Anheuser-Busch's newest spirit is 1,300 years old


Anheuser-Busch (NYSE:BUD), obviously looking at industry stats that show beer sales in the U.S. declining (-2.2% in '05) as consumers switch to wine (+5.2%) and distilled liquor (+2.9%), has partnered with the Ku Soju Inc. of Laguna Hills, Ca., to distribute Ku Soju, a 48-proof Korean spirit. Ku Soju, distilled by Doosan of Seoul, South Korea, is made from sweet potatoes, which produces a vodka-like product with a low enough alcohol content that it can be sold by most vendors who carry a beer/wine license.

This is not Anheuser-Busch's first foray into liquor. For over a year it has been selling two other spirits, Jekyll & Hyde, through its Long Tail Libations, Inc. subsidiary. J&H are two spirits packaged together in complementary bottles. J tastes of berries, while K is flavored with anise.

Since Ku Soju is lower in alcohol, the brewer could market it a both as a lower-calorie alternative and a more socially responsible drink for those who must drive home.

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