Corona and Stella drive profit for SAB, but traditional brands stand test of time

AB InBev has reported revenue growth in 75% of its markets , including South Africa.

South African Breweries (SAB) continues to deliver a record performance, according to its parent company's first quarter results.

The brewing giant reported local volumes that delivered double digit top- and bottom-line growth.

AB InBev said they gained share of both the beer and total alcohol markets.

This performance was led by their 'super premium portfolio', driven by sales of Corona and Stella Artois.

SAB CEO Richard (Boris) Rivett-Carnac tells The Money Show they're very pleased with the results, especially in an operating environment that continues to be tough.

"We've fortunately had a strong 2023, and we've seen that momentum continue into 2024."

"Our relatively new offerings Corona and Stella Artois are really resonating with customers. Although the consumer is squeezed - which we've seen through our numbers, we're still seeing people turn to these premium beer offerings."

Richard Rivett-Carnac, CEO - South African Breweries

On the other end of the spectrum, SAB's traditional brands like Castle and Carling Black Label are proving they do stand the test of time.

These still make up the vast majority of volumes, and profitability as a result, the SAB boss says.

"It's important that we continue to refresh and renew these brands... Carling, especially, is doing very well."

"In a tough environment, consumers do turn to brands that they trust and love, and that offer good value, which is exactly what these brands do."

Richard Rivett-Carnac, CEO - South African Breweries