(Yicai) March 14 -- Shares of Budweiser Brewing Company APAC advanced after the major seller of beer in the Asia Pacific denied a media report about plans to cut thousands of jobs this year.

Budweiser APAC [HKG: 1876] closed 5 percent higher at HKD9.07 (USD1.20) in Hong Kong today, extending the year-to-date uptick to 25 percent.

Budweiser APAC will continue to make long-term investments in China, the Hong Kong-based unit of Anheuser-Busch InBev that sells Corona, Hoegaarden, and Stella Artois in the Asia Pacific region announced today.

Bloomberg reported yesterday, citing people familiar with the matter, that Budweiser APAC was planning to slash its operating costs by around 15 percent this year, which allegedly included thousands of job cuts.

Last year's financial report indicates recent workforce adjustments. In 2024, Budweiser APAC employed over 21,000 people, down from the previous year's 25,000 workers.

The beer seller's China operations are facing new challenges. Last year, local sales declined by 12 percent from 2023 and revenue fell 13 percent. The downturn was "driven by weak consumer sentiment in a soft industry, with slower traffic and less spending in on-premise channels where our footprint is more pronounced," according to the firm.

Moreover, local rivals are gaining traction. Leading domestic firms such as China Resources Beer Holdings, the seller of Pilsner Urquell, Carlsberg, and Heineken, and Tsingtao Brewery, the owner of Tsingtao and sub-brands such as Tsingtao 1903 and Tsingtao Lemon Beer, have accelerated upgrades to premium products since 2018.

The share of China Resources' premium products -- referring to bottles priced above CNY8 (USD1.10) -- exceeded a fifth in the first half of last year, up from less than 12 percent before 2022, according to the Hong Kong-based firm's financial reports.

Budweiser APAC is shaking up its top management. Late last month, the firm announced its first chief executive change in seven years. Global Supply Chain Operations Chief Cheng Yanjun will succeed Jan Craps as the new CEO and co-chairman, effective April 1.

Editor: Emmi Laine