USA: Beer is a US$78.1 billion industry in the U.S. and represents 54% of retail dollar sales of alcohol consumption, according to Adams Beverage Group. Beer accounts for 87% of alcohol consumption by volume. Beer consumption on a gallonage basis declined 0.6% in 2003, a small number, but significant given the enormous base.

The outlook for big U.S. beer companies is as flat as the third-quarter earnings reported in late October by Anheuser-Busch and Adolph Coors. Anheuser reported a 3% percent third-quarter gain, and Coors' earnings per share stayed the same as a year ago's $1.68. While several Wall Street analysts downgraded Anheuser, the majority of Coors analysts kept their hold ratings following a round of downgrades in 2003.

Credit Suisse First Boston beverage analyst Andrew Conway said: "Wine and spirits could continue to take share from beer, as these categories can better capitalize on shifting consumer trends. Spirits offer greater variety, a more premium image, and are benefiting from increasing brand investment." Conway downgraded Anheuser from outperform to neutral.

30 October, 2004