AB InBev begins brewing Corona Extra in Germany 

GERMANY – AB InBev, the world’s largest brewer, has commenced brewing its popular beer brand, Corona Extra, in Germany.  

According to sources cited by Just Drinks, the production is taking place at AB InBev’s Hasseröder brewery in Wernigerode, central Germany. 

The Belgium-headquartered company confirmed to news agency dpa-AFX that it is already brewing Corona Extra at the Wernigerode site.  

AB InBev had to obtain official permits to initiate production, as Germany’s strict ‘purity law’ limits brewers to using only malt, hops, yeast, and water in beer production. Corona Extra’s recipe includes corn and rice, necessitating special permissions. 

This move aligns with AB InBev’s strategy to bring production closer to key markets. Similar initiatives have been undertaken in the US, where the company has localized the brewing of brands such as Stella Artois, Bass, and Beck’s. 

Despite potential brand perception issues, as noted by Rabobank analysts Francois Sonneville and Jim Watson, who referenced consumer backlash when Beck’s shifted production to the US, AB InBev continues to prioritize local production to enhance operational efficiency and market responsiveness. 

In the first quarter of 2024, AB InBev reported a 2.6 percent increase in total revenue, with revenue per hectoliter growing by 3.3 percent.  

Approximately 70 percent of this revenue was generated through B2B digital platforms, with the BEES platform reaching 3.6 million monthly active users.  

Although total volumes declined by 0.6 percent, normalized EBITDA rose 5.4 percent to US$4.987 billion, with a margin expansion of 34.3 percent. 

In South Africa, revenue grew by mid-teens, driven by pricing actions and continued premiumization.  

For 2024, AB InBev projects EBITDA growth in line with its medium-term outlook of 4-8 percent, reflecting current assessments of inflation and other macroeconomic conditions. 

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