President Trump is likely to have raised a glass today to Budweiser-owner Anheuser-Busch InBev (BUD) after it revealed plans to invest $15 million in its facility in St. Louis.
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Shares in BUD were 1% higher in pre-market trading.
Domestic Brew
Although that figure by itself is unlikely to pop any corks in the White House, it does show that AB InBev is making good on its previously announced $300 million commitment to boosting U.S. manufacturing. It also follows its announcement earlier this month of a new $9 million investment in its Baldwinsville, NY brewery and a $17 million investment in its Houston brewery.
This, of course, has been one of the key pillars of Trump’s tariff strategy – to increase domestic making of stuff and having American workers do the hard graft.
The funds, announced today, will support supply chain infrastructure to transport domestically grown ingredients to the company’s St. Louis, Missouri brewery and help deliver beer brands including Budweiser and Bud Light to consumers.
Tariff Defense
AB said it has invested nearly $2 billion over the last five years in 100 facilities across the U.S., but the onus on manufacturing in the States has no doubt been spurred on by the strategy of the Trump administration.
In order to avoid crippling tariffs, a number of high-profile firms have committed to ramping up U.S. spending, from tech giants such as Apple (AAPL) and Nvidia (NVDA) to motor manufacturer Honda (HMC) and pharmaceutical giant AstraZeneca (AZN).
Budweiser has previously said it was boosting investments in key brands and ramping up efforts to grow at-home consumption, as spending elsewhere – including in bars – remains pressured.
In the first quarter AB InBev said overall volumes declined by 1.9%, impacted by weak demand in China and Brazil. However, it added that North America and Europe showed “resilience”, with top and bottom-line growth.
Is BUD a Good Stock to Buy Now?
On TipRanks, BUD has a Strong Buy consensus based on 7 Buy ratings. Its highest price target is $90. BUD stock’s consensus price target is $78.83, implying a 28.07% upside.
