As Dlight predicted, Anheuser-Busch (BUD) reported a 1.3% lower profit in Q1 than in the same quarter of last year. Among some of the factors affecting the lower profit were higher expenses (grains, aluminum, etc.) and a slowdown in U.S. sales volume. Also, investments in foreign countries like China and Mexico fell 21%. Domestically, there has been a slowdown in Corona consumption, and A-B has added brands like, Monster Energy and Beck’s to its line-up in order to solidify and diversify the company.
What should we look for in the future from BUD? Expect the summer numbers to mean a lot. The heart of A-B is the Bud and Bud Light product, and without strong numbers from those two brands, the company will lose again. The company is creating new products like Landshark beer and Bud Light Lime, but most think that this strategy is too little too late with Miller Chill and Corona already out there.
My take? Well, BUD is hurting, but with the summer coming up and downturn in the economy, I expect to see beer numbers go up. If it is any indication, Natty and Busch sales were still strong (go college students!), and I believe that the summer months will see some profit as people trade down from pricier alcohol. Moral of the article…go to Clybourne and get some Landshark!
-Mudabrock
Sources:
No comments:
Post a Comment