Brewers take losses by Paul F. Vang
Reprinted with the permission of Paul F. Vang (which appeared in the Montana Tavern Times - September 2020 issue)
The majority brewers are taking hits, as the pandemic continues to ravage the economy.
Anheuser-Busch InBev, the world’s biggest brewer, had a 17.7 percent decline in volume sales in the second quarter of 2020, even though that was somewhat better than feared, according to a thedrinksbusiness.com report. The losses are on a global scale, due in part to South Africa banning domestic alcohol sales.
Molson Coors took a 12 percent cut in sales volumes in the second quarter of 2020, according to fool.com, an online service of The Motley Fool financial service. The slump was most pronounced in Europe where sales were down 21 percent. On-premise sales essentially dropped to zero in the period, leaving supermarkets and other retailers the only outlet for production.
The future isn’t necessarily rosy. In a press release, the company said, “The market remains too unpredictable to provide an updated detailed outlook at this time.”