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Anheuser-Busch (NYSE: BUD)

Company Description

Anheuser-Busch is the largest US brewer, and is headquartered in St. Louis, MO. A-B is best known for its Budweiser, Michelob, and Busch beer brewed in 12 breweries spread across the US. Budweiser is the first nationally distributed beer in the US, in what traditionally was a regional or even local business.

A-B also operates 14 breweries in China and one in the United Kingdom. It owns part of Grupo Modelo, brewer of Corona in Mexico. It purchased Rolling Rock from InBev in '07. It has a deal to distribute Red Hook ale products in the US. According to its website, A-B also manufactures beer cans and recycles aluminum.

A-B market share was reported at 48.2% in '07 (128MM bbls), vs. 29.5% for SABMiller including Molson Coors Brewing, and 2.8% for Pabst (which markets 85 labels). Pabst products are brewed under contract primarily by Miller. Boston Beer maker of Sam Adams is the last publically traded beer brewer in the US. Among craft beers they are third (approaching 2MM bbls, less than 1% market share) behind Heineken and Corona in the US.

Yuengling (Pottsville, PA),Iron City (Pittsburgh) and Genesee/High Falls (Rochester, NY) were thought to rank 5, 6, and 7 in the US in '07. All are privately held.

In '08, InBev, a global brewing company headquartered in Belgium, made an offer for A-B. After some negotiations, the acquisition is now pending. It is expected to close near the end of '08.

The Anheuser-Busch website is here: http://www.anheuser-busch.com/Company.html

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