AB InBev's 0.0% Corona Cero Goes For Gold as the First Official Beer Sponsor of the Olympics

For the first time in history, the upcoming 2024 Summer Olympics will feature an official beer sponsor. Anheuser-Busch InBev SA/NV (AB InBev or the Company; rated A (low) with a Stable trend) has struck a partnership with the International Olympic Committee (IOC) through to 2028 as a Worldwide Olympic Partner, the Olympics' top sponsorship level. This follows a steady rise in the growth of the nonalcoholic market segment:

-- Global sales of nonalcoholic beer are expected to grow by a CAGR of about 6.7% to more than USD 50 billion by 2029 from USD 34 billion in 2023, compared with 3% for normal beer.
-- The rising popularity of dealcoholised brews is supported by health-conscious consumer trends and advances in product quality.
-- Growth of the nonalcoholic beer category will entice more new entrants and brand innovation, which will intensify competition across the segment.
-- Expansion of this alternative beer segment is not expected to have material impact on the credit profiles of already diversified and well-established large beer companies, such as AB InBev.

"We believe it is imperative that market players continue to invest in the no- and low-alcohol segment to capture this rising demand and to counteract the stagnant or declining volume growth of alcoholic beer, particularly in more mature beer markets such as the U.S. and Europe," says Chloe Blais, Assistant Vice President, European Corporate Ratings.