USA: Anheuser-Busch expects end to US price war
Anheuser-Busch expects a price war currently hitting sales in the US market to be short-lived, The Publican communicated on June 1.
The Budweiser brewer is currently battling with rivals including SAB Miller and Molson Coors. With beer sales declining in the US, the big players resorted to fierce price cutting over recent months.
Announcing an unchanged outlook for earnings in 2005 - the company says it expects per share figures to grow in the low-single digit range - Anheuser-Busch president/chief executive Patrick Stokes said he was confident the company would successfully restore its volume momentum.
"Facing challenges is nothing new [to this company] and time after time we have emerged more profitable with a stronger foundation for future growth." Mr Stokes added the company expected "significant improvement" in domestic beer sales and profit performance in the second half of 2005 and it would "continue to target double-digit earnings per share growth over the long term".
The company, which has around half of the US beer market, believes its international business will also help drive earnings, especially in China and Mexico.
Anheuser-Busch and its partners already account for 45m barrels of beer volume in China and together have a 19 per cent share of the market.
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