US: Anheuser-Busch InBev to invest US$1bn in breweries
Anheuser-Busch InBev invests US$1bn in US facilities
Anheuser-Busch InBev has said that it will invest US$1bn to modernise and expand breweries and packaging facilities in the US.
The Budweiser brewer said yesterday (4 October) that it will invest the money before the end of 2014. The funding includes money that the brewer has already committed to capital projects in 2011, it added.
News of the spend comes amid a tough period for the US beer market. As demand for mainstream beer remains in decline, A-B InBev and its main rival, MillerCoors, have become increasingly reliant on price rises and efficiency savings to lift profits.
Much of A-B InBev's capital investment in the US since 2010 has focused on energy efficiency. Of the examples given by the brewer, $60m has been spent to upgrade its St Louis brewery, "including a utilities overhaul to conserve fuel, electricity and water", said the group.
It has also spent $30m at its Los Angeles brewery to switch to more energy efficiency lighting and reduce fibreboard use, among other things. At the Houston brewery, which already runs on 70% renewable energy, A-B InBev has spent $34m to expand beer production capacity by 500,000 barrels per year.
In addition, there has been investment around innovation. Since 2010, A-B InBev has invested $34m to develop its brand and packaging innovation unit at the Cartersville facility.
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