Outlook Good For Anheuser-Busch

In an effort to adapt to a changing beer industry -- and perhaps in response to the MillerCoors joint venture between Molson Coors and SABMiller in the United States -- Anheuser-Busch's management reviewed the company's strategies and reaffirmed expectation for earnings per share growth to exceed its 7 percent to 10 percent longterm objective for the full year of 2007. "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," reports W. Randolph Baker, vice president and chief financial officer, Anheuser-Busch. In addition, Anheuser-Busch plans to implement price increases on the majority of its U.S. beer volume in early 2008, with increases in several states occurring in the fourth quarter 2007. On the other hand, in an unfavorable commodity cost environment, Anheuser-Busch is making an effort to mitigate the impact of commodity cost pressures by consistently delivering significant annual productivity improvement savings.