Business

When the beer industry was in its heady heyday, brewers saw little reason to give discounts. But in these sober times, sales have gone flat, and brewers are ready to use drastic measures to defend their place in America's coolers. Last week market leader Anheuser-Busch announced an aggressive round of price cuts in response to markdowns by its archrivals, notably Miller Brewing and Adolph Coors. Anheuser-Busch will cut the prices of its major brands, including Budweiser and Michelob, by as much as 25 cents a twelve-pack to match competitors. The company says the markdown is necessary to protect its hard-won 41% market share. But beer-industry investors fear that the move could escalate into an all-out price war in which profits could be sharply pinched. Predicts beverage-industry analyst Joseph Doyle: "Anheuser decided to join in the barroom brawl. It's going to get bloody."