A-B Energizing 180

Testing draft version.

Anheuser-Busch is trying to energize its 180 lineup with new products and innovation.

A-B disclosed in its latest 10-K filing with the Securities and Exchange Commission that it is testing a draft version of the energy drink. That’s on top of rolling out three new low-calorie flavors in 2007.

From the report:

The Company has energy drinks, “180”, “180 Orange”, “180 Blue”, “180 Red” (introduced in 2007), “180 Blue Low Calorie” (introduced in 2007) and “180 Orange Low Calorie” (introduced in 2007) in the energy drink category. 180, 180 Orange and 180 Blue are sold on a nationwide basis, 180 Red is sold in 49 states, and 180 Blue Low Calorie and 180 Orange Low Calorie in 40 states. All 180 brands are available in packaged form only with the exception of 180 which is in test in draught form.

A-B hopes to tap into the growing energy drink area as it diversifies from beer in search of new sources of growth. Its major initiative is a distribution deal with Hansen Natural, marketer of Monster. But it is stepping up support of its small 180 line.

A-B President and CEO August Busch IV called out this drive during a recent meeting with analysts:

"And through our alliance with Hansen Natural and their Monster brands, as well as our own 180 portfolio, we have further leveraged our competitive advantages and established our presence in the attractive and high-margin energy drink business."

And Chief Financial Officer W. Randolph Baker discussed energy drink initiatives in October in response to a question from an analyst.

From a transcript of the analyst call:

W. RANDOLPH BAKER: Matthew, our energy drinks, our distribution alliance with Hansen's and our own 180 are doing extremely well with very strong growth for the -- for our Hansen's -- in essence, the Monster brand and the other brands that are growing in the 50% plus range. So just huge sales trends for them.

As our wholesalers have gotten these brands and absorbed them into the system, we are seeing very good sales performance through our wholesalers and at the same time our own 180 brand, which is much, much smaller than the Hansen brand, have also shown very good growth off of a small base.

The other products that we have are much smaller in magnitude and generally are in more test environments. We have added water products, we are testing some spirits products in the Northeast. The key driver right now are the energy drinks and they are doing extremely well.

The 10-K can be seen here.