Diving into Cutwater: Incrementally bullish on ABI; Rough waters for spirits?

Research evidence excerpt

Diving into Cutwater: Incrementally bullish on ABI; Rough waters for spirits?

Flash Note Consumer | Global Beverages

June 18, 2026

AB Inbev Robert Ottenstein Greg Porter 212-653-9020 212-653-9042

BUD | $82.91 Robert.Ottenstein@evercoreisi.com Greg.Porter@evercoreisi.com

Outperform | Target Price/Base Case: $105.00 JD Todd

Company Update 212-812-2912

JD.Todd@evercoreisi.com

We performed a Numerator analysis looking at Cutwater’s growth over 2024-YTD. The analysis looks at

the growth composition of the brand as well as the brands and categories from which Cutwater is sourcing.

The takeaways below suggest further upside for Cutwater, which is profit-accretive, with limited occasion

cannibalization. Notably, RTDs now make up ~M-HSD% of ABI’s U.S. portfolio and exemplify the portfolio

transformation toward more premium, higher growth brands. ABI’s three RTD brands each have its own

consumer targeting: Cutwater is high ABV, strong flavor; NUTRL is moderate ABV and low calories,

sessionable, sophisticated; BeatBox is high ABV, strong flavor, sweet, high energy, party occasion. Our

recent industry panel highlighted how consumers are looking for made for purpose RTD brands, rather than

line extensions of existing brands. Cutwater addresses this need state and now is a top 10 $ spirit brand.

More broadly, we remain impressed with the across-the-board progress we are seeing at ABI and view the

company as increasingly the global leader in beverage alc. ABI has an unmatched beer portfolio, now

meaningfully augmented by its Beyond Beer offerings, is the leader in eCommerce and digital technology,

and has hard to match scale advantages in procurement and media properties. In sum, ABI has all the

elements of a +HSD% to +DD% compounder worthy of a 20x+ multiple.