Global Expansion Adds To Its Prospects

Article Excerpt

ANHEUSER-BUSCH COMPANIES INC. $51 (New York symbol BUD; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 749.6 million; Market cap: $38.2 billion; WSSF Rating: Above average) is the world’s largest brewer. Major brands include Budweiser, Bud Light, Busch and Michelob. Anheuser-Busch accounts for roughly half of the beer sold in the United States. Beer supplies 85% of the company’s profit. The other 15% come from its nine theme parks and aluminum can recycling operations. Warren Buffett’s Berkshire Hathaway owns roughly 5% of the stock. Overall domestic beer consumption is still growing slowly. However, beer sales to the important 21 to 27 age group are starting to rise. Anheuser-Busch hopes to spur even more sales to these younger drinkers with several new products, such as flavored beers. A new deal that makes Anheuser- Busch the exclusive U.S. distributor of several premium European brands such as Stella Artois should help the company take advantage of growing interest in imported beers. The company can charge more for…