Anheuser-Busch Companies, Inc. (ABC) is the holding company of Anheuser-Busch, Incorporated (ABI), a beer brewer. The Company is also the parent corporation to a number of subsidiaries that conduct various other business operations. ABC's operations comprise four segments: domestic beer, international beer, packaging, and entertainment, which contributed 75%, 7%, 10% and 8%, respectively, of the ABC's net sales, during the year ended December 31, 2007. Approximately 93% of the ABC's net sales are generated in the United States. Worldwide sales of the Company's beer brands aggregated in 2007, which comprises domestic and international volume. International volume represents Anheuser-Busch brands produced overseas by company-owned breweries, under license and contract brewing agreements, plus exports from the Company's United States breweries.
Anheuser-Busch's best known beers include brands such as Budweiser, Busch (originally known as Busch Bavarian Beer) and Michelob families, Bud Light, and Natural Light. The company also produces a number of smaller-volume and specialty beers, nonalcoholic brews, malt liquors (King Cobra and the Hurricane family), and flavored malt beverages (e.g. the Bacardi Silver family and Tequiza).
Adolphus Busch was the first U.S. brewer to use pasteurization to keep beer fresh, the first to use artificial refrigeration and refrigerated railroad cars and the first to bottle beer extensively. In 1876, Busch introduced America’s first national beer brand: Budweiser. In 1877, Busch introduced the company's first cola: King Cola.
Anheuser-Busch became the largest brewer in the United States in 1957. It today produces about 11 billion bottles of beer a year.
Anheuser-Busch International, Inc. was established in 1981, and is responsible for the company's foreign beer operations and equity investments.
Today, Anheuser-Busch operates 12 breweries and several theme parks in the United States and has operations around the world.
On June 12, 2008, Belgian-Brazilian brewing company InBev announced that it had agreed to a US$46 billion offer for the company. If this had been successful, it would have joined two of the world's four largest brewing companies (based on revenue) and create a company that brews three of the top beers in the world, namely Bud Light, Budweiser, and Skol. InBev also stated that the merger would not result in any U.S. brewery closures and they would also attempt to keep on management and board members from both companies. On June 25, 2008, Anheuser-Busch officially announced that they would reject InBev's offer and provide a restructuring of company to maintain shareholders and United States World Headquarters in St. Louis. On July 1, 2008, InBev urged Anheuser-Busch shareholders to vote in favor of the buyout as InBev felt the offer of $65 per share should be considered a reasonable offer in view of the falling stock market. The company had previously filed suit in Delaware, after the rejection of their offer, to ensure that the stockholders could oust Anheuser-Busch's 13 board members. On July 7, 2008, Anheuser-Busch filed a lawsuit against InBev to stop them from soliciting support of shareholders, stating that the company's offer is an illegal scheme. InBev is also accused of concealing that they do business in Cuba, which might have created additional obstacles to their efforts to operate in the United States.
On July 13, 2008, Anheuser-Busch and InBev said they have agreed to a deal, pending shareholder and regulatory approval, for InBev to purchase the American icon at $70 per share, creating a new company to be named Anheuser-Busch InBev. Anheuser-Busch would get two seats on the combined board of directors. The all-cash agreement, almost $52 billion in total equity, would create the world’s largest brewer, uniting the maker of Budweiser and Michelob with the producer of Stella Artois, Hoegaarden, Leffe and Beck's, Bass, Labatt and Brahma. The two companies would have yearly sales of more than $36.4 billion, surpassing the current No. 1 brewer, London-based SABMiller.
The company keeps a rotation of its famous Budweiser Clydesdales at its headquarters, and visitors to the brewery can observe the Clydesdales in their exercise field and see their places in the carriage house. The bulk of the herd is kept at the company farm in St. Louis County. The farm, known to many a St. Louisan as Grant's Farm (having been owned by former President Ulysses S. Grant at one time), is also home to a varied menagerie of animals. The current manager of the famous Clydesdales is Benjamin Underwood.
The brewery was designated a U.S. National Historic Landmark in 1966. The landmarked area includes 189 structures spread over , including many red brick Romanesque ones "with square crenelated towers and elaborate details." The Brew House, built in 1891-1892, is particularly notable for its "multi-storied hop chandelier, intricate iron-work, and utilization of natural light".
Overseas, Anheuser-Busch operates 15 breweries - 14 in China and one in the United Kingdom; In China, A-B operates Budweiser Wuhan International Brewing Company, Ltd. and Harbin Brewery Group Ltd which A-B fully acquired in 2004. Chinese production of AB products in China started, in Wuhan, after their purchase of a local brewery in 1997. In the United Kingdom, the Budweiser Stag Brewing Company Ltd. produces and packages Budweiser.
Budweiser is also locally brewed in eight countries outside the United States. They are: Argentina, Canada, Ireland, Italy, Japan, Russia, South Korea and Spain.
Anheuser-Busch strategic equity investments include:
In addition to brewing its own beer, Anheuser-Busch also is responsible for the importation and distribution of the following international beers in the U.S.:
Specialty beverage distribution deals
All of these brands can be verified by visiting Anheuser-Busch.com and clicking on the "beer brands" tab.
The company is known in the United States for its huge advertising presence, including a sports marketing division which creates advertising material for the Super Bowl and many other sporting events. Famous Busch television campaigns have included:
Recently, Miller Brewing began a series of commercials which featured "referees" calling "penalties" on people for drinking Bud Light, and they would then take the Bud Light and replace it with Miller. Anheuser-Busch responded with their own "referees" commercials in which referees were taking people's Budweiser and keeping it for themselves.
The company has long been known for its jingles. A few of them are:
Anheuser-Busch has received numerous awards for its efforts to reduce its impact on the environment. In 1995 Anheuser-Busch's Baldwinsville brewery won an award for pollution prevention from the New York Governor for its use of a "comprehensive, energy-producing pollution-prevention system - bioenergy recovery - to treat wastewater from the brewing process." The brewery also reduced solid waste by nearly 70 percent from 1990 to 1994. In addition, the Baldwinsville brewery found markets for previous "waste" materials used in the fermentation of Anheuser-Busch beers. The Anheuser-Busch Recycling Corp. recycled more than 27 billion cans in 2006, a number far greater than what was used in its own packaging. Similarly, Anheuser-Busch has set short-term goals to reduce energy consumption 5% and increasing use of renewable fuel from 8 to 15% by 2010. Along with these goals, Anheuser-Busch has succeeded in cutting down its water use by 3 % since 2002.Anheuser-Busch is investigating several other renewable energy possibilities such as biomass, wind, solar, and landfill gas as a fuel to reduce the company's environmental impact. The Corporation has also made commitments to decrease its greenhouse gas emissions "by 5 percent from its 2005 baseline by 2010 as part of its membership in the U.S. Environmental Protection Agency's Climate Leaders program."
The brewery also operates an environmental outreach program to encourage recycling, energy conservation, and habitat preservation, as well as to prevent littering and water pollution. For past 18 years Anheuser-Busch employees have participated in "Green Week", which focuses on environmental conservation education for employees and their families.
A chronology of past corporate leaders (President and CEO) is as follows:
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