Anheuser-Busch boosts spending to adapt to fragmented market
Anheuser-Busch is upgrading its U.S. breweries and plans to build two new distribution centers as it adapts to an increasingly fragmented beer market.
The maker of Budweiser, Bud Light and Stella Artois says the upgrades and new distribution centers in Los Angeles and Columbus, Ohio will allow it to store a greater variety of products and get them to customers faster. The measures are part of the $500 million that the company said Monday it will invest in its U.S. operations this year, marking an increase compared with recent years. It's a portion of the $3.7 billion in global capital expenditures that the Belgian company had already budgeted for 2017.
Anheuser-Busch has struggled to boost sales volumes as craft beers grow increasingly popular in an already crowded marketplace. In 2016, total volume at Anheuser-Busch declined 2 percent, including a 1.6 percent volume decline in North America.
The same thing is happening with non-alcoholic drinks. PepsiCo CEO Indra Nooyi has said the industry is becoming more "niche," and that PepsiCo needs to learn how to thrive amid that growing complexity.
The investment announced by Anheuser-Busch Monday includes upgrades to breweries in Fort Collins, Colorado and St. Louis, Missouri. The company did not say how many new jobs it expects this year's U.S. investments to create. It has added around 2,500 jobs since 2013, the company said. Anheuser-Busch employs more than 17,000 people in the U.S.
In 2015, Anheuser-Busch had said it expects to invest $1.5 billion from that year to 2018. The Monday announcement was an update, with the company saying it is spending $2 billion from this year through 2020. (dpa)
Other news from the department business & finance
Most read news
More news from our other portals
Last viewed contents
Limiting antibiotics for cows may create a new dairy market
Map of feelings of happiness - Finally back in the ice cream parlor! Researchers have now discovered how our brain guides us to such "reward places".
Put the kettle on! How black tea (and other favorites) may help your health later in life - Thanks to flavonoids, a daily cup could help you to enjoy better cardiovascular health late in life — however if you’re not a tea drinker, there are other things you can add to your diet
German beer sales up in 2022 after COVID pushed them down
Japanese Study Uncovers the True Role of 'Health Foods' in Nutrient Intake
Hands off gummy bears with melatonin for children - Three questions for Angela Clausen, consultant for food in the health market at the NRW consumer advice center
New peanut has a wild past and domesticated present - Researchers dig into the past to create new varieties to improve production
Red Microalgae Makes Veggie Burgers Bleed - Yemoja's new microalgae is poised to become a nutritious player in the plant meat space
The Absolut Company partners with blue ocean closures to develop innovative fibre-based bottle cap
Deutscher Tee & Kräutertee Verband e.V - Hamburg, Germany
Nescafé ranked number 3, among the top 100 megabrands
