Rolling Rock by BUD?

[ORIGLS6]

Anheuser-Busch might add Rolling Rock to stable
Friday, May 5, 2006

Anheuser-Busch Cos., the world's largest brewer, may be close to buying Latrobe Brewing Co., maker of Rolling Rock beer, according to a Wall Street securities analyst.
A report on Anheuser-Busch's interest in Latrobe Brewing by analyst Caroline Levy of UBS Securities in New York comes on top of earlier speculation that Latrobe Brewing's parent company, InBev NV, has been shopping the Westmoreland County brewery, based on InBev's decision to focus sales and marketing resources on its high-profit specialty import brands.
InBev, the world's third-biggest brewer, said in March it was "examining opportunities" for Rolling Rock and its Latrobe Brewing plant, without being more specific.
As reported by the Pittsburgh Tribune-Review at that time, Harry Schumacher, publisher of Beer Business Daily in San Antonio, said that St. Louis-based Anheuser-Busch could be interested in the "quirky" Rolling Rock brand.

Dave Peacock, Anheuser-Busch's vice president of administration, would not comment on the reports.
About 850,000 barrels of Rolling Rock were produced last year, below the Latrobe plant's capacity of 1.3 million barrels, said Brenda Williams, spokeswoman for InBev in Norwalk, Conn.
Anheuser-Busch's interest in adding Rolling Rock to its product mix stems from the brewer's efforts to attract new drinkers with craft-style beers, Levy wrote in her research report Tuesday. Rolling Rock would be attractive to Anheuser-Busch because its products carry prices 16 percent higher than Anheuser-Busch's Budweiser and Bud Light brands, her report said.
"Despite being in the sweet spot of the beer industry (premium domestic craft) Rolling Rock volumes have lagged imports and crafts," Levy said. "We believe with renewed marketing support, the brand could be rejuvenated."
Uncertainty over the fate of the brewery concerns workers there and the community in general, union and political officials said Thursday.
"Of course, it's of great concern because we don't know what's going to happen," said George Sharkey, business agent with Local 144B of the International Union of Electrical Workers/Communications Workers of America.
"We've heard rumors, but so far, there is nothing definite about it," Sharkey said.
The union, which represents about 120 bottlers at Latrobe Brewing, including about 40 currently on layoff, last year negotiated a new six-year contract that would carry over to any new owner of the company, he said.
"We're keeping our fingers crossed, and hoping and praying that whoever buys it keeps it here," said Latrobe Mayor Tom Marflak.
Marflak said in 2001 the company unveiled a $15 million high-tech bottle packaging system, which marked the largest single capital investment in the company's history.
In addition to its flagship Rolling Rock beer packaged in a green bottle, Latrobe Brewing also produces Rock Green Light, a low-carbohydrate beer introduced three years ago.
Rolling Rock's roots go back to 1933 when Latrobe Brewing's plant in Latrobe was reopened after the repeal of Prohibition.
It came to be owned by InBev in 2004 when a new company was formed in an alliance between SAO Belgium's Interbrew and Brazil's AmBev. The brewery had been part of the U.S.-unit of Interbrew's Canada-based LaBatt subsidiary since 1987.