at 106.5 million hector liters in 2Q20.

In subsequent quarters, AB InBev’s production volumes in North America have moved slightly higher and reached 107.5 million hectoliters as of 2021 1Q.

At this figure, AB InBev’s North America production volumes were still way below their historical highs reported in prior quarters.

AB InBev Middle Americas Production Volumes (Quarterly)

AB InBev's Middle Americas Production Volumes (Quarterly)

AB InBev’s Middle Americas Production Volumes (Quarterly)

* Middle Americas production volumes by quarter data do not come from restated results triggered by accounting rules changes and sales of subsidiaries.
* Middle Americas region includes Mexico, Colombia, Peru, Ecuador, Honduras, El Salvador, Dominican Republic, Panama, Guatemala, Barbados, Puerto Rico, and Caribbean Islands.

In Middle Americas, AB InBev’s operation seems to be affected the most in 2020, with 2Q 2020 being the worst quarter when production volumes totaled only 22 million hectoliters.

However, AB InBev’s production volumes in Middle Americas recovered in subsequent quarters in 2020.

As of Q1 2021, AB InBev produced a total of 33 million hectoliters of beverages in Middle Americas, representing a year on year increase of 10%.

AB InBev Middle Americas Production Volumes (TTM)

AB InBev's Middle Americas Production Volumes (TTM)

AB InBev’s Middle Americas Production Volumes (TTM)

* TTM data consists of the sum of the quarterly data on a trailing 12-month or 4-quarter basis.
* TTM data comes from the author’s own calculation using AB InBev’s quarterly production volume data.
* Middle Americas region includes Mexico, Colombia, Peru, Ecuador, Honduras, El Salvador, Dominican Republic, Panama, Guatemala, Barbados, Puerto Rico, and Caribbean Islands.

From a TTM perspective, 2020 was the worst year for AB InBev in Middle Americas.

AB InBev’s production volumes dropped drastically in 2Q 2020 to only 120 million hectoliters compared to 130 million hectoliters reported a year ago.

As of 2021 1Q, AB InBev’s production volumes in Middle Americas recovered significantly to 124 million hectoliters but still way off from the 133 million hectoliters reported in the same quarter a year ago.

AB InBev South America Production Volumes (Quarterly)

AB InBev's South America Production Volumes (Quarterly)

AB InBev’s South America Production Volumes (Quarterly)

* South Americas production volumes by quarter data do not come from restated results triggered by accounting rules changes and sales of subsidiaries.
* South America region includes Argentina, Bolivia, Brazil, Chile, Paraguay and Uruguay.

On a quarterly basis, AB InBev seems to be doing reasonably well in South America.

AB InBev’s production volumes rose significantly higher in all quarters in 2020 in South America despite being negatively impacted by the COVID-19 pandemic.

As of 1Q 2021, AB InBev’s production volumes in South America rose more than 10% to 38.5 million hectoliters compared to the same quarter a year ago.

AB InBev South America Production Volumes (TTM)

AB InBev's South America Production Volumes (TTM)

AB InBev’s South America Production Volumes (TTM)

* TTM data consists of the sum of the quarterly data on a trailing 12-month or 4-quarter basis.
* TTM data comes from the author’s own calculation using AB InBev’s quarterly production volume data.
* South America region includes Argentina, Bolivia, Brazil, Chile, Paraguay and Uruguay.

The TTM plot clearly shows the growth in AB InBev’s production volumes in South America in 2020.

On a TTM basis, AB InBev experienced only a 2% decline in beverage production volumes in 2Q 2020 at 135.6 million hectoliters compared to 138 million hectoliters reported a year ago.

Since then, AB InBev’s production volumes in South America continued to rise in subsequent quarters and reached a record high at 148 million hectoliters in 2021 Q1.

AB InBev EMEA Production Volumes (Quarterly)

AB InBev's EMEA Production Volumes (Quarterly)

AB InBev’s EMEA Production Volumes (Quarterly)

* EMEA production volumes by quarter data do not come from restated results triggered by accounting rules changes and sales of subsidiaries.
* EMEA region includes Europe, the Middle East, and Africa.

AB InBev has not been doing well in Europe, Middle East and Africa.

On a quarterly basis, AB InBev’s production volumes in EMEA have remained flat at about 20.5 million hectoliters in the past 3 years.

AB InBev had the worst production results throughout 2020, with all quarters going lower on a year-on-year basis.

In 2021 1Q, AB InBev reported a production volume of only 17.7 million hectoliters, a 2% drop compared to the same quarter a year ago.

AB InBev EMEA Production Volumes (TTM)

AB InBev's EMEA Production Volumes (TTM)

AB InBev’s EMEA Production Volumes (TTM)

* TTM data consists of the sum of the quarterly data on a trailing 12-month or 4-quarter basis.
* TTM data comes from the author’s own calculation using AB InBev’s quarterly production volume data.
* EMEA region includes Europe, the Middle East, and Africa.

The TTM plot above reinforces AB InBev’s production decline seen in 2020.

As seen from the chart, AB InBev’s production volumes started to drop dramatically in 2Q 2020 to only 79 million hectoliters, a year over year decline of 7%.

While AB InBev’s production volumes have recovered in other regions in the 2nd half of 2020, it’s a different story for the EMEA region.

AB InBev’s production continued to slide in subsequent quarters and reached a new low at 75.8 million hectoliters as of 1Q 2021 on a TTM basis.

In short, AB InBev’s operation in Europe, Middle East and Africa continued to be adversely impacted by the pandemic with no recovery in sight yet.

AB InBev Asia Pacific Production Volumes (Quarterly)

AB InBev's Asia Pacific Production Volumes (Quarterly)

AB InBev’s Asia Pacific Production Volumes (Quarterly)

* Asia Pacific production volumes by quarter data do not come from restated results triggered by accounting rules changes and sales of subsidiaries.
* Asia Pacific region includes China, India, South Korea and Vietnam.

AB InBev’s beverage production in the Asia Pacific region has been quite dramatic.

For your information, AB InBev has divested its Australia operation in 2019 and this may have led to the dramatic volume fluctuation in the Asia Pacific region.

Aside from the divestment, AB InBev’s operation was also severely impacted by the pandemic in early 2020, especially in China.

On average, AB InBev produced about 23 million hectoliters of beverages per quarter in the Asia Pacific for the period from FY2018 to FY2021.

In 2021 Q1, AB InBev’s production volumes surged significantly to 20.9 million hectoliters, representing a rise of more than 60% year over year.

AB InBev Asia Pacific Production Volumes (TTM)

AB InBev's Asia Pacific Production Volumes (TTM)

AB InBev’s Asia Pacific Production Volumes (TTM)

* TTM data consists of the sum of the quarterly data on a trailing 12-month or 4-quarter basis.
* TTM data comes from the author’s own calculation using AB InBev’s quarterly production volume data.
* Asia Pacific region includes China, India, South Korea and Vietnam.

From a TTM perspective, AB InBev’s operation in the Asia Pacific has been negatively impacted as seen from the continuous downtrend since 2018.

AB InBev’s Asia Pacific production volumes reached the lowest at 81.6 million hectoliters reported in 4Q 2020.

As of 2021 Q1, AB InBev’s beverage production recovered and reached 89.7 million hectoliters, representing year-on-year growth of 4%.

Conclusion

In short, AB InBev’s South America operation has been the only region where its operation has not been negatively impacted.

In fact, AB InBev is seeing a rise in production volumes in South America.

AB InBev’s South America production volumes reached more than 140 million hectoliters by the end of FY2020.

In contrast, AB InBev’s EMEA and the Asia Pacific regions have been severely impacted, with beverage production declining year over year between FY2018 and FY2020.

2020 represents the worst year for AB InBev’s EMEA and Asia Pacific regions when the production volumes reached new lows.

References and Credits

1. Financial figures in all charts above were obtained and referenced from AB InBev’s annual and quarterly statements available in AB InBev Earnings Releases.

2. Featured image was used under Creative Common Licenses and obtained from toyohara and VISITFLANDERS.

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