ST. LOUIS -- Anheuser-Busch will invest close to $500 million in 2017 and $2 billion through 2020 in growing its U.S. brewing and distribution capabilities. The company said the plans are among the largest ever capital-investment programs in U.S. brewing history.
Announced May 15, the 2017 investments will include:
- Over $200 million for brewery and distribution projects.
- $180 million for product packaging and innovation initiatives.
- $58 million to improve and increase sustainability at A-B facilities.
The announcement is the next phase in a period of extensive, ongoing investment by Anheuser-Busch, with investments totaling $4.5 billion from 2011 to 2020, the company said. The new capital-expenditure program will expand Anheuser-Busch’s U.S. operations, including through new collaborations with companies like Starbucks' Teavana, for which A-B will produce four flavors of ready-to-drink packaged iced teas. The drinks will initially be tested in New Hampshire, New York, Vermont and Missouri.
“Since Anheuser-Busch was founded 165 years ago, our company has been deeply rooted in America’s economic and cultural life. Our love of great beer and bringing people together is part of the American story,” said João Castro Neves, president and CEO of Anheuser-Busch. “We are making these investments in our business, and the communities where we live and work, for the next 165 years.”
“We are focusing on investments which empower our employees to do what they do best—brewing the best beer,” said Dave Taylor, vice president of supply for Anheuser-Busch. “Ninety-eight percent of the beer we sell in America is proudly made here at our 21 breweries using the highest quality ingredients.”
Key individual investments in the new capital-expenditure program include:
- $82 million to enhance nationwide supply-chain operations and to build new, state-of-the-art distribution facilities in Los Angeles and Columbus, Ohio.
- $28 million at the Fort Collins, Colo., brewery to expand production of popular aluminum-bottle products and increase diversity of products through installation of dry-hop capabilities.
- $18 million at the Williamsburg, Va., brewery on new technology and equipment to maintain quality, and to install new labeling machines.
- $15 million to begin innovative cross-brewing capabilities at the Fairfield, Calif., brewery through an Elysian Brewing partnership, including significant updates to brewery infrastructure.
- $13 million to the St. Louis brewery, including updates to the beechwood-aging tanks and several other initiatives that allow for production capability of new brands, as well as investments to increase sustainability.
- $12 million for the Cartersville, Ga., brewery to install a new multipacker to diversify packaging capabilities, as well as new programming and metering devices to increase energy efficiency.
- $11 million to expand aluminum-bottling capabilities at the Jacksonville, Fla., brewery, as well as upgrades to improve energy efficiency.
- $11 million to begin innovative cross-brewing capabilities at the Merrimack, N.H., brewery alongside craft partners.
- $10 million in continued investments at the Los Angeles brewery to add water efficiency and treatment capabilities.
- $10 million to the Baldwinsville, N.Y., brewery to increase production of nonalcohol product offerings, mainly Teavana, and to install a new multipacker.
- $8 million to the Houston brewery to begin brewing the popular Michelob Ultra Lime Cactus product and to expand aluminum bottle production.
- $7 million to the Columbus, Ohio, brewery to support various improvements, including projects to conserve resources and to develop and integrate new products.
St. Louis-based Anheuser-Busch, brewer of Budweiser and Bud Light, is the U.S. arm of Anheuser-Busch InBev. It operates 21 breweries, 21 distributorships and 23 agricultural and packaging facilities across the United States.
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