The fortunes of Budweiser APAC may be finally on the up after a tumultuous year.
Following an abortive attempt to raise 10 billion dollars by listing on Hong Kong’s stock exchange in July 2019, AB InBev’s Asia-Pacific unit had a successful IPO (on a significantly lower valuation) a few months later.
The brutal economic impact of COVID-19 came as another blow to the brewer’s operations, with a significant drop in volumes starting with China’s lockdowns in January.
Regionally, the first half of 2020 saw a 23.5% decline in revenue and a 22.2% decline in volumes.
However, Budweiser APAC’s 2020 H1 financial update was not all bad news.
In China, the beer conglomerate registered their highest monthly sales volume ever in June 2020.
Mimicking approaches used by firms in other categories, the brewer deployed a more aggressive digital strategy – notably by expanding investments in eCommerce capabilities.
Reflecting the emphasis placed on digital, the financial update proudly highlighted their success on the eCommerce 618 Shopping Festival – the largest in China following the ‘first wave’ of COVID-19.
During 618 on Tmall and JD.com, Budweiser was the top beer brand nationally in terms of sales while other brands in the brewer’s stable (Corona, Hoegaarden and Harbin) were also among the top 10.
Beyond the specific sales moment, Budweiser claims that their e-commerce market share in China is now more than double that of the next brewer in 2020.
It wasn’t all sales techniques, either. In South Korea, the brand invested in product innovation and craft beer brands: locally launching Hoegaarden seasonal variants (e.g., green grape flavoured beer), Hand & Malt SangSang Pale Ale (a pale ale beer made with local honey), and Goose Island Duck Duck Goose IPA.
COVID-19 aside, Budweiser APAC’s future is looking relatively bright. One analyst writing in the Australian Financial Review argues the premiumisation of the Chinese beer market, in addition to the brewer’s portfolio of 50+ brands and brewing and distribution infrastructure, bodes well for the future.
