A-B Posts Better Q1 in U.S.

Dear Client:AB InBev posted lower-than-expected first quarter earnings this morning, mainly due to expected tough comps in Brazil and SABMiller merger costs. However, ABI's volumes in the U.S improved over last quarter. ABI's US STRs declined 0.3% in the quarter but shipments declined 1.2%, driven by lowering of distributor inventories. (The industry grew 0.7%, ABI estimates). ABI's market share dropped 0.45%, which is an improvement over last year's share performance. ABI's price/mix was up 1.3%, a slight slowdown from previous