Major Bank Downgrades Anheuser-Busch’s Stock Status As Sales Continue To Crater
HSBC downgraded the stock of Anheuser-Busch InBev to a hold status, meaning investors should neither buy nor sell shares of it. In an analysis, Carlos Laboy, managing director for the global beverage sector of HSBC, said that AB InBev had poorly handled its efforts to shift its brand culture in the U.S. AB InBev’s sales have continued to plummet because of the fallout.
“Is ABI’s leadership getting the brand culture transformation right? It’s mixed,” Laboy wrote in a note that was published on CNBC Wednesday, via the New York Post. “At [Brazilian beverage giant] Ambev, we think the answer is ‘yes;’ in the U.S., we think it’s ‘no’,” Laboy wrote.
“The way this Bud Light crisis came about a month ago, management’s response to it and the loss of unprecedented volume and brand relevance raises many questions,” Laboy added. “Why did its US leadership underestimate the risk of pushback given the recent experience of other firms? Is A-B hiring the best people to grow the brands and gauge risk? If Budweiser and Bud Light are iconic American ideas that have long brought consumers together, why did these marketers fail to invite new consumers without alienating the core base of the firm’s largest brand?”
