Anheuser-Busch to Invest $1.5 Billion in U.S. Operations

By Lisa Beilfuss 

Anheuser-Busch InBev NV on Tuesday announced plans to invest about $1.5 billion in its U.S. operations over the next three years, as the world's largest brewer moves to shore up its domestic sales.

The move comes months after the company said it would cut an undisclosed number of jobs in the U.S. Anheuser-Busch also consolidated its sales force and reduced its number of sales regions.

On Tuesday, it said about half of the new spending will help fund brewery and packaging expansion projects, with most of the remainder going toward efficiency efforts.

The company said several efforts in the U.S. are under way, including a $150 million expansion project in St. Louis, where it is based, and a $11 million campaign to develop new products such as Bud Light Mixxtails.

The brewer has been stung by sluggish U.S. sales in key brands like Budweiser and Bud Light. Strong sales abroad, particularly in Brazil, China, Argentina and Chile, have helped offset declining domestic sales.

U.S. beer drinkers have increasingly demanded craft-beer options, and in January Anheuser-Busch bought Seattle-based Elysian Brewing Co.----its fourth craft-brewery acquisition in five years.

In May, the company said a derivatives gain pushed its first-quarter profit sharply higher, helping offset weak U.S. results and the impact of a strong dollar on revenue from the rest of its global beer empire.

Write to Lisa Beilfuss at [e-mail]

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