More cuts likely at Anheuser-Busch InBev

ST. LOUIS, July 23 (UPI) -- Belgian beer giant InBev has targeted $500 million in operating cost cuts for its new U.S. franchise Anheuser-Busch, executive Carlos Brito said.

Anheuser-Busch had already set a target for cuts at $1 billion, USA Today reported.

The U.S. brewer agreed to a purchase offer from InBev of $52 billion on July 13. The deal is expected to close by the end of the year.

Brito said that marketing, a trademark of the company, wouldn't be cut as long as it shows results.

"The first thing in brand marketing is not to change what's working," he told the newspaper.

Anheuser-Busch spent $1.47 billion on marketing in 2007 and its marketing budget may even increase, an industry analyst said.

"I think InBev gets the whole thing that they need to step up marketing to make Bud a global brand," said Benj Steinman, editor of Beer Marketer's Insights.