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Anheuser-Busch Invests in Beer

06-24-2015

The beer business in the U.S. is growing and strengthening and will continue to do so with further support from Anheuser-Busch InBev. Anheuser-Busch announced an investment of $1.7 billion into the U.S. brewing industry, including agriculture, packaging and distributing operations. The amount will be distributed over the next several years until 2018. 

 

The investment is further proof of the high importance placed on quality beer produced by talented people, new innovation and advanced operations by Anheuser-Busch. Below is the press release in full, detailing the past and future investments into the beer community by Anheuser-Busch.  Such support will assist in the dynamic growth, innovation and advancement of beer.

 

 

 

Anheuser-Busch to Invest more than $1.5 Billion in U.S. Operations by 2018

Follows previous investment of $1 billion from 2011 to 2014 and will drive innovation, environmental advances

ST. LOUIS (June 23, 2015) – Anheuser-Busch today announced it will invest more than $1.5 billion in its U.S. brewing, agriculture, packaging and distributing operations by 2018. These investments will support growth of its brands and reinforce the beer company’s commitment to the U.S. communities where it operates through local spending and jobs. The leading beer company plans to spend an estimated $850 million on brewery and packaging expansion projects, $220 million on product innovation initiatives and $720 million in sustaining and increasing efficiency of its existing footprint.

“Our beers lead their categories because we hold quality at the center of every beer we produce and invest in our brands through talented people, new innovation and advanced operations,” said Joao Castro Neves, president of Anheuser-Busch InBev North America. “We have demonstrated commercial success from recent investments which increases opportunity for future projects. When we make investments in our local communities it is good for all stakeholders, including employees, local legislators and community leaders – they are critical to our success.”

From 2011 through 2014, Anheuser-Busch invested more than $1 billion across U.S. operations. These capital expenditures included resources to maintain state-of-the-art brewing processes, advance environmental projects, and install equipment for new products and innovations. During this time, Anheuser-Busch introduced several new products, expanding its presence in the flavored malt beverage (FMB) and cider categories and driving consumer interest in new packaging of its core brands, including:

  • Introduced the recloseable 16-ounce aluminum bottle in 2014 and 25-ounce can in 2013;
  • Expanded Bud Light Lime Lime-A-Rita family to become a 2 million barrel brand produced at three breweries; and
  • Rolled out new cider products including Stella Artois Cidre and Johnny Appleseed, gaining more cider market share.

Investments to modernize and add equipment at brewery and can plant facilities ensured the beer company could deliver these innovations. In addition, the U.S. facilities focused on continuous improvement and increasing efficiency.

“Upholding our high-quality brewing standards requires significant financial commitment for equipment, technology and skilled people,” said Pete Kraemer, vice president of Supply for Anheuser-Busch. “In addition to investing in operations, we contribute to our local communities through environmental sustainability initiatives that drive our water conservation, energy savings, and recycling efforts.”

In 2015, several projects are underway, including:

  • $150 million expansion project at the St. Louis-area Metal Container Corporation facility to increase production of the popular Bud Light aluminum bottles.
  • $45 million to build new can line and additional warehouse at Fort Collins brewery to produce the slim, 12-ounce can style.
  • $20 million in capital investments at the Los Angeles brewery to add new water efficiency and treatment capabilities.
  • $18 million in investments at the Columbus brewery, including a sustainability project that will reduce energy needs by recovering heat for use in fueling the operation.
  • $12 million invested in the company’s historic St. Louis brewery for various improvements, including projects to conserve resources and support new innovations.
  • $11 million to develop and integrate new products, including Bud Light MIXXTAILs and Oculto across multiple breweries.

Future spending plans are based on no new or increased taxes or unforeseen events that would negatively impact Anheuser-Busch’s business. The expenditures are consistent with Anheuser-Busch InBev’s 2015 net capital expenditures guidance.

 

About Anheuser-Busch

For more than 160 years, Anheuser-Busch and its world-class brewmasters have carried on a legacy of brewing America’s most-popular beers. Starting with the finest ingredients sourced from Anheuser-Busch’s family of growers, every batch is crafted using the same exacting standards and time-honored traditions passed down through generations of proud Anheuser-Busch brewmasters and employees. Best known for its fine American-style lagers, Budweiser and Bud Light, the company’s beers lead numerous beer segments and combined hold 46.4 percent share of the U.S. beer market. Budweiser and Bud Light Lime Lime-A-Rita were named Brands of the Year for the Beer and the Spirits, Malt Beverages and Wine categories, respectively, by Ace Metrix® in 2014. Anheuser-Busch is the U.S. arm of Anheuser-Busch InBev and operates 16 local breweries, 17 distributorships and 23 agricultural and packaging facilities across the United States, representing a capital investment of more than $15.9 billion. Its flagship brewery remains in St. Louis, Mo., and is among the global company’s largest and most technologically capable breweries. Visitor and special beermaster tours are available at its St. Louis and five other Anheuser-Busch breweries. For more information, visit www.anheuser-busch.com.

 

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BrewBround Session Notes

06-12-2015

 

 

In  #TBT fashion, we are spending this Thursday reviewing insights gained, trends examined and craft beer celebrated at last week’s Brewbound Session in Chicago. The guest list was impressive and the beer tasted delicious while the presentations and discussions delved into the development of craft beer, the current state of affairs and upcoming trends within the industry.

 

The much debated and feared issue of the craft beer bubble popped up throughout the day in various ways. The possibility of oversaturation is a common worry and breweries discussed ways to continue growth, maintain a steady level of success or break into such a fast-paced market as a new brewery. Growing the market share, overall, for beer was a popular strategy that many agreed with, including Andy Goeler from Anheuser-Busch, who referenced the increased popularity of table wines and whiskey potentially cutting into beer market share and the need to focus on increasing beer’s share overall. Baking a larger pie rather than scrapping over the slices showed the renowned communal attitude of the beer community at large.

 

The sheer momentum of the IPA category also came into play. With over 900 different IPAs on the market the question is what makes an IPA stand out at this point? Many breweries are sorting through that question individually, whether through recreating classics, experimenting with hop variants or abandoning the IPA train entirely in search of the next niche to be filled in beer. Whoever is able to find and fill the niche first can be sure to grab hold of a unique spot in beer, leading to increased sales.

 

In more than one panel discussion presenters grappled with the power of local, and now the rise of hyperlocal, breweries. Both a blessing and a challenge, the move towards local patronage has sprung new discussions for both breweries working towards regional distribution and breweries that are bunkering down in their supportive communities. The numerous breweries establishing themselves in neighborhoods, both in Beer City USA and throughout the country, was seen as a blessing by some, notably Alan Newman. The founder of Magic Hat and now of Traveler Beer praised local brew spots for their ability to introduce many to the beer scene by their accessibility as a local watering hole. This local beer experience can create excitement that induces the consumer to continue their beer journey and explore other beers.

 

 

Another strategy to cut through any market saturation is the power of the story. For a brand to be viable it requires a face, place and story in order to connect with their drinkers. In a world brimming with diverse and delicious beer options the “why” behind the brew can become just as important as the “what” of the brew. Breweries are now storytellers and are using marketing, specifically digital media platforms, to share that story directly with their fans while also honing in on their unique “it” factor that makes a truly successful brewery sticky, leading to loyal beer enthusiasts.

 

Mike Kaiser, founder of Good Beer Hunting, awed the audience with his presentation on building beer brands through storytelling. The need for a brewery to shape their story for themselves, rather than being steered by the perceived wants of the consumer, highlighted the need for a brewery to go beyond listing off their likes (bikes, water, bluegrass) and delve into their culture as a company. Dale Katechis, founder of Oskar Blues Brewery, underscored the importance of culture and its requirement to become from an organic source, primarily individual already committed to the company.

 

The value and high esteem held for brewery employees was clear throughout the presentations. Submissions for new brewery recipes, radical marketing ploys and the intangible “it” factor of each brewery came from the individuals who spent their days committed to creating the beer From marketing managers and brewers to founders of world-class breweries, all acknowledged the need to focus within on their company culture and the potential held by individuals working with them for continued success.

 

The single strain of thought prevalent throughout the day of conversation and presentations boiled down to the beer commumity’s determination to remain a place of artful creation, collaboration and cultivation. Brewbound Chicago Session showed that beer has no plans to divert from this method for growth. For Brewbound's own recap of the Chicago conference they've created a video highlighting the day. 

 

 

 

June Beer Releases

06-03-2015

June heralds in the start of summer  throughout the West Side Beer locations with returning and brand new beer releases. Sip on and celebrate summer! 

 

Perrin Brewing Co. VPA 

A returning limited specialty from Perrin Brewing Co. is now available for summer. Brewed in support of the Finish the Mission Veterans Relief Fund, Veteran's Pale Ale is a refreshing pale ale with a heady hop aroma, clean malt body and crisp finish. 5% ABV 40 IBUs. 

 

 

Arcadia Ales Cheap Date 

The newest year-round release from Arcadia Ales is set to last all day (or date). This session ale showcases a citrus hop aroma with a golden malt body and a crisp finish. 4.5% ABV 30 IBUs. Available in Grand Rapids and Lansing. 

 
 

Stone Brewing Co. Specialties 

 
Returning specialties from Stone Brewing Co. are slated to be released intermittently throughout June. First, is the returning seasonal specialty, Saison (6% ABV 45 IBUs) a farmhouse ale with a citric and herbal character. Ruin10 IPA (10.8% ABV 110 IBUs) will be back in all its hoppy glory, as well.Finally, Enjoy By 7/4 will drop in Grand Rapids and Lansing for a month's worth of enjoyment
 
 

Right Brain Brewery Strawberry Fields

 
A cream ale brewed with fresh strawberries, is back on tap.This limited seasonal specialty showcase a bready malt character with a smooth mouthfeel that combines with bright fruit flavor to create an overall flavor profile akin to strawberry shortcake. 5.5% ABV 
 
To find out about upcoming releases on a monthly basis be sure to sign up for our craft beer newsletter! 
 
 
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