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Ambev S.A. American Depositary Shares (Each representing 1 Common Share)

ABEV · NYSE

Symbol: ABEV
Type: Stock
Sector: Consumer Staples
Industry: Beverages
Exchange: NYSE

Ambev is the largest brewer in Latin America by volume and the fourth- largest beer producer in the world. It produces, distributes, and sells beer and PepsiCo products in Brazil and other Latin American countries. It also owns Argentina's largest brewer, Quinsa. Ambev was formed in 1999 through the merger of Brazil's two largest beverage companies, Brahma and Antarctica. In 2004, Ambev combined with Canadian brewer Labatt, giving Interbrew (now Anheuser-Busch InBev) a controlling interest.

Key Issues

Bullish view

Ambev’s Q2 update described stronger operating performance led by beer-volume growth, revenue management and margin expansion, suggesting the business can improve profitability while investing for future demand.

Bearish view

The company is also continuing brand activations tied to the FIFA World Cup. Those investments could make the durability of margin expansion and the near-term returns on stronger operating performance a central concern.