AB InBev Plans to Reduce Water Usage

March 16th, 2010

There is a lot of talk out there about going green and different ways to do it, whether that is installing a solar array or bicycling to work. One of the less talked about things is water usage, which can be just as important. This is especially important in the brewing process, which is very water intensive, and its more than just the water in your beer. It is also the water used for cleaning, cooling, and steam production. Given the need to reduce water usage, Anheuser-Busch InBev announced yesterday its plans to reduce water usage by 30% by 2012.

By meeting this goal, the company says it could fill 25,000 Olympic-sized swimming pools with saved water. Based on American Water Works Association statistics, that’s also enough to meet one year’s indoor water needs for more than half a million U.S. residents living in typical single-family homes.

Although they are planning on using some pretty low-tech methods in most of their breweries, it has already started to show results in places like Cartersville, GA. In the recent three year drought experienced in the south, AB InBev drastically reduced water usage by recycling cooling and cleaning water and has already cut usage below their 2012 goal. The full article is over at the New York Times.

What really got to me is when the article mentioned 1.1 billion people still lack access to clean drinking water. This is often viewed as a shortage problem, though it has equally as much to do with distribution, especially in rural areas. Given that staggering statistic, next time to sit down for a frothy cool beverage, don’t take it for granted and be thankful that we are able to drink fine craft beers.

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Overseas Beer Problems Head Home

January 21st, 2010

I speculated that the recent problems we’d seen overseas in Europe with Anheuser-Busch InBev would eventually lead to some word about the status of American’s beer economy. And as expected, the news isn’t exactly the best, with American beer sales falling just over 2%, the highest drop since the 1950s. Eesh.

The decline, the industry’s first since 2003, raises demands for industry leaders Anheuser-Busch InBev NV and MillerCoors LLC to come up with better advertising and to rethink recent price increases, said retailers and analysts.

But they must tread carefully, balancing price moves against a need to drive profits in the wake of the mergers that created the two.

The two giants increased prices by about 5% last year, fresh off InBev NV’s acquisition of Anheuser-Busch Cos. and the move by SABMiller PLC and Molson Coors Brewing Co. to combine U.S. operations. Those increases, along with a weak job market and lackluster advertising, contributed to the sales drop, industry analysts said.

Again, it’s kind of hard to say how the whole drop in sales is an effect of the rise in microbreweries and their sales, or whether microbreweries are also seeing a bit of decline. However, one Colorado-based businessman saw an increase in sales due to craft beers.

“Domestic beer brands need to reinvent themselves and get that appeal back,” said Ron Vaughn, co-owner of Argonaut Wine & Liquor, a Denver liquor superstore. He said his beer sales rose by 2% last year, helped by strong sales of “craft” brews popular in Colorado, but mass-market brands such as Miller Lite “have taken a hit.”

Anheuser and MillerCoors, which control nearly 80% of U.S. beer sales, posted strong profit gains in the first nine months of 2009, buoyed by higher prices and cost cuts that followed the 2008 mergers.

So probably what this all means is that we’ll be seeing more crap like Winter’s Bourbon Cask Ale from Michelob in craft beer sheep’s clothing from now on. Craft beer drinkers, be on the lookout. We’ll keep an eye on this trend as it develops further.

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Beer Strikes to End

January 21st, 2010

The strikes involving Anheuser-Busch InBev that have brought beer products to a halt in Europe appear to be over as a deal has been cut that will end the blockades.

Under the agreement, the unions will lift the blockades by the afternoon of Jan. 22, and the company will pay workers for Tuesday and Wednesday, when AB InBev temporarily laid off the workers.

Hopefully some sort of agreement can be made that will make sure so many people do not lose their jobs. We won’t count on it, though.

Wall Street JournalDeal Reached to End Beer Blockades

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Fallout Continues from AB InBev Job Cuts

January 12th, 2010

When Anheuser-Busch InBev (AB InBev) decided to cut jobs last week, the outcry was clearly going to be heard loud and clear around Europe. And now, the announcement that up to 800 jobs would be lost is starting to not only have a real impact the workers, but also regular overseas beer drinkers

Supermarkets in Belgium are running out of beer produced by Anheuser-Busch InBev (AB InBev), the world’s largest brewer, national media reported on Tuesday.

AB InBev employees are striking against job cuts and are picketing two brewing plants in Louvain and Jupille-sur-Meuse, Belgium.

The breweries have not been operating at full capacity for six days and can no longer supply beer to supermarkets.

I have to hand it to the workers for making an impact that is being felt not just by the suits up in corporate, but by the everyday drinker. It will be interesting to see what comes of all this. We’ll continue tracking the story as it unfolds.

RIA Novosti — Belgian stores run low on beer as brewery strike hits

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AB InBev Layoffs Worse Than Expected. Much Worse.

January 8th, 2010

Yesterday I reported that AB InBev in Belgium was set to cut around 250 jobs in Belgium. Today, we wish that news had been all the news to report.

Anheuser-Busch InBev, the world’s largest brewer, is to cut 800 jobs across western Europe, 10% of its 8,000 workforce in the region.

The firm said the move was a response to falling beer sales, with the layoffs spread across Belgium, Germany, the UK, the Netherlands and Luxembourg.

The news trigged protests at the firm’s brewery in the Belgium town of Leuven, where it also has its headquarters.

Anheuser-Busch InBev’s brands include Becks, Budweiser and Stella Artois.

Definitely not the most cheery news on a Friday. Again, we have to wonder how the American beer climate is holding up. Will we see the same drop in sales, thus leading to firings in America? Only time will tell, but we’ll all hope for the best.

BBC News — Beer Giant Anheuser-Busch InBev Cutting European Jobs

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AB InBev to Cut 263 Jobs in Belgium

January 7th, 2010

Though certainly not a microbrewery by any means, AB In-Bev in Belgium has decided to cut 263 jobs due to the lack of beer sales.

The average Belgian drank about 20% less beer in 2008 than in 2000, and volumes sold fell another 1.7% in the first nine months of 2009, the brewer said.

“Beer has traditionally proved resistant to weak economic conditions, but our industry is not immune to the general economic climate,” the company said in its statement.

Hopefully this is just isolated to Europe and has no effect on the US beer climate, but you have to wonder how long breweries in America can go without feeling some of the strains of the economy. The big brewers might be already feeling the competition from microbreweries in terms of sales but if you’re an average beer drinker, can your spring for an $11 six-pack of great beer, or is it better to save a few bucks and go with Rolling Rock?

The Wall Street Journal — AB InBev: May Cut 263 Jobs in Belgium as Sales Suffer

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