VOL. XCIV, NO. 247

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Sunday, December 28, 2025

Ambev S.A.

ABEV3 · B3 - Brasil Bolsa Balcao

Market cap (USD)$38B
SectorConsumer
CountryBR
Data as of
Moat score
82/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

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Overview

Ambev S.A. is a major brewer and beverage producer in the Americas, with profit concentrated in Brazil beer. Its core moats are demand-side brand strength (flagship beer brands) and a broad, scaled distribution system selling through distributors, supermarkets and retailers. In Brazil non-alcoholic beverages, licensing/bottling arrangements for global brands (notably the Pepsi portfolio) strengthen the offering and leverage the same route-to-market. Outside Brazil (CAC, Latin America South, Canada), the model relies on regional brand equity and distribution scale, with generally higher competitive and macro volatility risks than the Brazil beer franchise.

Primary segment

Brazil - Beer

Market structure

Oligopoly

Market share

55%-65% (estimated)

HHI:

Coverage

5 segments · 4 tags

Updated 2025-12-28

Segments

Brazil - Beer

Beer production and distribution

Revenue

45%

Structure

Oligopoly

Pricing

moderate

Share

55%-65% (estimated)

Peers

HEIA.AS

Brazil - Non-alcoholic beverages

Non-alcoholic beverages (carbonated soft drinks, waters, RTD teas, sports drinks)

Revenue

9.4%

Structure

Oligopoly

Pricing

weak

Share

Peers

KOPEPKOF

Central America and the Caribbean

Beer and beverages production and distribution

Revenue

12.3%

Structure

Oligopoly

Pricing

moderate

Share

Peers

HEIA.AS

Latin America South

Beer and beverages production and distribution

Revenue

22.2%

Structure

Oligopoly

Pricing

moderate

Share

Peers

CCUHEIA.AS

Canada

Beer production and distribution

Revenue

11.2%

Structure

Oligopoly

Pricing

moderate

Share

Peers

TAP

Moat Claims

Brazil - Beer

Beer production and distribution

Revenue/operating-profit shares derived from FY2024 segment reporting tables (net sales and income from operations) in Ambev Form 20-F segment reporting tables.

Oligopoly

Brand Trust

Demand

Strength: 5/5 · Durability: durable · Confidence: 4/5 · 2 evidence

Entrenched mass-market beer brands support habitual demand, premium shelf/tap placement, and marketing efficiency.

Erosion risks

  • Premiumization by competitors
  • Craft/RTD substitution
  • Alcohol advertising/marketing restrictions

Leading indicators

  • Brand volume share trends (mainstream vs premium)
  • Net revenue per hectoliter (NR/hl) vs industry
  • Portfolio mix shift (premium, no/low alcohol, RTDs)

Counterarguments

  • Heineken and other competitors can gain share in premium/pure-malt categories
  • Consumers may trade down in recessions, reducing brand-driven pricing latitude

Distribution Control

Supply

Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence

Dense route-to-market and execution breadth across retail formats increases availability and makes share gains harder for challengers.

Erosion risks

  • Retail consolidation increases buyer power
  • Third-party logistics reduces distribution differentiation
  • Channel shift to marketplaces/direct models

Leading indicators

  • Outlet coverage and service levels (fill rate / OTIF where disclosed)
  • Route-to-market cost per hl
  • Receivables quality / DSO trends

Counterarguments

  • Large retailers can pressure terms and reduce the advantage of route-to-market scale
  • Competitors can replicate distribution reach via partnerships and 3PLs

Brazil - Non-alcoholic beverages

Non-alcoholic beverages (carbonated soft drinks, waters, RTD teas, sports drinks)

Revenue/operating-profit shares derived from FY2024 segment reporting tables in Ambev Form 20-F segment reporting tables.

Oligopoly

Contractual Exclusivity

Legal

Strength: 4/5 · Durability: medium · Confidence: 4/5 · 1 evidence

Bottling/distribution licenses (notably Pepsi portfolio) expand brand portfolio and leverage existing route-to-market.

Erosion risks

  • License renewal / commercial-terms risk
  • PepsiCo strategic changes
  • Health/regulatory pressure on sugary beverages

Leading indicators

  • Renewal / amendment announcements for bottling rights
  • NAB volume and NR/hl vs peers
  • Portfolio mix shift (zero sugar, water, functional)

Counterarguments

  • Licensing does not guarantee consumer preference or category leadership
  • Strong Coca-Cola system presence limits structural advantage

Distribution Control

Supply

Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence

Shared distribution backbone reduces incremental cost-to-serve and improves shelf availability for NAB alongside beer.

Erosion risks

  • Retail consolidation increases buyer power
  • Competitors match execution with 3PL and digital ordering

Leading indicators

  • Outlet penetration for NAB SKUs
  • Distribution cost per case/hl
  • Trade-spend intensity

Counterarguments

  • Route-to-market advantage is less differentiating in packaged soft drinks than in beer in some channels

Central America and the Caribbean

Beer and beverages production and distribution

Revenue/operating-profit shares derived from FY2024 segment reporting tables in Ambev Form 20-F segment reporting tables.

Oligopoly

Brand Trust

Demand

Strength: 4/5 · Durability: durable · Confidence: 3/5 · 1 evidence

Local flagship brands and AB InBev licensed brands support consumer pull and on-trade visibility across multiple CAC markets.

Erosion risks

  • Local competition and informal channels
  • Currency volatility impacting affordability
  • Political/regulatory shocks

Leading indicators

  • Market share trends in major CAC countries
  • NR/hl and mix shift
  • On-trade presence and execution

Counterarguments

  • Brand strength can be country-specific and more vulnerable to local challengers

Distribution Control

Supply

Strength: 4/5 · Durability: durable · Confidence: 3/5 · 1 evidence

Scale distribution and commercial execution across fragmented retail helps sustain share and availability.

Erosion risks

  • Distributor disintermediation
  • Modern trade share increases bargaining power

Leading indicators

  • Outlet coverage and delivery service metrics (where disclosed)
  • Working-capital turns

Counterarguments

  • Distribution advantage can be replicated with 3PLs and targeted investments

Latin America South

Beer and beverages production and distribution

Revenue/operating-profit shares derived from FY2024 segment reporting tables in Ambev Form 20-F segment reporting tables.

Oligopoly

Brand Trust

Demand

Strength: 4/5 · Durability: durable · Confidence: 3/5 · 1 evidence

Regionally iconic brands (e.g., Quilmes, Andes) create local demand pull and defend share in concentrated markets.

Erosion risks

  • Economic volatility driving down-trading
  • Local competitors and imports in premium segments
  • Regulatory/tax changes

Leading indicators

  • Volume and share trends in Argentina and other LAS markets
  • Inflation-adjusted NR/hl
  • Premium mix and margins

Counterarguments

  • High inflation and FX controls can disrupt pricing and availability, weakening brand-driven advantages

Distribution Control

Supply

Strength: 4/5 · Durability: durable · Confidence: 3/5 · 1 evidence

Scale route-to-market helps sustain shelf presence across fragmented trade in multiple LAS countries.

Erosion risks

  • Distributor consolidation
  • Competitors invest to close execution gap

Leading indicators

  • Outlet coverage and service levels
  • Trade receivables and credit losses

Counterarguments

  • In some markets, incumbency advantages are weaker and challengers can expand rapidly with capex

Canada

Beer production and distribution

Revenue/operating-profit shares derived from FY2024 segment reporting tables in Ambev Form 20-F segment reporting tables.

Oligopoly

Brand Trust

Demand

Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence

Established domestic brands (e.g., Labatt) and global AB InBev licensed portfolio support shelf presence, though competition remains intense.

Erosion risks

  • Premium imports and craft share gains
  • Private-label expansion in retail
  • Regulatory changes in alcohol retail

Leading indicators

  • Canada volume and NR/hl trends
  • Share in mainstream vs premium segments
  • Brand health and innovation cadence

Counterarguments

  • Canada beer market is structurally competitive with strong incumbents (e.g., Molson Coors), limiting moat strength

Distribution Control

Supply

Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence

Scale distribution and commercial execution help maintain availability and service quality, but regulated channel structures reduce differentiation.

Erosion risks

  • Retail and provincial channel reform
  • Competitors match execution investments

Leading indicators

  • Distribution coverage in major provinces
  • Service-level performance metrics (where disclosed)

Counterarguments

  • Regulated distribution can compress structural advantages vs more fragmented emerging markets

Evidence

sec_filing
Ambev Form 20-F (FY2024) - Corporate Information (brands portfolio)

The Group's main own brands are Brahma, Skol, Antarctica ... among others.

Supports claim that demand is anchored in long-standing flagship beer brands.

other
Ambev IR FAQ (brand prominence)

Skol and Brahma ... are among the 10 most consumed in the world.

Company IR framing supports global brand strength and consumer pull.

sec_filing
Ambev 6-K (3Q25) - Credit risk / Customers (distribution footprint)

Sales is made to distributors, supermarkets, and retailers through a broad distribution network.

Directly supports breadth of distribution and customer dispersion.

industry_report
Morningstar company report (wide-moat commentary)

Including 60% beer market share in Brazil ...

Analyst estimate used as central point for Brazil beer share.

news
Yahoo Finance: Ambev stock soars (mentions Brazil beer share)

With a 60% market share in Brazil's beer market ...

Secondary public-market source consistent with ~60% share framing.

Showing 5 of 10 sources.

Risks & Indicators

Erosion risks

  • Premiumization by competitors
  • Craft/RTD substitution
  • Alcohol advertising/marketing restrictions
  • Retail consolidation increases buyer power
  • Third-party logistics reduces distribution differentiation
  • Channel shift to marketplaces/direct models

Leading indicators

  • Brand volume share trends (mainstream vs premium)
  • Net revenue per hectoliter (NR/hl) vs industry
  • Portfolio mix shift (premium, no/low alcohol, RTDs)
  • Outlet coverage and service levels (fill rate / OTIF where disclosed)
  • Route-to-market cost per hl
  • Receivables quality / DSO trends
Created 2025-12-28
Updated 2025-12-28

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