A refreshed strategy Yesterday, ABI hosted an Investor Seminar where it unveiled a new corporate purpose “To a future with more cheers.” This message incorporates a focus on growing the company’s addressable market, with a greater focus on organic growth rather than the M&A fuelled growth of the past. This market growth will be achieved by continuing its expansion into Beyond Beer categories (e.g. hard seltzers, RTDs), upselling customers through its B2B digital platforms, exploring new avenues for growth such as biotech on the back of its massive fermentation capabilities and increasing innovation. While new CEO Michel Doukeris was very respectful of the company’s heritage and track record, he acknowledged that the company had sometimes taken its eye off the ball with regards to innovation during its multi-decade market consolidation phase. Management provided medium-term guidance for the first time, though it was at EBITDA level only, which left some unanswered questions about the rate of top-line growth the company can deliver – a key metric for most Consumer Goods companies. The new target of 4-8% organic EBITDA growth is essentially in-line with our existing forecasts (the average of our FY22E-FY30E is +6.8%). Nevertheless, the commitment to a medium-term outlook reveals a level of transparency that the market clearly welcomed. Revenue is already 8% above the pre-crisis level at the 9M stage (vs the beer industry at 1.4% above the pre-crisis level) – and management intends to drive the category growth going forward. The main focus of the day was on the company’s digital capabilities. The BEES B2B platform is in 16 countries and is already doing $25bn in annualised GMV. Management believes it will prove to be an industry gold standard B2B platform, and noted that it has 1,200 engineers and developers supporting it. More than 80% of customers on the BEES platform use the suggested orders that the company creates. ABI uses the platform to offer loyalty programmes, promote brands and even in some cases extend credit. In markets where BEES is used, ABI reports incrementally higher volumes and a wider assortment. ABI also announced a target to achieve net zero across its entire value chain by 2040, and will be expanding the number of managers whose remuneration will be linked to the delivery of ESG targets.