Beer not recession-proof

Beer may be a resilient product, but it is not safe from the bleak economic scenery we’re experiencing these days.

In Russia, one of its biggest markets, Anheuser-Busch InBev, the recently formed beer company in a $52 billion takeover, will shut down a brewery for an indefinite period to cut costs as local growth weakens.

Production at the plant in the town of Pushkin, near St. Petersburg, will stop as of Dec. 15, the company announced.

In the last company’s conference call in October, Carlos Brito, ABInbev’s CEO mentioned that a “slight contraction” in first-half profit margins continued in the third quarter, and they forescast the cost of sales per hectoliter will be higher than expected after commodity prices rose.

One can only wonder if plants in the U.S. are next in line.

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1 Response to Beer not recession-proof

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