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Anheuser-Busch InBev readies US$2bn US operations spend

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Anheuser-Busch InBev is set to spend in the region of US$2bn on updating its footprint in the US.

Anheuser-Busch is the US arm of A-B InBev

Anheuser-Busch is the US arm of A-B InBev

The investment, which forms part of a capital expenditure programme initially announced in 2011, sees US arm Anheuser-Busch ringfence around $500m for this year. The remaining $1.5bn will be spent between 2018 and 2020.

The news represents "the next phase in a period of extensive, ongoing investment by Anheuser-Busch, with investments totalling $4.5bn from 2011 to 2020". Six years ago, AB unveiled a $1bn injection into its operations in the country, to be spent before the end of 2014.

The latest investment "will help drive forward the company's growth strategy, including through new and innovative collaborations with companies like Teavana", the US unit said.

The brewer teamed up with Starbucks last year to launch an RTD tea under the coffee company's Teavana brand.

This year's investment sees around $200m go to brewery and distribution projects, $180m available for product packaging and innovation initiatives and $58m going towards sustainability efforts.

AB operates 21 breweries across the US.

Click below to see a breakdown of AB's intended spends.

In first-quarter results, released earlier this month, ABI saw sales at its North America reporting unit dip by 2%, with the region's volumes declining by 4%.

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Show the press release

Key individual investments in the new capital expenditure program include:

  • $82m to enhance nationwide supply chain operations and to build new, state-of-the-art distribution facilities in Los Angeles and Columbus
  • $28m at the Fort Collins brewery to expand production of popular aluminum bottle products and increase diversity of products through installation of dry hop capabilities
  • $18m at the Williamsburg brewery on new technology and equipment to maintain quality, and to install new labeling machines
  • $15m to begin innovative cross brewing capabilities at the Fairfield brewery through Elysian partnership, including significant updates to brewery infrastructure
  • $12m for the Cartersville brewery to install a new multi-packer to diversify packaging capabilities, as well as new programming and metering devices to increase energy efficiency
  • $13m 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. beechwood-aging tanks and several other initiatives that allow for production capability of new brands, as well as investments to increase sustainability.
  • $11m to expand aluminum bottling capabilities at the Jacksonville brewery, as well as upgrades to improve energy efficiency
  • $11m to begin innovative cross brewing capabilities at the Merrimack brewery alongside craft partners
  • $10m in continued investments at the Los Angeles brewery to add water efficiency and treatment capabilities
  • $10m to the Baldwinsville brewery to increase production of non-alcoholic product offerings, mainly Teavana, and to install a new multi-packer
  • $8m to the Houston brewery to begin brewing the popular Michelob Ultra Lime Cactus product and to expand aluminium bottle production
  • $7m to the Columbus brewery to support various improvements, including projects to conserve resources and to develop and integrate new products

Original source: Company Release


Sectors: Beer & cider

Companies: Anheuser-Busch InBev

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