Anheuser-Busch InBev (NYSE:BUD) (ABI), the brewer behind Corona and Stella Artois, left analysts at Deutsche Bank debating whether it can retain shelf space after its better-than-expected second-quarter results were slightly overshadowed by the fallout of its Bud Light controversy.
“The key debate… is whether or not ABI will retain shelf space in the retail channel when retailers reset,” the German bank said.
On a recent call, ABI's management shed some light on the situation, revealing that only 20% of retailers are expected to reset in the fall, and a third of them have already completed the process, contrasting with messages from other industry rivals.
Nielsen data indicates a 6.4% decline in Bud Light distribution in July, suggesting that some level of adjustment has already taken place, Deutsche Bank AG (NYSE:DB) added.
Downgrading the brewer's European share price target from €65 to €60, analysts at the bank maintained their ‘buy’ rating for the stock.
Shares in ABI are trading half a percent lower on Friday, having opened at around €52.3.