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AB InBev Invests $14M in Houston Brewery to Boost Beer Production

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Anheuser-Busch InBev SA/NV (BUD - Free Report) , alias AB InBev, has been keen on making investments in its portfolio to drive overall growth. The company has been investing to develop a diverse portfolio of global, international, and crafts and specialty premium brands in its markets. In the latest announcement, the company unveiled a $14-million investment in its Houston brewery, a cornerstone of BUD’s U.S. operations.

More on BUD’s Latest Announcement

Via this latest investment, AB InBev looks to upgrade facilities to retain industry-leading quality standards and drive efficiency; update the critical manufacturing equipment to make beer production possible; install air rinsers on can lines to lower water usage; replace plant infrastructure with the roof of the warehouse, elevators and doors; and update wireless, fiber and copper network connectivity.

This aforesaid investment, along with the prior investments in the Houston brewery and the $22.5 million investment made last year, looks to make advancements to the facility's internal systems in order to enrich workplace safety and boost brewery efficiency. With nearly 1,000 employees in its four facilities in Texas, the company boasts a leading position in the American brewing industry.

To date, the Houston brewery has a crucial role in the $2.3 billion capital investments in Texas. The company operates over 120 facilities across the country and, along with its distributor partners, has 65,000 staff.

In the last five years, the company has invested about $2 billion in its facilities in the country to create and sustain jobs to boost the communities’ economic prosperity.

What’s More About BUD?

Year to date, BUD’s shares have lost 14.1% versus the industry’s decline of 15.4%. AB InBev has been witnessing increased costs, including commodity cost inflation and business investments. Also, the company is prone to the headwinds related to the beverage industry and other macroeconomic challenges.

 

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Nevertheless, BUD’s pricing actions, ongoing premiumization and other revenue-management initiatives have been growth drivers. The company’s relentless executions, investment in brands and accelerated digital transformation have been bolstering sales. The expansion of the Beyond Beer portfolio, and investments in B2B platforms, e-commerce and digital marketing bode well.

This Zacks Rank #3 (Hold) company’s digital transformation initiatives have been on track, with B2B digital platforms contributing about 72% to its revenues in the third quarter of 2024. The company noted that the monthly active user base of BEES reached 3.9 million users in the third quarter. Its omni-channel, direct-to-consumer ecosystem of digital and physical products generated $350 million in revenues in the same quarter.

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