Bud Light Boosts A-B’s Sales

Posted by iTVX Staff on July 24th, 2008

New products gave Anheuser-Bush a lift, as the brewer today reported that second quarter net beer sales in the U.S. have increased 4.5%.

The Bud Light family—including Bud Light Lime and Bud Light Chelada—grew 5%. Budweiser’s sales for the quarter decreased 4% and Michelob, which had been repositioned as a craft-style brew, declined 5%. A-B’s revenue overall rose 6% and pushed net income up 1.8% to $677 million.

It appears the trial period for Bud Light Lime (which debuted in May) is over, since distributors are reporting momentum with reorders from retailers like Wal-Mart, bringing in 12-packs and cases of the new brew after initially stocking just six-packs. Bigger packs are a sign for wholesalers that consumers have tried the product and are coming back for more.

Whether the gains are seasonal remains to be seen, but Bud Light Lime, which costs more than Bud Light, grabbed 1.5% of beer sales in supermarkets for the period that includes the quarter plus the first week of July, per Information Resources, Chicago.

A-B is getting better in picking niche products with growth potential. Higher priced products, such as Budweiser Chelada, Bud Light Chelada and Land Shark Lager, have contributed to sales gains for bargain beers, as some consumers traded down to sub-premium priced brands like Natural Light and Busch. Even fruit flavored brews helped retail sales for the brand grow 3%.

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