AB InBev CEO Michel Doukeris and Yahoo Finance Executive Editor Brian Sozzi explore how the rapid rise of ready-to-drink beverages is shifting Gen Z alcohol habits.
Where are you at with expanding into your like your beyond beer portfolio?
So we call Beyond Beer this ready to drink beverage that can be a ready to drink cocktail or a seltzer, uh, or a wine punch, for example, bit box.
And I love their packaging.
It's beautiful, yeah.
It's a great packaging.
And we are at the beginning of that. We started back in 2017 to reorganize this division of our portfolio. Today, we are the fastest growing company in this space, but we're still very small. We have brands such as Cutwater, Neutral, now beatbox that are all growing double digits and they are very incremental to our portfolio because they tap into consumers that drink less beer or more other beverages and they bring flavor to our portfolio that goes way beyond the traditional beer flavors. So it's incremental, is growing very fast. We are the leading company now in the US and we have several propositions globally that fit very well for the modern consumer.
Are there more opportunities to add and build in that portfolio, you think?
Yeah, because we have a low share on this space. We are the fastest growing, but still the head room is very big.
I uh I recently had an old guy moment. I went to uh my local bar. I don't get out as much as I used to. It's just the reality of my life at my current age, but I realized a lot of folks in there, they were probably under the age of 30. They didn't seem to be drinking like I used to drink when I back in my bush light days. Um they were drinking seltzer, like actual seltzer with lime in it. It was just kind of strange. Like what are you seeing from the next generation of of drinkers? Like, if they're not going to drink like I did, what does it mean to the business of beer?
So I think that every generation is very unique and the amount of products today, the repertoire that the consumer has increased. This doesn't mean that people are not enjoying, drinking, engaging with beer. And beer is only where we are today because is evolving, innovating, transforming for over 5,000 years. So when you think about beverage and alcohol beverage, beer is back 5,000 years in the making. And throughout the years, it has been evolving and it evolves in terms of the liquids, the packaging, the occasions. Sometimes you flavor it, sometimes you have less alcohol, more alcohol, but our industry is very dynamic and that's why again, back in 2017, we decided to invest on this ready to drink beverage because there is an space there for innovate and space to have more consumers participating. And as a beverage company, our company is always participating on that. So beer is at the core, is who we are, but we offer more than only beer for consumers as well. And the category is growing globally. So beer, if you take any cut you want, is growing like 0.5% in volume in the last five, six years, revenues grow five, five and a half globally. So it's a great category, very big, very profitable for our partners, retailers, and continues to have an incredible uh head room for growth. This head room comes from developing markets, developing and emerging markets, and we continue to see growth across the globe.

