InBev's commitment to St. Louis and the A-B heritage
By Carlos Brito
06/17/2008
On June 11, we sent a proposal to the Anheuser-Busch board of directors outlining our vision for a friendly combination between our two companies: a merger that would form the world's leading brewer.
The main points of this proposal were:
— A combination to create one of the world's five largest consumer-goods companies.
— A stronger, more competitive global company to benefit all stakeholders.
— The heritage of Anheuser-Busch to be evoked in the name of the new combined company.
— Budweiser to be expanded globally.
— St. Louis to be the North American headquarters and global home of the flagship Budweiser brand.
— Full support for Anheuser-Busch's wholesalers and the three-tier distribution system.
— All U.S. breweries to remain open.
— Strong commitment to communities where Anheuser-Busch operates.
— Members of Anheuser-Busch management to be retained at all levels of seniority.
Since then, we have heard the concerns voiced by a number of different constituents, especially those in St. Louis. Let me try to address those concerns:
Headquarters for the North American region of the new company would be in St. Louis. It also would be the decision-making hub for the global flagship brand Budweiser.
The brewery on Pestalozzi Street would remain open. We are committed to not closing any of the company's 12 U.S. breweries. The visitor center with daily tours would continue to be a central part of visiting St. Louis.
Grant's Farm and the Clydesdales, are all-important elements of the heritage of Budweiser, Anheuser-Busch and the city of St. Louis, and those, of course, would be retained. The combined company would operate under a name that evokes the Anheuser-Busch tradition.
We would maintain a St. Louis civic presence and support of certain institutions, as we believe this is a key part of what Anheuser-Busch, as a corporate citizen, and Budweiser, as a brand, are about.
With respect to Budweiser, InBev has been brewing Budweiser in Canada for decades. We know the beer, the brewing tradition and the recipe very well. The Budweiser beer to which consumers are so loyal would not change.
InBev's history is similar to that of Anheuser-Busch. Our company's roots date back to Europe in the year 1366. We are the makers of many well-known beers such as Stella Artois, Beck's, Bass, Hoegaarden and Leffe, among others. We have been in this business for generations, much like Anheuser-Busch, and we intend to continue to be focused on building the best beer company in a better world.
We want to combine with Anheuser-Busch because it is our belief that, together, we can do more. In today's marketplace, a stronger, more global company has more resources to better face competition and greater chances to succeed. With the combination of SABMiller and Molson Coors in the United States nearing completion, competition only is going to get more intense for all of us. A stronger, growing business is more likely to safeguard jobs and create new ones. In the last three years, InBev has increased its revenues by an average of 7 percent every year and has created 12,000 new full-time jobs as business has expanded.
We believe our two companies have more similarities than differences. InBev has been brewing great beers for more than 600 years. Anheuser-Busch traces its origins to European immigrants who started brewing beer in the United States more than 150 years ago.
Put simply, this combination is about taking the great brewing traditions of both companies and creating a stronger one, one that can thrive in the global economy in which we all must operate. It's about taking the great brand Budweiser and making sure it is getting as big a slice of the global market as it deserves. It is about creating a brewing powerhouse that would create new opportunities for employees in St. Louis and across the country.
Most of all, it is about making sure beer-lovers in America and across the globe can enjoy a cold Bud. Together, we can make this happen.
Carlos Brito is the chief executive of InBev. InBev is a brewing corporation controlled by Stichting InBev, a foundation based in The Netherlands representing an important part of the interests of the Belgian founding families of InBev and the interests of the Brazilian families who previously were shareholders of AmBev.
Website for Anheuser-Busch offer:
www.globalbeerleader.com