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AB InBev vs. Boston Beer: Which Brewer is a Better Investment Now?
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Key Takeaways
BUD leverages premiumization, global brands and digital platforms to aid growth despite flat China volumes.
BUD's BEES and DTC platforms are scaling fast, boosting revenues, reach and one-to-one consumer engagement.
SAM faces craft beer pressure, slowing hard seltzer trends and tariff costs despite diversification efforts.
In a rapidly evolving beverage landscape, Anheuser-Busch InBev SA/NV (BUD - Free Report) , alias AB InBev, and The Boston Beer Company, Inc. (SAM - Free Report) emerge as two distinct contenders competing to strengthen their influence in the alcoholic beverage market. Both companies operate at the intersection of strong demand and shifting consumer lifestyle preferences globally. While AB InBev commands the industry as a global brewing powerhouse, Boston Beer stands out as a leading U.S. craft brewer with a growing presence beyond traditional beer.
BUD dominates the brewing industry with its expansive sourcing and distribution network, key focus on premiumization, digital revolution and consistent investment in brand equity. In contrast, SAM leverages its rich craft heritage to build brand loyalty and aid premium growth. While the two companies share similarities in being renowned alcoholic beverage firms, their core business models, market reach and growth strategies diverge significantly.
Let’s take a closer look at which of these two brewing powerhouses is better positioned for long-term growth, and which stock appears more compelling at the moment.
The Case For BUD
Premiumization remains a central growth pillar for AB InBev, supported by continued investment in a broad portfolio of global, international, craft and specialty premium brands. The company’s global brands continue to anchor its premiumization strategy and drive a higher-value mix. This was evident in third-quarter 2025 results, where premium and super-premium brands delivered strong performances despite the above-core portfolio remaining flat year over year due to softness in China.
AB InBev is steadily building new digital capabilities to strengthen its connection with customers, with a clear focus on digitizing and monetizing its ecosystem. The company continues to scale its technology-led platforms, particularly its B2B and e-commerce channels such as BEES and Zé Delivery. BEES delivered a strong performance, generating $13.3 billion in gross merchandise value (GMV), up 11% year over year, while quarterly GMV surged 66% from the prior year, nearing the $1 billion mark. The BEES marketplace also expanded to more than 500 partners, reflecting rising adoption and ecosystem depth.
The company’s digital transformation initiatives have been on track, with B2B digital platforms contributing about 70% to its revenues in third-quarter 2025. Its omnichannel, direct-to-consumer (DTC) ecosystem of digital and physical products generated $325 million in revenues in third-quarter 2025. In DTC, BUD’s digital platforms enable a one-to-one connection with consumers, hence developing new occasions. Its digital platforms recorded $138 million in revenues, reaching 11.9 million consumers and generating nearly 18 million orders online. Digital momentum is likely to continue and bolster the company’s overall revenues.
AB InBev’s globally integrated operating model combines the benefits of scale with the flexibility to adapt to local market dynamics. Backed by an unmatched global presence, the company boasts one of the most comprehensive and diversified beverage portfolios in the brewing industry. Megabrand revenues increased 3% year over year in the reported quarter, reflecting resilient consumer demand, with Corona emerging as the standout performer.
As demand for Beyond Beer continues to gain momentum, BUD is actively expanding its portfolio beyond traditional beer, ranging from spirits-based ready-to-drink (RTD) cocktails to malt-based RTDs, flavored beverages, hard seltzers and spritzers. Collectively, these initiatives strongly position AB InBev for sustained growth, also aiming for a year-over-year EBITDA growth of 4-8% in 2025.
The Case For SAM
Boston Beer, a legacy U.S. craft brewer, has established a distinctive niche quality, authenticity and innovation. While deeply rooted in its craft beer heritage, the company has successfully transformed from a pioneering craft brewery into a dynamic beverage player, with a diversified portfolio that includes beer, cider, flavored malt beverages and hard seltzers. Boston Beer has diversified its lineup with beverages like Truly Hard Seltzer and has grown beyond traditional beer.
One of the most iconic names in American craft brewing, Samuel Adams serves as the cornerstone of Boston Beer’s portfolio. However, the brand has faced ongoing challenges amid an increasingly competitive craft beer landscape, shifting consumer preferences and sluggish category growth, which may temper its appeal among younger or more niche craft beer drinkers. In response, Boston Beer is executing a targeted growth strategy focused on revitalizing its Samuel Adams and Angry Orchard brands, driving cost-efficiency initiatives and investing in forward-looking innovation. The launch of American Light is helping Samuel Adams secure additional shelf space, even as overall craft beer shelf space continues to contract.
SAM’s diversification strategy centers on expanding its “Beyond Beer” portfolio, including hard seltzers, ciders and other alternative alcoholic beverages, to capitalize on the evolving consumer taste, reducing reliance on the traditional beer segment. It actively makes innovations in alcoholic beverages, including high-profile collaborations.
However, Boston Beer has been witnessing a slowdown in the hard seltzer category in recent quarters. The slowing hard seltzer trends have been hurting its depletions to some extent. The company has been witnessing higher expenses and tariff-related issues. Advertising, promotional and selling expenses have been adding up to costs and hurting profitability. Uncertainty surrounding the evolving tariff landscape continues to pose a potential headwind to performance in the quarters ahead. Management had forecast tariffs to have an unfavorable impact of $9-$13 million, hurting gross margin by 40-60 basis points in 2025.
How do Estimates Compare for BUD & SAM?
The Zacks Consensus Estimate for AB InBev’s 2025 sales indicates a drop of 1.3% while EPS implies year-over-year growth of 3.1%. BUD’s annual sales and earnings are slated to increase 6.3% and 13.6% year over year, respectively, in 2026.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Boston Beer’s 2025 sales implies a year-over-year drop of 2.4%, while EPS is likely to grow 0.7%. SAM’s annual sales and earnings are slated to increase 0.3% and 19.5% year over year, respectively, in 2026.
Image Source: Zacks Investment Research
Price Performance & Valuation of BUD & SAM
In the past year, BUD stock had the edge in terms of performance and had shown a consistent return, having recorded a total return of 43.2%. This has noticeably outpaced the industry’s 10.8% growth, benchmark S&P 500’s return of 18.4% and SAM’s 14.4% decrease.
One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation perspective, AB InBev trades at a forward price-to-earnings (P/E) multiple of 16.56X, which is slightly above the industry’s multiple of 15.05X. BUD stock also trades below SAM’s forward 12-month P/E multiple of 18.95X.
Image Source: Zacks Investment Research
AB InBev’s valuation is comparatively cheaper. The company is capitalizing on strong momentum across high-growth brands such as Budweiser, Stella Artois and Corona, which are driving robust revenue growth and gaining market share. Supported by a diversified global presence, ongoing digital transformation and a well-defined strategic roadmap, the company’s valuation points to meaningful upside potential.
SAM stock seems pricey. Boston Beer’s efforts to reposition the business to enhance competitiveness and deliver sustainable, profitable long-term growth are encouraging. However, persistent challenges, including the sluggish performance of the Samuel Adams brand, shrinking craft beer shelf space and tariff-related headwinds, cast uncertainty over the sustainability of its premium valuation.
Conclusion
AB InBev stands out as the more compelling investment opportunity, supported by strong stock performance, an attractive valuation and a clearly defined growth path. While both companies operate within the same broader beverage market, BUD’s scale, global distribution capabilities and diversified portfolio provide a distinct competitive advantage. Its ability to deliver stability, drive meaningful product innovation, expand beyond traditional beer categories and leverage technology positions the company well for sustained momentum.
Moreover, BUD’s earnings potential and growth initiatives underscore a business model that resonates with investor confidence. Backed by solid operational execution and an ability to adapt to evolving consumer preferences, the company demonstrates resilience and discipline in a dynamic operating environment. In contrast, SAM presents a longer-term opportunity, supported by its diversification strategy and ongoing repositioning efforts.
Under this head-to-head comparison, AB InBev takes the lead as the compelling pick for investors looking for a blend of value and growth potential. AB InBev currently carries a Zacks Rank #3 (Hold), whereas Boston Beer has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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AB InBev vs. Boston Beer: Which Brewer is a Better Investment Now?
Key Takeaways
In a rapidly evolving beverage landscape, Anheuser-Busch InBev SA/NV (BUD - Free Report) , alias AB InBev, and The Boston Beer Company, Inc. (SAM - Free Report) emerge as two distinct contenders competing to strengthen their influence in the alcoholic beverage market. Both companies operate at the intersection of strong demand and shifting consumer lifestyle preferences globally. While AB InBev commands the industry as a global brewing powerhouse, Boston Beer stands out as a leading U.S. craft brewer with a growing presence beyond traditional beer.
BUD dominates the brewing industry with its expansive sourcing and distribution network, key focus on premiumization, digital revolution and consistent investment in brand equity. In contrast, SAM leverages its rich craft heritage to build brand loyalty and aid premium growth. While the two companies share similarities in being renowned alcoholic beverage firms, their core business models, market reach and growth strategies diverge significantly.
Let’s take a closer look at which of these two brewing powerhouses is better positioned for long-term growth, and which stock appears more compelling at the moment.
The Case For BUD
Premiumization remains a central growth pillar for AB InBev, supported by continued investment in a broad portfolio of global, international, craft and specialty premium brands. The company’s global brands continue to anchor its premiumization strategy and drive a higher-value mix. This was evident in third-quarter 2025 results, where premium and super-premium brands delivered strong performances despite the above-core portfolio remaining flat year over year due to softness in China.
AB InBev is steadily building new digital capabilities to strengthen its connection with customers, with a clear focus on digitizing and monetizing its ecosystem. The company continues to scale its technology-led platforms, particularly its B2B and e-commerce channels such as BEES and Zé Delivery. BEES delivered a strong performance, generating $13.3 billion in gross merchandise value (GMV), up 11% year over year, while quarterly GMV surged 66% from the prior year, nearing the $1 billion mark. The BEES marketplace also expanded to more than 500 partners, reflecting rising adoption and ecosystem depth.
The company’s digital transformation initiatives have been on track, with B2B digital platforms contributing about 70% to its revenues in third-quarter 2025. Its omnichannel, direct-to-consumer (DTC) ecosystem of digital and physical products generated $325 million in revenues in third-quarter 2025. In DTC, BUD’s digital platforms enable a one-to-one connection with consumers, hence developing new occasions. Its digital platforms recorded $138 million in revenues, reaching 11.9 million consumers and generating nearly 18 million orders online. Digital momentum is likely to continue and bolster the company’s overall revenues.
AB InBev’s globally integrated operating model combines the benefits of scale with the flexibility to adapt to local market dynamics. Backed by an unmatched global presence, the company boasts one of the most comprehensive and diversified beverage portfolios in the brewing industry. Megabrand revenues increased 3% year over year in the reported quarter, reflecting resilient consumer demand, with Corona emerging as the standout performer.
As demand for Beyond Beer continues to gain momentum, BUD is actively expanding its portfolio beyond traditional beer, ranging from spirits-based ready-to-drink (RTD) cocktails to malt-based RTDs, flavored beverages, hard seltzers and spritzers. Collectively, these initiatives strongly position AB InBev for sustained growth, also aiming for a year-over-year EBITDA growth of 4-8% in 2025.
The Case For SAM
Boston Beer, a legacy U.S. craft brewer, has established a distinctive niche quality, authenticity and innovation. While deeply rooted in its craft beer heritage, the company has successfully transformed from a pioneering craft brewery into a dynamic beverage player, with a diversified portfolio that includes beer, cider, flavored malt beverages and hard seltzers. Boston Beer has diversified its lineup with beverages like Truly Hard Seltzer and has grown beyond traditional beer.
One of the most iconic names in American craft brewing, Samuel Adams serves as the cornerstone of Boston Beer’s portfolio. However, the brand has faced ongoing challenges amid an increasingly competitive craft beer landscape, shifting consumer preferences and sluggish category growth, which may temper its appeal among younger or more niche craft beer drinkers. In response, Boston Beer is executing a targeted growth strategy focused on revitalizing its Samuel Adams and Angry Orchard brands, driving cost-efficiency initiatives and investing in forward-looking innovation. The launch of American Light is helping Samuel Adams secure additional shelf space, even as overall craft beer shelf space continues to contract.
SAM’s diversification strategy centers on expanding its “Beyond Beer” portfolio, including hard seltzers, ciders and other alternative alcoholic beverages, to capitalize on the evolving consumer taste, reducing reliance on the traditional beer segment. It actively makes innovations in alcoholic beverages, including high-profile collaborations.
However, Boston Beer has been witnessing a slowdown in the hard seltzer category in recent quarters. The slowing hard seltzer trends have been hurting its depletions to some extent. The company has been witnessing higher expenses and tariff-related issues. Advertising, promotional and selling expenses have been adding up to costs and hurting profitability. Uncertainty surrounding the evolving tariff landscape continues to pose a potential headwind to performance in the quarters ahead. Management had forecast tariffs to have an unfavorable impact of $9-$13 million, hurting gross margin by 40-60 basis points in 2025.
How do Estimates Compare for BUD & SAM?
The Zacks Consensus Estimate for AB InBev’s 2025 sales indicates a drop of 1.3% while EPS implies year-over-year growth of 3.1%. BUD’s annual sales and earnings are slated to increase 6.3% and 13.6% year over year, respectively, in 2026.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Boston Beer’s 2025 sales implies a year-over-year drop of 2.4%, while EPS is likely to grow 0.7%. SAM’s annual sales and earnings are slated to increase 0.3% and 19.5% year over year, respectively, in 2026.
Image Source: Zacks Investment Research
Price Performance & Valuation of BUD & SAM
In the past year, BUD stock had the edge in terms of performance and had shown a consistent return, having recorded a total return of 43.2%. This has noticeably outpaced the industry’s 10.8% growth, benchmark S&P 500’s return of 18.4% and SAM’s 14.4% decrease.
One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation perspective, AB InBev trades at a forward price-to-earnings (P/E) multiple of 16.56X, which is slightly above the industry’s multiple of 15.05X. BUD stock also trades below SAM’s forward 12-month P/E multiple of 18.95X.
Image Source: Zacks Investment Research
AB InBev’s valuation is comparatively cheaper. The company is capitalizing on strong momentum across high-growth brands such as Budweiser, Stella Artois and Corona, which are driving robust revenue growth and gaining market share. Supported by a diversified global presence, ongoing digital transformation and a well-defined strategic roadmap, the company’s valuation points to meaningful upside potential.
SAM stock seems pricey. Boston Beer’s efforts to reposition the business to enhance competitiveness and deliver sustainable, profitable long-term growth are encouraging. However, persistent challenges, including the sluggish performance of the Samuel Adams brand, shrinking craft beer shelf space and tariff-related headwinds, cast uncertainty over the sustainability of its premium valuation.
Conclusion
AB InBev stands out as the more compelling investment opportunity, supported by strong stock performance, an attractive valuation and a clearly defined growth path. While both companies operate within the same broader beverage market, BUD’s scale, global distribution capabilities and diversified portfolio provide a distinct competitive advantage. Its ability to deliver stability, drive meaningful product innovation, expand beyond traditional beer categories and leverage technology positions the company well for sustained momentum.
Moreover, BUD’s earnings potential and growth initiatives underscore a business model that resonates with investor confidence. Backed by solid operational execution and an ability to adapt to evolving consumer preferences, the company demonstrates resilience and discipline in a dynamic operating environment. In contrast, SAM presents a longer-term opportunity, supported by its diversification strategy and ongoing repositioning efforts.
Under this head-to-head comparison, AB InBev takes the lead as the compelling pick for investors looking for a blend of value and growth potential. AB InBev currently carries a Zacks Rank #3 (Hold), whereas Boston Beer has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.