Alternative Fuels Power Anheuser-Busch Brewries

One in Seven Anheuser-Busch Beers Will Be Brewed Using Alternative Fuels by End of 2009

ST. LOUIS, Mo. (July 30, 2008) – More than five billion 12-oz. servings of beer – or about one in seven beers brewed by Anheuser-Busch in the United States – are expected to be brewed using renewable fuel by the end of 2009*, thanks to environmental efforts at the company’s 12 U.S. breweries. The company’s breweries in Houston and Fairfield, Calif., are currently installing alternative energy technology that will be operational by year end, and as a result the company’s U.S. breweries will run on more than 15 percent renewable fuel.

The Houston brewery will use biogas from a nearby landfill as part of an alternative fuel plan that when combined with the facility’s bio-energy recovery system (BERS), is anticipated to provide more than 70 percent of the brewery’s fuel needs. The Fairfield brewery will use BERS, a technology that turns brewing wastewater into fuel, and receive electricity from solar panels being hosted on-site.

“We have a long history of protecting and preserving the environment, and these projects will move us closer to our goal of running our U.S. operations on 15 percent renewable fuel by 2010,” said Doug Muhleman, group vice president, Brewing Operations and Technology, Anheuser-Busch, Inc. “It’s part of our pledge to be better environmental stewards of the world we share.”

Anheuser-Busch has entered into an agreement with Ameresco McCarty Energy to purchase biogas from Allied Waste Services’ McCarty Road Landfill in Houston, making use of an alternative fuel source for the company’s local brewery. The biogas is a natural byproduct of waste decomposition at the landfill. Currently, some of the biogas from the McCarty Road Landfill is being captured, processed and sold to a local utility, while the excess is flared (burned without energy recovery). Ameresco plans to capture some of that unused biogas and transport it to the Anheuser-Busch brewery through a six-mile underground pipeline.

The Fairfield brewery will generate 15 percent of its fuel needs from a Bio-Energy Recovery System (BERS) that is currently under construction. BERS technology turns nutrients in brewing wastewater into renewable biogas that is used to decrease the use of natural gas. In addition, the Fairfield brewery has entered into an agreement with SunEdison to host a solar power plant on the brewery’s property. The solar energy system will generate the equivalent of approximately 3 percent of the brewery’s electricity needs and also generate Renewable Energy Certificates (RECs) for businesses or individuals to purchase to offset their use of fossil fuel energy and greenhouse gas emissions. The 1.18 megawatt (DC) photovoltaic system will be constructed during the late summer.

Once the Houston and Fairfield projects are operational, 10 of Anheuser-Busch’s 12 U.S. breweries will be producing renewable fuel. Plans are currently underway to construct the 11th BERS in Williamsburg, Va., in 2009. The company’s brewery in Fort Collins, Colo., does not operate a BERS but applies nutrient-rich brewery wastewater to nearby land to grow crops that can be turned into biofuel. Anheuser-Busch is also exploring the use of wind, solar, wood and landfill gas at several other breweries.

Anheuser-Busch’s 12 U.S. breweries also recycle or reuse more than 99 percent of the solid waste from their brewing and packaging processes – a tradition that began in the late 1800s when the company first recycled brewers’ grain into cattle feed. This amounted to nearly four billion pounds of materials such as spent grain, beechwood chips, plastic, glass cullet, cardboard and metal in 2007. In addition, employees are encouraged to look for ways to conserve energy, water and raw materials in daily operations at the breweries and learn how to conserve energy and recycle at home through environmental fairs and the company’s annual “Green Week,” a yearly tradition dating back to 1990.

“We have great employees who work hard every day to ensure our breweries are conserving water, energy and raw materials as part of our Blue Ocean initiative, an enhanced productivity plan to deliver more than $1 billion in savings through 2010,” Muhleman said. “With our Blue Ocean project, we’re examining everything we do to make sure we are brewing our beers in a way that’s efficient, considers our environmental impacts and maintains the high standards of quality our customers expect when they drink a Budweiser.”

As a member of the U.S. EPA Climate Leaders Program, Anheuser-Busch has committed to reduce total greenhouse gas emissions to 5 percent below 2005 levels by the year 2010 for all of its U.S. operations. Using EPA standards, this reduction in total greenhouse gas emissions is the equivalent of taking nearly 30,000 passenger vehicles off the road or heating more than 14,000 homes. In addition, the company has also committed to increasing the total use of renewable fuel from 8 percent to 15 percent in the same time period.

Based in St. Louis, Anheuser-Busch is the leading American brewer, holding a 48.5 percent share of U.S. beer sales. The company brews the world’s largest-selling beers, Budweiser and Bud Light. Anheuser-Busch also owns a 50 percent share in Grupo Modelo, Mexico’s leading brewer, and a 27 percent share in China brewer Tsingtao, whose namesake beer brand is the country’s best-selling premium beer. Anheuser-Busch ranked No. 1 among beverage companies in FORTUNE Magazine’s Most Admired U.S. and Global Companies lists in 2008. Anheuser-Busch is one of the largest theme park operators in the United States, is a major manufacturer of aluminum cans and one of the world’s largest recyclers of aluminum cans. For more information, visit www.anheuser-busch.com.

* “More than five billion 12-ounce servings” and “about one in seven beers brewed by Anheuser-Busch” are figures derived from taking the company’s U.S. beer production in 2007, converting it to equivalent 12-ounce servings and multiplying the figure by the estimated percentage of renewable fuel the company plans to use at its U.S. breweries in 2009.

DIAGRAM IMAGE AVAILABLE: Please contact Lynne Lotspeich at lynne.lotspeich@anheuser-busch.com for a diagram image of the landfill gas project.

CNBC PRESENTS "AMERICAN ORIGINALS: BUDWEISER"

ORIGINAL CNBC SPECIAL TAKES YOU INSIDE ANHEUSER-BUSCH FOR AN UNPARALLELED, ALL-ACCESS LOOK AT THIS FAMILY RUN BUSINESS AND ITS FIGHT FOR INDEPENDENCE

One-Hour Special Reported by CNBC's Scott Wapner to Premiere on Thursday, July 17th at 9PM & 12AM ET on CNBC

ENGLEWOOD CLIFFS, N.J., July 11, 2008-Nothing is more American than an afternoon baseball game and an ice-cold beer. Not just any beer....A Budweiser. Anheuser-Busch has been brewing Bud for more than 130 years and while other American beer companies have either been bought or merged with breweries overseas, Anheuser-Busch remains a dedicated American company.

On Thursday, July 17th at 9PM & 12AM ET, CNBC presents "American
Originals: Budweiser," an original CNBC special hosted by Scott Wapner.
CNBC, First in Business Worldwide, taps into the beer industry with unprecedented access revealing how Anheuser-Busch cultivated its Budweiser brand, how they're losing market share to microbreweries, wine and spirits and imports and facing a hostile takeover, and how the American icon plans to overcome these challenges and stay on top.

The program tells the history of the largest brewer in the United States. It takes us from the mid 19th century when German immigrant Eberhard Anheuser took over "The Bavarian Brewery" to his son-in-law Adolphus Busch's investment in pasteurization and a mechanized bottling to the creation of Budweiser, the King of Beers. The special also introduces the Anheuser-Busch brewmasters to show the extreme length this admired and desired company goes to make sure their beers maintain consistency and quality.

To win in the beer wars it is just as much about promotion as it is product and Anheuser-Busch pours hundreds of millions of dollars into U.S. advertising each year. It's the company that brought us the Clydesdales, the bud girls and Spuds MacKenzie, the original party animal and one day a year, Super Bowl Sunday, Anheuser-Bush gets the very biggest bang for its buck. Between Clydesdale appearances and sports sponsorships including Bud being the official beer sponsor of the
2008 Olympics in Beijing, it's not just a beer...it's a brand.

CNBC also takes a look at present day and the company's current CEO, August Busch IV. Anheuser-Busch now has a portfolio of more than 310 products and brews 128 different beers dominating the nation's brewing industry with nearly 50% market share. But, the company is seeing a devastating trend in the 21st century-people just aren't drinking as much beer. With U.S. beer sales flat and its biggest competitors partnering with foreign breweries, the question is will Anheuser-Busch be able to remain an American company after 150 years?

The King of Beers has learned from experience that a great product and outstanding marketing doesn't give it a lock on the number one slot.
Anheuser-Busch is always looking for the next beer breakthrough...

CNBC's "American Originals: Budweiser" will re-air on Sunday, July 20th at 10PM ET, Sunday, July 27th at 12AM ET and Monday, July 28th at 9PM & 12AM ET.

For more information including program highlights and slideshows, log
onto: insidebudweiser.cnbc.com.

"American Originals: Budweiser" is produced exclusively for CNBC by Kurtis Productions. Sharon Barrett is the executive from Kurtis Productions and Chuck Schaeffer is the executive producer from CNBC.
Jonathan Wald is Senior Vice President, Business News at CNBC.

About CNBC:

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