Anheuser-Busch launches watermelon 'malternative'

ST. LOUIS -- Anheuser-Busch on Wednesday launched another flavor in its Bacardi Silver lineup, hoping the watermelon-tinged brew will give a warm-weather boost to a company with suddenly sluggish sales.

Bacardi Silver Watermelon is the latest flavored malt beverage, or "malternative," in the Bacardi Silver line introduced three years ago. The sweet-tasting malternatives have a broad appeal to people ages 21 to 27, said Geri Hirsch, brand manager for High End Products at the St. Louis-based brewer.

The success or failure of the line will hardly make or break Anheuser-Busch, but it is part of the company's effort to broaden its product line.

Anheuser-Busch in January also rolled out B-to-the-E -- a brew spiked with caffeine, fruit flavoring, herbal guarana and ginseng.

Hirsch would not discuss sales of the Bacardi Silver line, but Steinman said Anheuser-Busch shipped about a half-million barrels in 2004, down "double digits" from a year earlier.

Steinman said the Bacardi Silver drinks make up about 10 percent of sales in the malternative market, and only one-half of 1 percent of total Anheuser-Busch sales.

"I don't think the Bacardi line is anywhere near as important as Budweiser Select," Steinman said. "It's not something that A-B is resting its fortunes on."

Budweiser Select, a low-carb, low-calorie beer with a darker color and crisp finish, was launched last month. Anheuser-Busch executives told analysts that Budweiser Select was important in the company's hopes of boosting its volume of domestic beer shipments by at least 1 percent this year.

For malternatives, new launches are a must, Hirsch said, noting the younger drinkers are always seeking out "what's new and hip."

Anheuser-Busch also is offering drink recipes with names like Boysenberry Bling-Bling, Watermelon Sour and Melon Dollar Baby as part of the Bacardi Silver Watermelon launch. The recipes are available online and in giveaway booklets. A new ad campaign accompanies the launch.

"Entertaining is big in the summertime," Hirsch said. "You're having home parties and barbecues. We're giving them an opportunity to say, 'Hey, you don't have to just pour this from a bottle."'

Bacardi Silver Watermelon will be packaged in six-packs of 12-ounce bottles along with a 24-ounce single serve bottle.

Anheuser-Busch shares rose 45 cents to $46.10 in trading Thursday on the New York Stock Exchange.

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On the Net:

http://www.anheuser-busch.com

www.bacardisilver.com