US: A-B set fair for 2007 despite cost pressures
Anheuser-Busch has reaffirmed its full-year earnings per share growth despite the rising costs of commodities.
Speaking in New York today (29 November), CFO and vice president, Randolph Baker, conceded that the commodity cost environment "has not been favourable", and that "mitigating the impact of commodity cost pressures is a high priority for Anheuser-Busch".
The brewer said it still believes earnings per share growth in 2007 should exceed its 7% to 10% long-term objective.
"The last two years have been a period of considerable change in the beer industry and especially at Anheuser-Busch," Baker said. "Anheuser-Busch has taken significant steps to adjust to the changing beer consumer. We have substantially expanded our portfolio. To support this broadened portfolio, we have transformed our selling system to make it both more personal and high tech at the same time.
"We have also been making changes in marketing and media, with more significant changes planned for next year. Anheuser-Busch is clearly better positioned for long-term growth due to these changes than we were two years ago."
Going forward, A-B will be introducing price increases on the majority of its US beer volume early next year, with increases in several states occurring in the fourth quarter 2007.
Sectors: Beer & cider
Rising raw material costs have been a feature of numerous companies' results over the past few months. As Jessica Harvey writes, some companies have been able to bolster themselves against this trend ...
Anheuser-Busch has launched a new advertising campaign in the UK for Michelob Lager with the strapline "Brewed for the Finest Bars Since 1896"....
Tsingtao Brewery Co. has announced plans to launch an off-trade promotion across the US this summer to "celebrate all things Asian"....
Tsingtao Brewery Co. has posted a massive lift in profits for the first quarter....
Compañía Cervecerías Unidas has posted a healthy set of results for the first three months of 2008....
US brewer Anheuser-Busch is launching Bud Light Lime - a "crisp light" lager that combines the "drinkability" of Bud Light with a splash of natural lime flavour....
Asahi Breweries is considering buying a stake in Vietnam's Saigon Beer Alcohol Beverage Corp. (Sabeco), according to reports....
The top ten most visited stories on just-drinks this week:...
- The category today - Scotch Whisky I
- Today's Market Trends - Scotch Whisky II
- Key Brands Performance - Scotch Whisky IV
- Tomorrow's Market Trends - Scotch Whisky III
- Category Trends - Scotch Whisky V
- Beam Suntory names CFO, makes structural changes
- Diageo to accept US$1m South Korea fine
- Analysts clash over AB InBev SAB Brexit impact
- Brown-Forman shuffles director pack
- Pernod switches Travel Retail Europe op's director
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends
- Soft Drinks Global Overview: Growth Opportunities Between Category Lines
- Consumer and Market Insights: Wine Market in China
- Global travel retail insights - market forecasts, product innovation and consumer trends