(St. Louis, MO) – AB InBev released 4th quarter and FY11 results on Thursday. Below are excerpts from the press release that are applicable to the U.S. market.

Operating results:

North American total volumes decreased 3.1% in FY11 and 4.5% in 4Q11.

In the United States, our shipment volumes declined 3.2% in FY11 and 5.0% in 4Q11. Domestic US beer selling-day adjusted sales-to-retailers (STRs) decreased 3.0% in FY11 and 4.1% in 4Q11. As anticipated, volumes in 4Q11 were negatively impacted by the timing of our October 2011 price increase which led to soft volumes in the first half of that month.

We estimate that the industry declined by approximately 1.8% in FY11 with our market share declining by approximately 60 bp. We gained share with Michelob Ultra and our high end brands, led by Stella Artois and Shock Top, maintained share with Bud Light and, as anticipated, saw approximately 40 bp of market share loss in sub-premium following our
decision to start to close the price gap between our sub-premium and premium brands in FY10. We estimate that Budweiser lost approximately 30 bp of market share during the year, with the rate of decline continuing to decelerate.
In fact, based on IRI data, the rate of decline has been cut by half during the year, on a rolling twelve month basis.

United States beer-only revenue per hl grew 3.1% in FY11 and 3.3% in 4Q11, reflecting the price increase in October 2011. We estimate brand mix improvements benefited our revenue per hl result by 26 bp in FY11.

Focus Brands and Innovation:

Budweiser: In the United States, IRI data shows that the rate of decline of the brand was cut by half during 2011 on a twelve month rolling basis, helped by a new global visual identity, with refreshed can and secondary packaging featuring the iconic Budweiser ‘bowtie’, and a marketing campaign (“Grab Some Buds”) which is resonating with young adult drinkers and stimulating reappraisal of the brand

Stella Artois: The brand grew by 24% in the United States, based on shipments to retailers, reaching a level of almost 1.3 million hls

Innovation products: Draftmark Home Draft system (for Budweiser, Shock Top and Bass), and Natty Daddy (an affordable and easy to drink light beer). In addition, in the first few weeks of 2012, we announced a number of new products including Bud Light Platinum (a 6% ABV, blue cobalt bottle line extension aimed at the party time/nightlife occasion). Although it is still too early to draw conclusions, the brand is doing well, achieving almost 90% distribution and over 1% market share in the four weeks to 19 February 2012, according to IRI syndicated data. We have also announced Select 55 eight-ounce cans and seven-ounce clear glass bottle SKUs, Shock Top Wheat IPA and Michelob Ultra Light Cider.

Management Comments:

· Continuing to invest behind our Focus Brands. This will include increasing the reach and market share of the Bud Light mega brand which achieved record brand health scores in 2011, continuing to drive reappraisal of Budweiser amongst young adults, expanding the distribution and usage occasions of Michelob Ultra and increasing our share of the high end, with a special focus on Stella Artois

· Investing in our renovation and innovation pipeline. We start 2012 with the strongest pipeline in many years in terms of liquids, packaging and experiential platforms. We will implement these initiatives throughout the year while continuing to expand the pipeline for the future

· Improving revenue management. We will continue to focus on our revenue per hectoliter performance, supported by an improving brand mix, strong innovations, pack price initiatives and optimization of our promotional activities

· Driving excellence in Sales and Route to Market execution. We will continue to work closely with our wholesaler partners to improve our integrated planning, drive operating efficiencies and, through the sharing of best practices,