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A-B announces brand price decreases.

A-B announces brand price decreases

Last week Anheuser-Busch, Inc. announced plans to discount its major beer brands, effectively setting up a pricing war between the industry's leaders.

With the continuance of a predominantly flat market, Anheuser-Busch, who balked at price-cutting as a means of increasing sales in the past, has picked up on the commonly used marketing tool by the brewer's competitors.

An Anheuser-Busch spokesman said both Miller Brewing Co. and Stroh Brewery Co. have been "following a policy of continuous and deep discounting for the past 18 months" with prices as much as 25 cents lower than Anheuser-Busch products. The St. Louis brewer said its strategy would involve similar price slashes on a market-by-market basis.

At the same time Anheuser-Busch announced its new market plans, the company also reported a third-quarter net income increase of 5.2 percent to $238.3 million, up from 1988's $226.5 million. Third period revenues totaled $2.49 billion compared to last year's $2.34 billion.

Anheuser-Busch reported that its new strategy, which has already started in some markets.
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Title Annotation:Anheuser-Busch Inc.
Publication:Modern Brewery Age
Date:Oct 30, 1989
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