All articles tagged with #beer industry
Guinness is closing its Open Gate Brewery in Halethorpe, Maryland, effective November 1, 2026. The shutdown eliminates 174 positions held by Aramark employees and leaves the Chicago facility as the brand's only remaining U.S. location. The decision stems from a $1 billion restructuring plan by parent company Diageo, shifting focus away from experimental brewing toward core products like Guinness Zero.
Constellation Brands exceeded fiscal second-quarter expectations with adjusted earnings of $3.74 per share and revenue of $2.63 billion, yet underlying consumer demand remains soft. While beer shipments rose 5.5%, depletions declined slightly, signaling cautious spending. The company is pivoting to special occasions and acquiring ready-to-drink brand SpikedAde for up to $353 million to diversify beyond core beer sales.
The Japan Fair Trade Commission (JFTC) has raided the headquarters of Asahi, Kirin, Sapporo, and Suntory Spirits, alleging they conspired to fix beer prices. The investigation focuses on price hikes announced in October 2022 and April 2025, which the firms justified by rising raw material and energy costs. While the four companies dominate the market, their stock prices fell on the news, and they have pledged full cooperation with the probe.
Constellation Brands reported fiscal second-quarter adjusted earnings of $3.74 per share, exceeding Wall Street estimates of $3.56, on revenue of $2.63 billion. While beer revenue rose 5% to $2.47 billion, underlying consumer demand metrics, known as depletions, declined slightly, indicating cautious spending. The company is pivoting toward special occasions and acquiring the ready-to-drink brand SpikedAde for up to $353 million to diversify beyond core beer sales.
An OutKick opinion piece argues beer marketers are returning to image-driven campaigns after a woke-era misstep, praising Olivia Dunne’s role with Miller Lite while criticizing Bud Light for not featuring female celebrities and calling for more Glamour-sport integrations. It cites Axios’ claim that woke marketing cost at least $28 billion in market value and notes the broader culture clash, including references to Nancy Mace and Ivanka Trump, as context for the marketing debate. The piece suggests such emotionally resonant advertising can revive engagement, while Bud Light’s current strategy is portrayed as failing.
Firestone Walker announced it will acquire Stone Brewing from Sapporo USA, with the deal expected to close by Q2 2026. Stone’s beers and taprooms in San Diego, Oceanside and Pasadena will join Firestone’s portfolio, while production will shift from Escondido and Richmond to Firestone’s Paso Robles facility and Duvel USA’s Kansas City brewery. Stone’s Escondido facility is not part of the deal; Duvel will support national distribution east of the Rockies. Local marketing of Stone products is expected in the second half of 2026, and the move follows Firestone’s recent acquisition of Trumer Pils’ western operations.
Beers of the World in Henrietta is closing at the end of February due to economic and industry changes, with reduced hours until then, while its Batavia location remains open.
Modelo's sales have declined among Hispanic consumers in the US, impacting its overall performance in the beer market.
Constellation Brands anticipates a $20 million cost impact due to a 50% aluminum tariff imposed by the US, affecting margins and primarily impacting their beer packaging costs, with the company unable to fully offset these additional expenses amid softer demand and changing consumer habits.
Shares of Constellation Brands fell 4% after Donald Trump announced plans for a 25% tariff on Mexican imports, which could increase the cost of Modelo and Corona beers. Constellation, which imports all its beer from Mexico, may raise prices to offset the tariff's impact on its costs. The company is unlikely to move production out of Mexico due to an antitrust agreement. Trump's tariff plans also affected automaker stocks, though it's uncertain if these tariffs will be enacted.
Anheuser-Busch InBev, the world's largest brewer, reported a 13.5% decline in US sales in the latest quarter, largely attributed to a boycott of Bud Light following a controversial marketing campaign with transgender influencer Dylan Mulvaney. Bud Light was also dethroned as the top-selling beer in the US by Modelo. While other global regions saw growth, AB InBev's US revenues fell nearly 14%. The company plans to focus on uncontroversial marketing campaigns and has announced a multiyear sponsorship deal with the Ultimate Fighting Championship to win back customers.
Bank of America has upgraded AB InBev stock from Neutral to Buy, signaling a potential turning point for the company after the Bud Light fallout. Analysts believe that the impact of the boycott, input cost pressures, and investments in Latin America are already factored into the stock price. Margins have been declining since 2018, but BofA expects a 300-basis-point increase in the next three years. While Bud Light sales are still down 28.1% compared to last year, the company's competitors, such as Molson Coors and Constellation Brands, have seen their stocks rise. AB InBev will report earnings on October 31.
Kevin O'Leary, CEO of Anheuser-Busch InBev, plans to teach college students about Bud Light's unprecedented 25% market share collapse. O'Leary believes that the company's recent partnership with a transgender influencer triggered a backlash and led to a boycott by some beer drinkers. He emphasizes the importance of understanding and protecting a brand, stating that Bud Light's situation is unique and there is no playbook for this level of market share loss. O'Leary also mentions that he will incorporate this case into his teaching curriculum and views Bud Light's situation as a valuable learning opportunity.
Financial analysts recommend buying shares of Anheuser-Busch InBev due to its strong position in the beer industry and potential for growth. The company's recent cost-cutting measures and focus on premium brands have improved its financial performance, making it an attractive investment opportunity in the stock market.
The backlash against Bud Light's promo with transgender influencer Dylan Mulvaney has put rival beers in high demand, leading to potential supply shortages for Coors Light and Miller Lite during the Memorial Day weekend. Beer Business Daily editor Harry Schuhmacher believes that the newfound demand for light lagers not owned by Anheuser-Busch could result in a trickle-down effect on the industry. While Anheuser-Busch has begun buying back unsold, expired beer from distributors, distributors who rely on Americans purchasing Bud Light will continue to suffer. However, Schuhmacher expects the backlash will eventually die down, and Bud Light will stay on top despite long-lasting scars.