AB InBev’s $300M U.S. Manufacturing Bet: A Brewed Recipe for Margin Growth and Market Dominance

In a landscape where global supply chains face relentless pressure and labor markets tighten, Anheuser-Busch InBev (AB InBev) is doubling down on a bold strategy: reinvesting in U.S. manufacturing to build operational resilience, slash costs, and secure long-term margin expansion. The company’s $300 million U.S. investment—centered on Ohio’s Columbus Regional Excellence Center, veteran workforce integration, and localized production—doesn’t just signal defensive moves. It’s a calculated play to capitalize on rising at-home consumption trends, reduce supply chain fragility, and position itself as an undisputed leader in America’s beer and beverage market.

The Ohio Pivot: A Hub for Efficiency and Talent

The cornerstone of AB InBev’s U.S. push is its Columbus Regional Excellence Center, part of its Brewing Futures initiative. This facility—expanding the Technical Excellence Center model beyond St. Louis—is designed to upskill 1,500+ regional technical workers over three years via partnerships with local trade schools. The goal? Localization of production expertise to reduce reliance on distant supply chains and streamline efficiency.

Crucially, the Ohio investment isn’t just about machinery. It’s about workforce transformation:
- Veteran Hiring: AB InBev is now the first U.S. manufacturer to adopt a digital credentialing system via the Manufacturing Institute’s Heroes MAKE America program. This translates military skills (e.g., logistics, precision engineering) into manufacturing roles, with 10% of its U.S. workforce already veterans (90% retention rate).
- Training Programs: Partnerships with Ohio’s trade schools create pipelines for entry-level roles, addressing labor shortages while ensuring a future-ready workforce.

The result? A self-sustaining talent engine that reduces turnover costs and aligns with the White House’s push for “family-sustaining wages,” as highlighted by Rep. Mike Carey. This isn’t just CSR—it’s strategic workforce optimization.

Margin Expansion: From Ohio’s Soil to the Bottom Line

The U.S. investment directly feeds into AB InBev’s financial ambitions. In Q1 2025, its Normalized EBITDA surged 7.9% to $4.855 billion, with margins expanding 218 basis points to 35.6%. Management has reaffirmed its 4-8% medium-term EBITDA growth target, and the Ohio plant is a linchpin:
- Supply Chain Resilience: Localized production reduces transportation costs and exposure to global disruptions (e.g., port delays, fuel spikes).
- Premiumization Lift: Ohio’s technical workforce will support brands like Corona (up 11.2% in non-Mexican markets) and Michelob Ultra (gaining U.S. volume share), which command higher margins.
- At-Home Consumption: No-alcohol beer segments (e.g., Corona Cero) grew 34% in revenue, driven by pandemic-era habits persisting post-lockdowns. Ohio’s focus on R&D and distribution will amplify this tailwind.

Undervalued Stock: A Buy at Current Levels

Despite these tailwinds, AB InBev’s valuation metrics scream opportunity. As of May 2025, its EV/EBITDA ratio is 13.02, below its historical median of 14.9 and just above the industry median of 11.73. This creates a compelling entry point:
- Goldman Sachs’ Buy Rating: Upgraded to “buy” with a 12-month target of $88 (vs. current $67.27), citing deleveraging progress (net debt/EBITDA to fall to 2.2x by 2026) and premium brand momentum.
- Fair Price vs. Fair Value: While some models suggest a $52.57 “fair price” (a -12.1% downside), this ignores the Ohio initiative’s long-term benefits and the 70% completion of its $2 billion buyback program.
- Upside Catalysts: The BEES Marketplace (53% GMV growth) and sustainability gains (45.7% emissions reduction vs. 2017) add intangible value to EBITDA forecasts.

Risks, but a Stronger Hand

Skeptics will point to headwinds:
- China Underperformance: A -9.2% volume drop in Q1 2025 highlights reliance on emerging markets.
- Currency Volatility: 6.3% USD revenue declines due to unfavorable exchange rates.

Yet these are tempered by AB InBev’s U.S. dominance:
- 60% of its markets saw share gains in Q1 2025.
- The $2 billion five-year U.S. investment (of which $300M is 2025’s focus) ensures it’s doubling down where risks are lowest and margins are highest.

Conclusion: Brew a Winning Portfolio with AB InBev

AB InBev’s $300M Ohio bet isn’t just about plants and pipelines—it’s a full-stack strategy to future-proof its U.S. operations, slash costs, and capture premium growth. With EBITDA margins at multiyear highs, a stock price undervalued relative to its buyback commitments and margin trajectory, and a workforce pipeline that’s both stable and innovative, this is a buy for investors seeking a resilient, high-margin brewer.

The next three years will see AB InBev’s Columbus hub become a symbol of its ability to turn reinvestment into profit. For now, the froth is in Ohio—and the stock is primed to rise.

Investor Action: Buy BUD at $67.27, targeting $88 by end-2025. Hold for the long-term margin story.