Monday, January 31, 2005

Are You Drinking Enough Beer

Anheuser-Busch is the house hold name for many beer drinkers. The stock continue to increase every year since 1994 until last year. Oh no there was a 2% slipp up. Rivals like Coors and Molson are taking their share of profits. St. Louis has been the larget brewing company in the U.S. Eventhough there was a 2% decrease in the stock market, Anheuser-Busch have no plans of slowing down. For $2.4 million for a 30 second time slot, Anheuser-Busch already bought 10 out of the 58 spot available during Super Bowl sunday. In addition for other competitors like Coors and Molson, the wine market is gaining a bigger share of gtowth in the U.S. There has been a relativiely stagnat growth rate, about 0.4% increase in 2004 (wholesalers in the U.S).

Eventhough there was a 2% decrease, Anheuser-Busch believes that there will be a 10% increase to $2.73 a share. The sales for 2005 will be increase to 4%, which means $15.5 Billion dollars for Anheuser-Busch. New products are suppose to enter the market like Budweiser select (by the end of february) and B-to-the-E which is Bud Light infused with caffiene, ginseng, and guarana to compete with other alocoholic drinks (Red Bull). There is no slowing down for the Busch company. Not only are they dominating the U.S market they want to conquer the international market as well. There will be a higher potential growth in other countries like Mexico (Mexico has the largest export market). Anheuser-Bush wants partnerships with Canada, Ireland, Spain, Italy, and Argentina. They have alredy expanded to China (4th largest brewer) which is called the Harbin Brewery Group.

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