By Rachel Yeo.
Anheuser-Busch InBev kicked off a $6 billion share buyback, even as it faced a challenging third quarter marked by lower-than-expected beer sales.
The brewer behind Budweiser and Stella Artois said in a Thursday filing that the buyback will be executed over the next 24 months. Organic volumes declined 3.7% during the quarter, hit by weak demand in China and unseasonably poor weather in Brazil.
Brewers have been facing persistent challenges in China as a decline in corporate hospitality and slowing consumer spending have shifted drinking habits toward at-home consumption rather than bars. The country’s anti-extravagance policies, aimed at curbing wasteful spending by officials amid economic headwinds, have further weighed on the industry.
Brazil, home to AB InBev brands such as Brahma and Skol, remains a soft spot for brewers, mirroring broader global challenges.
Consumers globally have been reining in their spending amid rising concerns on tariffs and high inflation, leading to challenging conditions for brewers across almost all markets. Peer Heineken NV earlier narrowed its profit outlook, as it saw weaker growth in Brazil and the US.