Budweiser brewer AB InBev boosted by cider launch

The world’s biggest brewer AB InBev today said its newly-launched Stella Artois Cidre had helped offset a 16% decline in beer volumes in the UK.

The group, which makes Stella Artois, Beck’s and Budweiser, said beer volumes in the UK had fallen in the second quarter of 2011, after it came up against tough comparative figures a year ago when sales were boosted by the World Cup.

But it said its cider had proved a success since its launch in April and had claimed a 16% share of the market, according to industry figures.

It also hopes volumes of Budweiser will be boosted by its recently announced deal to sponsor the FA Cup for the next three years.

The group’s revenues rose 3.7% to $10bn in the quarter, while underlying profits rose 6% to $3.7bn, boosted by a strong performance in China and Brazil.

Profits were also helped by lower tax and financing costs and the weakness of the US dollar, since AB InBev generates much of its sales in currencies other than the dollar.

The Belgium-based company said in western Europe underlying profits rose 1.7% to $387m.

In the UK, Stella Artois Cidre was helping to attract new drinkers to cider, and the company claimed it was on track to become one of the industry’s most successful consumer product launches.

Its ’Le President’ advertising campaign had also been highly acclaimed, it added.

The group recently launched Stella Artois 4%, which at 4% strength is weaker than Stella Artois, in order to diversify its offer.