E-Malt.com News article: 4618

USA: Anheuser-Busch Cos., Inc., announced on April 5 that first quarter 2005 domestic beer volume was below previous expectations. “The company has stepped up its new product, packaging and marketing efforts, but it will take time for these new initiatives to gain traction,” said Anheuser-Busch Cos., Inc., President and Chief Executive Officer, Patrick T. Stokes. “Given Anheuser-Busch’s substantial competitive strengths in the U.S. beer market, we are confident the company will successfully restore its volume momentum.”

Domestic beer sales-to-wholesalers decreased 2.7 percent for the first quarter 2005 vs. the first quarter 2004 to 24.4 million barrels. Wholesaler inventories at the end of the quarter were about one-and-one-half days higher than at the end of the first quarter last year, representing a reduction of approximately one day versus the differential at the end of last year.

Domestic beer wholesaler sales-to-retailers were down 1.0 percent in the first quarter on a comparable selling day basis, due to generally weak industry volume conditions and the comparison with the strong performance of Michelob ULTRA in the prior year. Michelob ULTRA was the most successful new brand introduction in the beer industry in many years, and its sales have stabilized to a 2.4 percent share year-to-date in supermarkets, according to IRI data. BUD family wholesaler sales-to-retailers increased in the quarter, driven by solid growth of Bud Light and the national introduction in late February of Budweiser Select.

The company expects first quarter 2005 earnings per share of $.63 to $.64, excluding a one-time gain on the sale of the company’s equity interest in a Spanish theme park, vs. $.66 per share on a comparable normalized basis in the first quarter 2004.1/ This decline reflects the lower beer sales volume of the domestic beer company, coupled with commodity cost pressures and the incremental costs to support the company’s stepped up marketing and sales efforts. Management believes that earnings per share growth in the low-single digit range for the full year 2005 2/ (before stock option expense and one-time items in both years) is a reasonable expectation at this time.

As previously announced, the company has decided to defer its adoption of FAS 123R, “Share-Based Payment,” until the required third quarter implementation date in order to fully consider the recent interpretative guidance provided by the Securities and Exchange Commission and pending implementation guidance anticipated from the Financial Accounting Standards Board.

Anheuser-Busch Cos., Inc. will release worldwide beer volume and consolidated earnings results for the first quarter on April 27, 2005. Following the release, the company will conduct a public webcast in which management will discuss these results and the company’s outlook in greater detail. Additional details on the webcast will be provided later this month in a separate press release.


06 April, 2005