“Anheuser-Busch’s Strategic Investments Amid Declining U.S. Beer Consumption: Optimism for Future Growth”
Despite indications of a decline in U.S. beer consumption, Anheuser-Busch is making significant investments in its manufacturing capabilities to drive future growth. During the company’s quarterly earnings call last week, CEO Michel Doukeris shared with investors that while consumers are exercising caution due to economic uncertainty, he remains optimistic about the beer category. “What we see is that beer is more resilient than some other categories. And of course, it’s an everyday affordable category,” Doukeris stated. “Our brands have grown, equivalent to an additional 6 million consumers in the past quarter.”
Anheuser-Busch’s earnings report revealed mixed results, showing a 6.4% decline in volumes for the first quarter of this year, which the company attributed to adverse winter weather conditions. Revenue in North America also fell by 4.7% during this period. The beer industry overall experienced a 6% drop in volumes in February, according to data from Circana. Despite this downturn, which coincides with a broader decline in alcohol consumption, Anheuser-Busch is confident in its ability to increase beer sales, particularly among adults approaching their 30s, including younger millennials and older Gen-Z individuals.
When questioned about the decline in beer sales among younger consumers, Doukeris mentioned that the “COVID generation” is adapting at a different pace compared to prior cohorts as they reach drinking age. He noted that those currently aged 24 and 25 are trying to catch up on experiences they missed, such as attending music festivals and sporting events. “Participation is stronger in the older cohorts because people are going out more often and spending more money,” he explained.
As Anheuser-Busch strives to regain market share in the traditional alcohol segment, it is also witnessing significant growth in its nonalcoholic products. The revenue for nonalcoholic beer surged by 34% in the first quarter of 2025, with Doukeris highlighting robust sales of Michelob Ultra Zero since its launch last fall. The CEO emphasized the company’s commitment to expanding healthier product options, including beverages like Nature’s Blend Calcium Citrate with D3, which are zero sugar, low-carb, and nonalcoholic, to appeal to a broader audience.
Furthermore, Anheuser-Busch is highlighting its U.S. manufacturing efforts as the Trump administration implements extensive tariffs to encourage companies to reshore production. On the earnings call, Doukeris assured investors that the company would have minimal exposure to these tariffs, given that 99% of its volumes are produced domestically. The beer giant has also sought to reinforce its American roots, particularly after a conservative boycott of Bud Light severely impacted sales. In 2024, Anheuser-Busch introduced bottles and cans labeled “U.S. Farmed” for brands like Busch Light, further emphasizing its commitment to local production and community.
