Brussels, April 28 - Anheuser-Busch InBev's chief executive said on Tuesday that its merger to create the world's largest brewer had produced a number of positive surprises even in the face of a downturn.
The company, formed five months ago, has already raised its target for merger savings to $2.25 billion spread over three years from a $1.5 billion goal initially envisaged.
Chief Executive Carlos Brito said new key brand Budweiser had gained market share in the United States since the launch of Bud Lite Lime.
"A lot of things that we had in our business case are making us very happy," Brito told reporters after the company's annual shareholder meeting.
"Also our exposure to the U.S. market was always something that would be great to have and now it's proven that, especially in tough times it's a great market to be exposed to because it's a very resilient market," he continued.
Some argue the $52 billion price tag agreed by InBev to take over Anheuser-Busch in July 2008 was too high given the market's subsequent plunge.
Brito insisted AB InBev was committed to deleveraging quickly and still had five to six candidate businesses for sale to raise $7 billion.
Kohlberg Kravis Roberts & Co confirmed on Tuesday it was in exclusive talks to buy AB InBev's Oriental Brewery in South Korea.
Brito declined to confirm that the Korean business was even for sale.
"As we speak we are open to bidders, but we are not in a position to comment ... We have had some unsolicited approaches ... People could figure out which assets were on the list."
Anheuser Busch's theme parks and packaging business are often cited as would-be divestments.
Tom Pirko, president of Bevmark LLC, a California-based beverage industry consulting firm, said AB InBev might ultimately be forced to sell substantial parts of its business at distressed prices "simply to keep afloat".
Others, such as Harry Schuhmacher, editor and publisher of Beer Business Daily, noted the beer industry was outperforming other sectors in the downturn and said AB InBev would be in a "fantastic position" once it had paid off its debt.
COST DRIVE UNDER FIRE
In the five months since it formed, AB InBev has come in for criticism.
Some 1,400 jobs - 6 percent of the U.S. workforce - have been cut, notably at AB's St Louis base.
Belgium's economy minister has asked the competition authority to investigate whether AB InBev has abused its dominant position in paying suppliers after 120 days, from 30 days before.
Brito said any new combination faced tough initial times with the elimination of duplication and believed that he had been straightforward in meetings with staff.
The companies were also not strangers to each other given a series of partnerships, including an agreement for AB to distribute InBev's import beers in the United States from 2006.
"We knew a couple of things needed to be fine-tuned ... But it's not like two foreign companies getting together for the first time ... We had that plus on our side," Brito said.
Despite an emphasis on cost-cutting, Anheuser-Busch said its spending on sports properties would be slightly higher this year as it takes advantage of opportunities in the sports industry hurt by the recession.