U.S. Beer Sales Decline Unexpectedly Amid Rising Gas Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 19 hours ago
0mins
Should l Buy BUD?
Source: CNBC
- Sales Decline: U.S. beer, full malt beverages, and cider volumes fell 6.3% year-over-year through the week ending May 2, according to Nielsen data, indicating significant consumer spending pressure amid rising costs.
- Convenience Store Struggles: Sales in convenience stores like 7-Eleven and Wawa dropped approximately 9% year-over-year in the two weeks since April 26, highlighting the adverse effects of high gas prices on impulse purchases, particularly as average gas prices reached $4.51 per gallon.
- High Gas Price Markets: California, the state with the highest gas prices at about $6.16 per gallon, experienced a 16% decline in beer volume from the four weeks ending April 4 to the four weeks ending May 2, with Arizona and Texas also seeing notable declines of 10% and nearly 7%, respectively.
- Consumer Sentiment Decline: U.S. consumer sentiment hit a record low in May, with one-third of respondents citing gas prices as their primary concern, indicating that while brands like Michelob Ultra remain stable, the overall market faces significant challenges.
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Analyst Views on BUD
Wall Street analysts forecast BUD stock price to fall
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 80.150
Low
75.00
Averages
80.00
High
85.00
Current: 80.150
Low
75.00
Averages
80.00
High
85.00
About BUD
Anheuser-Busch Inbev SA is a Belgium-based company. The Company is primarily engaged in the manufacturing of beer. The Company operates through six segments: North America, Middle Americas, South America, EMEA, Asia Pacific, Global Export and Holding companies. The Company's brand portfolio includes global brands, such as Budweiser, Corona and Stella Artois; international brands, including Beck's, Leffe and Hoegaarden, and local champions, such as Bud Light, Skol, Brahma, Antarctica, Quilmes, Victoria, Modelo Especial, Michelob Ultra, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske, Cass and Jupiler. The Company's soft drinks business consists of both own production and agreements with PepsiCo related to bottling and distribution arrangements between its various subsidiaries and PepsiCo. Ambev, which is a subsidiary of the Company, is a PepsiCo bottler. Brands that are distributed under these agreements are Pepsi, 7UP and Gatorade.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Anheuser-Busch Invests $5 Million in Ohio Brewery to Boost Production
- Investment Expansion: Anheuser-Busch's $5 million investment in its Columbus, Ohio brewery aims to enhance production capacity for Michelob ULTRA and Michelob ULTRA Zero, addressing the growing demand for these fast-selling brands and reinforcing its leadership in the U.S. beer market.
- Technical Training Center: The newly opened technical skills training center will support the next generation of manufacturing professionals, with plans to upskill over 90% of its manufacturing workforce in the next five years, ensuring the company's competitive edge in technical talent and fostering economic growth in Ohio.
- Veteran Support: Anheuser-Busch collaborates with the Manufacturing Institute's Heroes MAKE America initiative to provide career opportunities in manufacturing for veterans and active service members, with approximately 10% of the Columbus workforce being veterans, reflecting the company's commitment to social responsibility.
- Long-term Commitment: This investment is part of Anheuser-Busch's $600 million initiative for U.S. operations, showcasing over $71 million invested in the Columbus brewery over the past five years, aimed at driving sustainable growth in American manufacturing.
See More
AB InBev Holds 8 of the Top 10 Most Valuable Beer Brands Globally
- Brand Value Leadership: Corona has been recognized as the most valuable beer brand globally for the third consecutive year, with an 8.3% revenue increase outside its home market in 2025 and double-digit volume growth in 30 markets, showcasing the brand's strong market performance and sustainable growth potential.
- Strong Market Performance: In Q1 2026, AB InBev achieved all-time high revenues and volume growth, with Corona's sales outside its home market growing by 16%, indicating its increasing influence in global markets, particularly due to its role as the first global beer sponsor of the Winter Olympics.
- Portfolio Advantage: According to Kantar BrandZ 2026 rankings, AB InBev holds 8 of the top 10 beer brands globally, including Budweiser and Modelo, which not only solidifies its market leadership but also demonstrates the diversity and competitiveness of its brand portfolio.
- Long-term Growth Strategy: AB InBev's Global Chief Marketing Officer, Marcel Marcondes, stated that the brand's ongoing success stems from long-term brand building and market strategies, which not only enhance brand recognition but also lay a foundation for the company's future sustainable growth.
See More
U.S. Beer Sales Decline Unexpectedly Amid Rising Gas Prices
- Sales Decline: U.S. beer, full malt beverages, and cider volumes fell 6.3% year-over-year through the week ending May 2, according to Nielsen data, indicating significant consumer spending pressure amid rising costs.
- Convenience Store Struggles: Sales in convenience stores like 7-Eleven and Wawa dropped approximately 9% year-over-year in the two weeks since April 26, highlighting the adverse effects of high gas prices on impulse purchases, particularly as average gas prices reached $4.51 per gallon.
- High Gas Price Markets: California, the state with the highest gas prices at about $6.16 per gallon, experienced a 16% decline in beer volume from the four weeks ending April 4 to the four weeks ending May 2, with Arizona and Texas also seeing notable declines of 10% and nearly 7%, respectively.
- Consumer Sentiment Decline: U.S. consumer sentiment hit a record low in May, with one-third of respondents citing gas prices as their primary concern, indicating that while brands like Michelob Ultra remain stable, the overall market faces significant challenges.
See More
U.S. Beer Sales Plummet 6.3% Amid Rising Gas Prices
- Sales Decline: U.S. beer, full malt beverage, and cider volumes fell 6.3% year-over-year through the week ending May 2, reflecting a significant drop in consumer confidence to multi-year lows, with the decline exceeding expectations and indicating market fragility.
- Convenience Store Pressure: The convenience channel has seen a notable 9% year-over-year drop in volumes over the two weeks since April 26, closely tied to reduced gas station traffic and impulse purchases, suggesting that rising gas prices are impacting consumer spending behavior.
- High Gas Price Impact: Average U.S. gasoline prices have surged approximately 52% since the onset of the Iran conflict, with California's prices reaching $6.16 per gallon, leading to a 16% decline in beer volumes over four weeks, highlighting the intensifying consumer pressure in high fuel cost markets.
- Brand Performance Divergence: While overall sales are declining, AB InBev's Michelob Ultra remains stable, whereas Bud Light and Budweiser are experiencing double-digit volume declines, with Boston Beer performing the worst, Molson Coors losing market share, and Constellation Brands gaining traction against competitors.
See More
Anheuser-Busch Invests $5M in Ohio Brewery to Boost Production
- Investment Expansion: Anheuser-Busch's $5M investment in its Columbus, Ohio brewery aims to enhance production capacity for Michelob Ultra, currently the top-selling and fastest-growing beer in the U.S., demonstrating the company's proactive response to market demand.
- Non-Alcoholic Growth: The investment will also support the production of Michelob ULTRA Zero, which is performing well in the market, reflecting the company's strategic focus on diversifying its product line to attract a broader consumer base.
- Skills Training Center: The company is opening a new technical skills training center in Columbus to cultivate the next generation of manufacturing professionals, further solidifying its operational foundation in the area and preparing for future production needs.
- Market Leadership: Despite challenges from Generation Z's declining drinking rates, Anheuser-Busch remains the market leader in the U.S. beer sector, with four brands in the top ten according to recent Nielsen data, showcasing its strong competitive position.
See More
Anheuser-Busch Invests $5 Million in Ohio Brewery to Boost Production
- Investment Expansion: Anheuser-Busch's $5 million investment in its Columbus, Ohio brewery aims to enhance production capacity for Michelob ULTRA and Michelob ULTRA Zero, addressing the growing demand for these fast-selling brands and reinforcing its leadership in the U.S. beer market.
- Technical Training Center: The newly opened technical skills training center will upskill employees in mechanical and electrical systems, with plans to enhance the capabilities of over 90% of its manufacturing workforce in the next five years, ensuring the company remains competitive in technical talent to meet future production needs.
- Veteran Support: Anheuser-Busch collaborates with the Manufacturing Institute's Heroes MAKE America initiative to provide resources for active and former service members to pursue careers in manufacturing, with approximately 10% of the Columbus workforce being veterans or active service members, reflecting the company's commitment to social responsibility.
- Long-term Commitment: This investment is part of Anheuser-Busch's $600 million initiative for U.S. operations, with over $71 million invested in Columbus alone over the past five years, demonstrating the company's strong confidence in the future of American manufacturing and its positive impact on the local economy.
See More
Anheuser-Busch Invests $5 Million in Ohio Brewery to Boost Production
- Investment Expansion: Anheuser-Busch's $5 million investment in its Columbus, Ohio brewery aims to enhance production capacity for Michelob ULTRA and Michelob ULTRA Zero, addressing the growing demand for these fast-selling brands and reinforcing its leadership in the U.S. beer market.
- Technical Training Center: The newly opened technical skills training center will support the next generation of manufacturing professionals, with plans to upskill over 90% of its manufacturing workforce in the next five years, ensuring the company's competitive edge in technical talent and fostering economic growth in Ohio.
- Veteran Support: Anheuser-Busch collaborates with the Manufacturing Institute's Heroes MAKE America initiative to provide career opportunities in manufacturing for veterans and active service members, with approximately 10% of the Columbus workforce being veterans, reflecting the company's commitment to social responsibility.
- Long-term Commitment: This investment is part of Anheuser-Busch's $600 million initiative for U.S. operations, showcasing over $71 million invested in the Columbus brewery over the past five years, aimed at driving sustainable growth in American manufacturing.
See More
AB InBev Holds 8 of the Top 10 Most Valuable Beer Brands Globally
- Brand Value Leadership: Corona has been recognized as the most valuable beer brand globally for the third consecutive year, with an 8.3% revenue increase outside its home market in 2025 and double-digit volume growth in 30 markets, showcasing the brand's strong market performance and sustainable growth potential.
- Strong Market Performance: In Q1 2026, AB InBev achieved all-time high revenues and volume growth, with Corona's sales outside its home market growing by 16%, indicating its increasing influence in global markets, particularly due to its role as the first global beer sponsor of the Winter Olympics.
- Portfolio Advantage: According to Kantar BrandZ 2026 rankings, AB InBev holds 8 of the top 10 beer brands globally, including Budweiser and Modelo, which not only solidifies its market leadership but also demonstrates the diversity and competitiveness of its brand portfolio.
- Long-term Growth Strategy: AB InBev's Global Chief Marketing Officer, Marcel Marcondes, stated that the brand's ongoing success stems from long-term brand building and market strategies, which not only enhance brand recognition but also lay a foundation for the company's future sustainable growth.
See More
U.S. Beer Sales Decline Unexpectedly Amid Rising Gas Prices
- Sales Decline: U.S. beer, full malt beverages, and cider volumes fell 6.3% year-over-year through the week ending May 2, according to Nielsen data, indicating significant consumer spending pressure amid rising costs.
- Convenience Store Struggles: Sales in convenience stores like 7-Eleven and Wawa dropped approximately 9% year-over-year in the two weeks since April 26, highlighting the adverse effects of high gas prices on impulse purchases, particularly as average gas prices reached $4.51 per gallon.
- High Gas Price Markets: California, the state with the highest gas prices at about $6.16 per gallon, experienced a 16% decline in beer volume from the four weeks ending April 4 to the four weeks ending May 2, with Arizona and Texas also seeing notable declines of 10% and nearly 7%, respectively.
- Consumer Sentiment Decline: U.S. consumer sentiment hit a record low in May, with one-third of respondents citing gas prices as their primary concern, indicating that while brands like Michelob Ultra remain stable, the overall market faces significant challenges.
See More
U.S. Beer Sales Plummet 6.3% Amid Rising Gas Prices
- Sales Decline: U.S. beer, full malt beverage, and cider volumes fell 6.3% year-over-year through the week ending May 2, reflecting a significant drop in consumer confidence to multi-year lows, with the decline exceeding expectations and indicating market fragility.
- Convenience Store Pressure: The convenience channel has seen a notable 9% year-over-year drop in volumes over the two weeks since April 26, closely tied to reduced gas station traffic and impulse purchases, suggesting that rising gas prices are impacting consumer spending behavior.
- High Gas Price Impact: Average U.S. gasoline prices have surged approximately 52% since the onset of the Iran conflict, with California's prices reaching $6.16 per gallon, leading to a 16% decline in beer volumes over four weeks, highlighting the intensifying consumer pressure in high fuel cost markets.
- Brand Performance Divergence: While overall sales are declining, AB InBev's Michelob Ultra remains stable, whereas Bud Light and Budweiser are experiencing double-digit volume declines, with Boston Beer performing the worst, Molson Coors losing market share, and Constellation Brands gaining traction against competitors.
See More
Anheuser-Busch Invests $5M in Ohio Brewery to Boost Production
- Investment Expansion: Anheuser-Busch's $5M investment in its Columbus, Ohio brewery aims to enhance production capacity for Michelob Ultra, currently the top-selling and fastest-growing beer in the U.S., demonstrating the company's proactive response to market demand.
- Non-Alcoholic Growth: The investment will also support the production of Michelob ULTRA Zero, which is performing well in the market, reflecting the company's strategic focus on diversifying its product line to attract a broader consumer base.
- Skills Training Center: The company is opening a new technical skills training center in Columbus to cultivate the next generation of manufacturing professionals, further solidifying its operational foundation in the area and preparing for future production needs.
- Market Leadership: Despite challenges from Generation Z's declining drinking rates, Anheuser-Busch remains the market leader in the U.S. beer sector, with four brands in the top ten according to recent Nielsen data, showcasing its strong competitive position.
See More
Anheuser-Busch Invests $5 Million in Ohio Brewery to Boost Production
- Investment Expansion: Anheuser-Busch's $5 million investment in its Columbus, Ohio brewery aims to enhance production capacity for Michelob ULTRA and Michelob ULTRA Zero, addressing the growing demand for these fast-selling brands and reinforcing its leadership in the U.S. beer market.
- Technical Training Center: The newly opened technical skills training center will upskill employees in mechanical and electrical systems, with plans to enhance the capabilities of over 90% of its manufacturing workforce in the next five years, ensuring the company remains competitive in technical talent to meet future production needs.
- Veteran Support: Anheuser-Busch collaborates with the Manufacturing Institute's Heroes MAKE America initiative to provide resources for active and former service members to pursue careers in manufacturing, with approximately 10% of the Columbus workforce being veterans or active service members, reflecting the company's commitment to social responsibility.
- Long-term Commitment: This investment is part of Anheuser-Busch's $600 million initiative for U.S. operations, with over $71 million invested in Columbus alone over the past five years, demonstrating the company's strong confidence in the future of American manufacturing and its positive impact on the local economy.
See More
