AB InBev to Launch Protein-Enhanced Beer, New Pack Sizes to Combat Shifting Tastes

Anheuser-Busch InBev plans to introduce smaller pack sizes, beers with added protein and electrolytes, and expand its non-beer offerings to drive growth amid shifting consumer preferences. Executives for the world's largest brewer outlined the strategy at a capital markets event on Tuesday, citing strained consumer incomes and the health and wellness trend as key drivers.

A Strategy for New Tastes

AB InBev, the maker of brands like Corona and Stella Artois, is battling weak beer demand in key markets such as the United States. To counter this, the company will focus on product innovation and affordability to attract a wider range of consumers.

According to Chief Marketing Officer Marcel Marcondes, a primary goal is to increase consumption among infrequent beer drinkers, with a significant opportunity among budget-conscious consumers. The company's strategy includes:

• Offering both smaller pack sizes to improve affordability and larger value packs.
• Launching non-alcoholic beers with new flavors, low calories, and functional ingredients like protein or electrolytes.
• An example already in market is a version of its Spaten beer with added protein, which has been launched in Brazil.

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Growth Beyond Beer

Beyond its core beer portfolio, AB InBev is intensifying its push into faster-growing beverage categories. The company has seen success in the U.S. with its canned cocktail brand, Cutwater, and is now setting its sights on further expansion in areas like energy drinks.

Executives stated that the energy drink market alone could add $25 billion to the company's addressable market. "In this space, we are the challengers, which gives us huge headroom for growth," CEO Michel Doukeris told investors. This diversification is a direct response to changing tastes and a way to capture revenue from consumers who are drinking less traditional beer.