While net sales were in line with our estimate in 2Q 09, operating and adjusted net margin was below our expectations, reflecting higher-than-anticipated Selling, General & Administrative (SG&A) and tax expenses during the quarter. Going forward, we expect robust growth in Brazil beer volumes to drive full-year revenue growth over the next two years. In light of a positive outlook for the Brazilian economy, although the target price does not support a HOLD, we reiterate the preferred stock a HOLD. We will reassess our target price and rating in our 3Q 09 update report. Given the current price and our anticipation of a negative currency impact on the ADR over our 6-24 months investment horizon, we reiterate our SELL rating for the ADR. We will reassess our target price and rating in our 3Q 09 update report.

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