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Anheuser-Busch Invests $1.5 Billion To Expand Brewing-Distribution Hubs In Four Cities

Anheuser-Busch will invest more than $1.5 billion in its U.S. brewing, agriculture, packaging and distributing operations by 2018. Expansion projects are currently underway in four cities and five production sites in; St. Louis, Fort Collins, Los Angeles, Columbus.

In 2015 expansion projects include:
  • $150 million expansion project at the St. Louis, Missouri, area Metal Container Corporation facility to increase production of the popular Bud Light aluminum bottles.
  • $45 million to build new can line and additional warehouse at its Fort Collins, Colorado, brewery to produce the slim, 12-ounce can style.
  • $20 million in capital investments at the Los Angeles brewery to add new water efficiency and treatment capabilities.
  • $18 million in investments including a sustainability project that will reduce energy needs by recovering heat for use in fueling the operation in Columbus, Ohio.
  • $12 million invested in the company's historic St. Louis brewery for various improvements, including projects to conserve resources and support new innovations.
  • $11 million to develop and integrate new products, including Bud Light MIXXTAILs and Oculto across multiple breweries.
Future spending plans are based on no new or increased taxes or unforeseen events that would negatively impact Anheuser-Busch's business, company officials said. The expenditures are consistent with Anheuser-Busch InBev's 2015 net capital expenditures guidance.

According to the firm, these investments will support growth of its brands and reinforce the beer company's commitment to the United States communities where it operates through local spending and jobs. The leading beer company plans to spend an estimated $850 million on brewery and packaging expansion projects, $220 million on product innovation initiatives and $720 million in sustaining and increasing efficiency of its existing footprint.

"Our beers lead their categories because we hold quality at the center of every beer we produce and invest in our brands through talented people, new innovation and advanced operations," said Joao Castro Neves, President of Anheuser-Busch InBev North America. "We have demonstrated commercial success from recent investments which increases opportunity for future projects. When we make investments in our local communities it is good for all stakeholders, including employees, local legislators and community leaders – they are critical to our success."

Investments to modernize and add equipment at brewery and can plant facilities ensured the beer company could deliver these innovations. In addition, the U.S. facilities focused on continuous improvement and increasing efficiency.

"Upholding our high-quality brewing standards requires significant financial commitment for equipment, technology and skilled people," said Pete Kraemer, Vice President of Supply for Anheuser-Busch. "In addition to investing in operations, we contribute to our local communities through environmental sustainability initiatives that drive our water conservation, energy savings, and recycling efforts."

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