Brewer Anheuser-Busch introduces a Caffeinated flavored beer

NEW YORK (Reuters) - Brewer Anheuser-Busch says it will introduce a caffeinated, sweet-flavored beer for twentysomething club goers to compete with the flavored rums and vodkas gaining ground on the dance floor. The new beer B(E) -- read as "B to the E power" -- will roll out in several phases starting in November. "Distilled spirits are definitely in the background of this decision," Bob Lachky, vice president of brand management at Anheuser-Busch, said during a conference call Monday. "Sweeter flavors have definitely made an impact on 21- to 35-year-olds. ... It's a bigger part of the alcohol-drinking spectrum." B(E) infuses beer with caffeine, guarana and ginseng, along with berry aromas for a sweeter, yet more tart taste at 6.6 percent alcohol by volume, said company brewmaster Nathaniel Davis. Anheuser-Busch designed the new brew for 21- to 27-year-old drinkers who seek novel beverages and switch drinks more frequently according to mood and occasion, the company said. "It's indicative of how seriously Anheuser-Busch is taking this challenge from the liquor folks ... who are growing faster than beer," said Eric Shepard, executive editor of industry newsletter Beer Marketer's Insights, citing the popularity of flavored spirits and energy drinks, such as Red Bull. B(E) will be priced slightly higher than the company's flagship Budweiser beer and packaged in slimmer 10-ounce cans. "The majority of beer drinkers, and people we are trying to approach with this product, are not terribly concerned with carbs all the time," said Lachky. Anheuser-Busch (BUD: Research, Estimates) shares closed down Monday 0.5 percent at $50.20 on the New York Stock Exchange.