Deutsche Bank's Beer Beverage Industry Report

Deutsche Bank's Beer Report: Annheuser-Busch InBev ABI BUD is continuing to emphasize global brands, focusing on profitability over volume, and long-term growth of US volume despite 2009 declines, Deutsche Bank reports. Concerns are the possible lack of flexibility on promotion to keep brands relevant through the recession, although ABI has proven itself to be capable of cutting costs to meet number goals. Deutsche Bank asks: Can the acquisition of Anheuser Busch really be considered a good deal if the steady increase in prices stunt domestic volumes? Molson Coors Brewing Company TAP has reported several quarters of volume weakness consecutively but has outlined some encouraging news for premium lights. Coors Light continues to lead share trends, but no improvement was reported from the Miller side, according to Deutsche Bank. TAP is looking to emphasize improved share trends in Canada, indicating pricing should improve in 2H. Constellation Brands, Inc. STZ has been seeing healthier growth in its wine category, while beer has management hopeful that recovery of its import segment, i.e. Corona promotions, as it dips deeper than in 2009. The Boston Beer Company SAM is experiencing slowing of volumes from the double digits reported in June, and is echoing management commentary about slow growth out of the last quarter. Labor Day reported positive feedback, and thus 3Q estimates have been maintained at $0.83.