The Anheuser-Busch InBev logo is seen outside the brewer's headquarters in Leuven, Belgium in this February 26, 2014 file photo. Anheuser-Busch InBev has approached rival SABMiller about a takeover that would form a brewing colossus which makes around a third of the beer consumed globally. Belgium's AB InBev - the world's biggest brewer - makes Budweiser, Stella Artois and Corona, while Britain-based SABMiller - the No. 2 player - owns Peroni, Grolsch and Pilsner Urquell beers. REUTERS/Francois Lenoir/Files

How South Africa’s alcohol ban has hit brewing giant AB InBev – Wall Street Journal

South Africa's ban on alcohol sales has wider implications than our economy - global brewing giant AB InBev has been hard hit by a drop in sales here.

Published on:

30 Jul 2020, 3:43 pm

South Africans drink a lot of beer: AB InBev, which bought SAB Miller in 2016, makes one in four beers sold globally, and we are one of its biggest markets. So it's not surprising that the company took a $2.5 billion write-down tied to a worst-case scenario for how the coronavirus pandemic would affect sales here. Their scenario was not wrong, as we now know: the government has twice banned the sale of alcohol to take pressure off hard-pressed health services. Those alcohol bans show in AB InBev's sales figures – the company says volumes in South Africa have dropped over 60% in the quarter. So as South African drinkers bemoan their empty fridges and the effect of the ban on the economy, its worth remembering that the ban has global ramifications. – Renee Moodie

Budweiser brewer takes $2.5 billion write-down in South Africa over Covid-19

By Saabira Chaudhuri

Anheuser-Busch InBev NV reported a sharp drop in second-quarter sales as beer consumption across much of the world dropped and took a $2.5 billion write-down on its business in South Africa, where alcohol sales have been banned.

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