US: Anheuser-Busch profits set fair as US gets more attention

Anheuser-Bush has reaffirmed its earnings forecast this year, noting that it will look to focus on its domestic performance in 2008.

The US-based brewer said yesterday (21 February) that it maintains its long-term earnings growth objective of between 7% and 10%. At the same time, A-B said it plans to up its total media spend in the US this year by around 10%, while focusing its spend on "fewer brands, emphasising those like Budweiser and Bud Light that benefit the most from large scale media exposure".

This strategy includes "more frequent updates of ad creative and increased media weight, especially over the key summer selling months", the company noted.

A-B said it views the US beer pricing environment as "favourable", noting that its price increase plans for 2008 have now been largely implemented. Cost pressures remain a concern, however. "Productivity improvement and supply chain savings to mitigate commodity cost pressures are a very high priority for the company this year," A-B said.

"Over the past year, we have broadened our portfolio to enhance our participation in faster-growing high-end categories and initiated a major transformation of our selling system to better position our company for long-term growth," said company president and CEO, August Busch. "Our top priority in 2008 is to accelerate core beer sales and profitability."