Brews At Bargain Prices

Ah, summertime, when even financial writers' thoughts turn to baseball, the beach, barbecues, and, most swiftly, to beer. This year, with a bear market in beer prices, it's getting harder than ever to resist. On sale at a supermarket near me: 12-packs of Anheuser-Busch (BUD ) Natural Light and Natural Ice, just $4.99.

Price-cutting is only the most obvious symptom afflicting the world's brewers. Younger drinkers more often are choosing wine or liquor over beer. Per capita U.S. beer consumption in 2004 fell to 21.6 gallons, from 22 gallons in 1996, according to New York consulting firm Beverage Marketing. Amid this, even the stock of stalwart Anheuser-Busch is near its 2002 lows. Shares of the newest global combine, Molson Coors Brewing (TAP ), which touched 76 on Feb. 9 as the Canadian and Colorado brewing dynasties merged, now sit near 63 after a poor first quarter. One reason: the National Hockey League's lost season, which drained demand in Canada. Angry at not learning of weak sales before the merger vote, some investors are suing, and the Securities & Exchange Commission wants to know what happened. Molson Coors says it did nothing wrong and is cooperating.