US: A-B hints at further spirits move

By just-drinks.com editorial team | 21 June 2006

Anheuser-Busch has hinted that it may make a concerted effort to move into the spirits category in the US.

The country's largest brewer, which is battling a flat domestic beer market, has made low-key moves to get into spirits. Last year it formed a division, Long Tail Libations, to develop spirits brands. The first offering, Jekyll & Hyde, is being test launched in selected US states.

A-B has also worked closely with Bacardi in recent years to produce RTDs under the Bacardi Silver label. Last month, the range was extended with the launch of a peach variant.
The brewer's president, August A. Busch IV, this month told local industry representatives in Boston that the company would look at its options should beer continue to lose market share at the expense of wine and spirits.

"If this trend continues, we at Anheuser-Busch will have to re-evaluate our business model going forward in terms of expanding beyond beer and broadening our position within the total alcohol industry," Busch was quoted as saying in a Wall Street Journal report today (21 June).

A-B officials failed to return requests for comment as just-drinks went to press.

Sectors: Beer & cider

Companies: A-B, Bacardi