InBev Loses Steam in U.S., Brazil
LONDON--Anheuser-Busch InBev NV lost momentum in its major markets, though price increases for its top lagers helped support profit in the first three months of 2013 for the world No. 1 brewer by sales.</br></br>InBev's total volumes, excluding acquisitions and disposals, fell 4.1% in the three months to March 31, compared with 1.8% growth in the same period last year, hurt by poor weather, higher fuel prices and tax rises, the company said. Total demand in North America fell 5%, from 1.2% growth last year--when falling unemployment among blue-collar U.S. workers helped U.S. beer sales rebound as the economy improved, growing for the first time since 2008. In North Latin America, including Brazil, volumes fell 5.8%, compared with 4.8% growth a year earlier.</br></br>The Leuven, Belgium-based maker of Budweiser generates three-quarters of its operating profit from the U.S. and Brazil. However, colder weather, higher gas prices and tax increases cut household spending and led to a drop in domestic U.S. beer shipments in the three months to Feb. 13, according to the Beer Institute, an industry body. InBev also warned in February of weaker trading in Brazil due to the earlier Carnival holiday period and the impact of price increases taken in the second half of last year, and last week rival Heineken NV warned of a slowdown in Brazil.</br></br>Inbev will extend its Americas business with the $20.1 billion purchase of Mexico's Grupo Modelo SAB in a deal that adds Corona Extra, the No. 1 imported brand in the U.S., to InBev's stable of beers in a deal expected to complete in June. It also allows InBev to push Budweiser brands south of the border, underscoring the importance of Mexico as one of several high-growth markets for InBev.</br></br>Net profit rose to $2.05 billion from $1.67 billion a year earlier, helped by hedging gains related to the Modelo deal. Revenue fell to $9.17 billion from $9.33 billion because of a weaker dollar even as InBev pushed through price increases. AB InBev's closely watched earnings before interest, taxes, amortization and depreciation fell to $3.43 billion from $3.56 billion.