The brewer's results underline the pitfalls of a buy-and-slash-costs strategy
Brewer AB InBev has stumped up for more rounds than most. It has spent $300bn on M&A in the past decade, including the £79bn “megabrew” takeover of SABMiller in 2016. Several disposals later, its debt pile sits at $85bn. The share price has halved since that landmark deal.
Results on Wednesday underlined the pitfalls of a buy-and-slash-costs strategy. As discovered by Kraft Heinz — similarly schooled by Brazilian investor 3G — that brutishly crude model needs more than low interest rates and a willingness to wield the axe to bring results.A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.
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