AB InBev Is Well Placed to Capitalize on Premiumization Tailwinds

Anheuser-Busch InBev spearheaded the brewing industry consolidation that has been unfolding during this decade. Previous acquisitions have led to InBev being the largest brewer with more than double the volume of its second-largest peer, Heineken. InBev’s monopolylike positions in several markets give the firm significant fixed cost leverage and procurement pricing power. The firm’s industry-leading margins, excess returns on invested capital, and best-in-class conversion reflect this.