Anheuser-Busch, has announced that it will eliminate “1,400 U.S. salaried positions in its beer-related divisions, affecting about 6 percent of the company’s total U.S. workforce.” Plus, 250 vacant positions will not be filled and 415 independent contractors will also be cut. This is in addition to 1000+ employees who chose a voluntary enhanced early retirement. Merry Christmas everybody!!

From the press release (pdf):

Anheuser-Busch InBev (Euronext: ABI) today announced that, as part of its previously announced plans to effectively integrate Anheuser-Busch Inc., the U.S. business unit today communicated plans to cut approximately 1,400 U.S. salaried positions in its beer-related divisions, affecting about 6 percent of the company’s total U.S. workforce.

About 75 percent of the affected positions are based at the brewer’s corporate headquarters in St. Louis, at downtown offices or at its Sunset Hills campus, while other reductions will occur in field and brewery locations.  In addition, more than 250 U.S. positions that are currently open will not be filled.  An additional 415 contractor positions will be eliminated. Most of the reductions will occur by the end of this year, with the remainder taking effect next year.

“To keep the business strong and competitive, this is a necessary but difficult move for the company,” said David A. Peacock, president of Anheuser-Busch.  “We will assist in the transition for these employees as much as possible.  The people of Anheuser-Busch dedicate themselves to the business, and we appreciate all of their contributions.”

The company will provide employees severance pay and pension benefits based on age and years of service. Employees also will be offered additional benefits during the transition, including outplacement services.

The announced workforce reductions are in addition to the more than 1,000 U.S. salaried employees company-wide who accepted the company’s voluntary enhanced retirement program, which closed November 14 and provided special benefits for eligible employees retiring by the end of 2008.  The retirements were part of planned cost reductions of 1 billionUSD, called project Blue Ocean, announced by Anheuser-Busch in June 2008.  At that time, the company announced plans to reduce its company-wide U.S. full-time salaried workforce of 8,600 by 10 to 15 percent before the year end.  The company’s other Blue Ocean cost reductions remain on track.

Bargaining unit employees at the company’s 12 U.S. breweries are unaffected by the reductions announced today.

“Managing our costs is important in building and maintaining a successful business, especially in a challenging economy,” said Peacock.  “We are pleased with our U.S. beer sales, we will continue to invest in growing our brands and we will always look for ways to become more efficient.  Decisions like this are never easy, but they will ensure the long-term success for Anheuser-Busch and our employees.”

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The takeover by InBev of Anheuser-Busch is one step closer to a done deal. From the press release:

Anheuser-Busch Cos. Inc. (NYSE: BUD) today announced that a majority of its shares have been voted to approve the proposed combination between InBev N.V./S.A. and Anheuser-Busch during a special shareholder meeting held today.

At the closing of the transaction, Anheuser-Busch shareholders will be entitled to receive $70 in cash for each share of outstanding Anheuser-Busch stock, and Anheuser-Busch will become a wholly owned subsidiary of InBev. Closing of the transaction remains subject to necessary regulatory approvals and other customary closing conditions. A closing date has not been announced, but the parties continue to expect the deal to close before the end of the year. InBev shareholders approved the combination on Sept. 29.

This is a pretty good deal for shareholders but not such a good deal for the employees who may lose their jobs once the merger is complete.

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Michelob Brewing Co., a subsidiary of Anheuser-Busch, said Monday that it would kick off an advertising campaign, offer some seasonal varieties year-round, and bring some other A-B beers under the Michelob nameplate and give them all consistent, new packaging.

It looks like Anheuser-Busch is diving headlong into the craft beer market by branding several craft beers, or “classic style” beers as they say, as Michelob. The beers to be offered are Michelob Dunkel Weisse, Michelob Pale Ale, Michelob AmberBock, Michelob Honey Lager, Michelob Porter, Shock Top Belgian White organic Stone Mill Pale Ale, and seasonal beers Jack’s Pumpkin Spice Ale, Winter’s Bourbon Cask Ale, Sun Dog Amber Wheat and Beach Bum Blonde Ale.

I noticed on the Michelob website that their slogan is “Crafting a better beer.” Is that new? I think it is interesting that A-B would dedicate an entire brand to craft beer. I have said before that this is evidence of America’s maturing beer palette.  However, this could be bad news for microbreweries which can’t compete with Michelob on price and distribution scale. However, if the Michelob beers are watered-down versions of craft beers, they will never be able to compete with true full-flavored craft beers.

The only beer I have personally had from their line-up is Shock Top, which AB seemed embarrased to offer. It was a decent beer but not outstanding for a Belgian Wheat by any means. If it is representative of Michelob’s craft collection, real beer lovers will not abandon their microbrew favs for Michelob. This may even help the micros in the long run. If people who normally drink industrial beers try Michelob, they may get a taste of what real beer is and make the leap to craft beers.

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The takeover of Anheuser Busch by Belgian company InBev moves Boston Beer Co., maker of the Sam Adams craft beers, to the top American brewer slot. That’s right, America’s largest brewer is a craft brewer.

Pabst is trying to claim the title but doesn’t own their own brewery, while they do produce the most beer by volume. All of their brews are contracted out to Miller.

CNN has a great interview with Jim Koch, Boston Beer’s founder. My favorite quote comes when he is asked if he plans to capitalize on AB’s sale in his marketing.

No, I’ve always believed people should drink the beer for its inherent quality. To me, waving the flag doesn’t make the beer taste any better.

Amen, brother.

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