Inflation Hits Anheuser-Busch, CFO Says Price Increase On Cards

Anheuser-Busch InBev SA/NV BUD mulls raising prices for some of its beverages in an effort to manage inflation.
As per Wall Street Journal, the company said that despite regular updates to its pricing, it is lagging on cost increases in markets, including the U.S. and Brazil.
“Overall, I feel inflation is slightly higher than our view,” AB InBev CFO Fernando Tennenbaum said.
In the U.S., the consumer price index (CPI) was at 8% in Q1. Still, AB InBev’s total net beer revenue per hectoliter (100 liters) increased 6.2%.
In Brazil, CPI rose 10.7% in Q1 compared to an 8.5% increase in total net revenue per hectoliter, the company said.
Mr. Tennenbaum declined to provide specifics on AB InBev’s pricing strategy. “Pricing is only one of the levers we have to manage cost inflation,” a spokeswoman said.
The company uses zero-based budgeting to keep costs under control. The managers will have to plan every budget from scratch, which many consumer-facing businesses use. “It’s a mindset,” Mr. Tennenbaum said.
Photo via Wikimedia Commons

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