Anheuser-Busch Companies

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Anheuser-Busch Companies, (NYSE:BUD)

Anheuser-Busch Companies, Inc., organized in 1979, is the holding company of Anheuser-Busch, Incorporated (ABI), a brewer of beer. The Company is also the parent corporation to a number of subsidiaries that conduct various other business operations. The Company's operations are comprised of the following business segments: domestic beer, international beer, packaging, entertainment and other. Domestic beer volume was 99.5 million barrels in 2001, as compared with 98.3 million barrels in 2000. Worldwide sales of the Company's beer brands aggregated 107.2 million barrels in 2001, as compared with 105.6 million barrels in 2000, and accounted for approximately 82% of the its consolidated net sales dollars in 2001. Total beer volume was 124.4 million barrels and 121.3 million barrels in 2001 and 2000, respectively.

Domestic Beer Operations

The Company's principal product is beer, produced and distributed by its subsidiary, ABI, in a variety of containers primarily under the brand names Budweiser, Bud Light, Bud Dry, Bud Ice, Bud Ice Light, Michelob, Michelob Light, Michelob Golden Draft, Michelob Golden Draft Light, Michelob Black & Tan Lager, Michelob Amber Bock, Michelob Honey Lager, Michelob Hefe-Weizen, Michelob Marzen, Busch, Busch Light, Busch Ice, Natural Light, Natural Ice, King Cobra, Red Wolf Lager, ZiegenBock Amber, Hurricane Malt Liquor, Hurricane Ice, Pacific Ridge Ale, "Doc's" Hard Lemon, "Doc's" Hard Apple, Killarney's and Tequiza. ABI's products also include three non-alcohol malt beverages, O'Doul's, Busch NA and O'Doul's Amber. During 2001, ABI introduced Killarney's Pub Draught and Red Label. The Company brews Kirin Light, Kirin Lager and Kirin-Ichiban through a joint venture agreement with Kirin Brewing Company, Ltd. of Japan for sale in the United States . ABI owns a 26% equity interest in Seattle-based Redhook Ale Brewery, Inc.

The Company has also entered the alternative beverage segment with its energy drink, 180. 180 is distributed and sold on a nationwide basis, and is available in single eight-ounce slim-line cans. The Company's wholly owned subsidiary, Busch Agricultural Resources, Inc. ( BARI ), operates rice milling facilities in Arkansas and California , 12 grain elevators in the Western and Midwestern United States, barley seed processing plants in Fairfield , Montana , Idaho Falls , Idaho and Powell , Wyoming , a barley research facility in Ft. Collins , Colorado and a rice research facility in California . BARI also owns and operates malt plants in Manitowoc , Wisconsin ; Moorhead , Minnesota , and Idaho Falls , Idaho . Through wholly owned subsidiaries, BARI operates land application farms in Jacksonville , Florida and Fort Collins , Colorado ; hop farms in Bonners Ferry, Idaho and Huell , Germany , and an office in Winnipeg , Canada . Another wholly owned subsidiary, Wholesaler Equity Development Corporation, shares equity positions with qualified partners in independent beer wholesalerships and is invested in seven wholesalerships.

Major competitors in the United States brewing industry include Philip Morris, Inc. (through its subsidiary Miller Brewing Co.), Adolph Coors Co. and Pabst Brewery Co.

International Beer Operations

International beer volume was 7.7 million barrels in 2001, compared with 7.3 million barrels in 2000. Anheuser-Busch International, Inc. oversees the marketing and sale of Budweiser and other ABI brands outside the United States, operates breweries in the United Kingdom and China, negotiates and administers license and contract brewing agreements on behalf of ABI with various foreign brewers and negotiates and manages equity investments in foreign brewing partners. In addition, ABI's beer products are being sold under import-distribution agreements in more than 80 countries and United States territories and to the United States military and diplomatic corps outside the continental United States .

Through Anheuser-Busch Europe Limited (ABEL), certain ABI beer brands are marketed, distributed and sold in 29 European countries. In the United Kingdom , ABEL sells Budweiser, Bud Ice, Michelob and Michelob Golden Draft brands to selected on-premise accounts, brewers, wholesalers and directly to off-premise accounts. Budweiser, Bud Ice and Michelob are brewed and packaged at the Stag Brewery near London , England , which is managed and operated by ABEL. Michelob Golden Draft is imported into the United Kingdom by ABEL.

In Canada , Budweiser and Bud Light are brewed and sold through a license agreement with Labatt Brewing Co. In Japan , Budweiser is brewed and sold through a license agreement with Kirin Brewery Company, Limited. Budweiser is also brewed under license and sold by brewers in Korea (Oriental Brewery Co. , Ltd.), the Republic of Ireland and Northern Ireland (Guinness Ireland Limited), Italy (Birra Peroni Industriale) and Spain (Sociedad Anonima Damm). The Company has a partnership with Brasseries Kronenbourg, a brewer in France , for sale and distribution of Bud in France .

Packaging Operations

The Company's packaging operations are handled through the following wholly owned subsidiaries: Metal Container Corporation, which manufactures beverage cans at eight plants and beverage can lids at three plants for sale to ABI, United States soft drink customers and Grupo Modelo; Anheuser-Busch Recycling Corporation, which recycles aluminum cans at its plant in Hayward, California; Precision Printing and Packaging, Inc., which manufactures metalized and paper labels at its plant in Clarksville, Tennessee, and Eagle Packaging, Inc., which manufactures crown and closure liner materials for ABI. Through a wholly owned limited partnership known as Longhorn Glass Manufacturing, L.P., the Company owns and operates a glass manufacturing plant in Jacinto City , Texas , which manufactures glass bottles for its nearby Houston brewery.

Family Entertainment

The Company is active in the family entertainment field, primarily through its wholly owned subsidiary, Busch Entertainment Corporation (BEC), which owns, directly and through subsidiaries, nine theme parks. BEC operates Busch Gardens theme parks in Tampa , Florida , and Williamsburg , Virginia , and SeaWorld theme parks in Orlando , Florida ; San Antonio , Texas , and San Diego , California . BEC operates water park attractions in Tampa , Florida ( Adventure Island ), Williamsburg , Virginia (Water Country, U.S.A. ) and Langhorne , Pennsylvania ( Sesame Place ), as well as Discovery Cove in Orlando , Florida , which is a reservations-only attraction offering interaction with marine animals. Through a Spanish affiliate, the Company also owns a 16.1% equity interest in Port Aventura, S.A., which is a theme park near Barcelona , Spain .

Other

Through its wholly owned subsidiary, Busch Properties, Inc. (BPI), the Company is engaged in the business of real estate development. BPI also owns and operates The Kingsmill Resort and Conference Center in Williamsburg , Virginia . Through other wholly owned subsidiaries, the Company owns and operates a marketing communications business (Busch Creative Services Corporation) and a transportation service business (Manufacturers Railway Co.).

Disclaimer:
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.

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