1. This is who I am.
In 2005, Anheuser-Busch sold
more than 2.5 times the volume
of the second-largest brewer in
the United States.

2. D o m e s t i c B e e r O p e r at i o n s
This is beer.
Anheuser-Busch is the leading
brewer in the United States, with a
48.8 %
market share.
Since its founding more than 150 years ago, As the industry leader, Anheuser-Busch will leverage
Anheuser-Busch has been a leader in the beer industry. highly targeted marketing and innovative products and
With nearly 50 percent of the U.S. domestic market packages to make great beer…and make beer great.
share, a portfolio of more than 40 brands, and
This is beer…
12 breweries strategically located throughout the
United States, Anheuser-Busch has the resources in The company’s trademark brand families — Budweiser,
place to enhance beer industry volume, while continuing Michelob, Busch and Natural — play a key strategic
to meet the changing needs of today’s consumer. role as the volume drivers of the company. Marketing
Despite a challenging year for the brewing industry, for these brands focuses on their unique imagery and
beer remains the most-consumed alcohol beverage by product points of difference. New advertising, such
adults in the United States by a wide margin, repre- as Budweiser’s “Anthem” campaign, helped to reenergize
senting 57 percent of alcohol beverage servings. In and reinforce the brand experience in 2005, establishing
2005, Anheuser-Busch shipped 101 million barrels, a strong image and quality foundation for the entire
more than 2.5 times its closest domestic competitor, Budweiser family.
and its U.S. market share was 48.8 percent. Budweiser continues to be Anheuser-Busch’s flagship
In 2005, Budweiser family sales-to-retailers were up brand. In 2005, Budweiser brought the world-famous
nearly 2 percent and gained almost one share point in Clydesdales to communities across the United States
supermarkets, according to IRI data. Anheuser-Busch’s during the “Clydesdales Across America Here’s to the
domestic beer shipments to wholesalers declined Heroes Tour.” The 28-city tour honored America’s
1.8 percent as wholesaler inventories were reduced military with an interactive display and mobile studio
significantly. Domestic wholesaler sales-to-retailers where visitors could record personal messages to
increased 0.2 percent, selling day adjusted, for the year. share with the U.S. military, courtesy of Budweiser.
Sales-to-retailers improved significantly in the More than 13,000 Americans recorded messages that
second half of 2005. Anheuser-Busch is focused on reached their loved ones through Armed Forces Radio
sustaining this momentum by executing its key strategies: and Television Service at U.S. military outposts in
Elevating and enhancing the image and more than 177 countries. The exhibit also chronicled
relevance of beer Anheuser-Busch’s 150-year commitment to the military.
Making our brands the preferred beer choice
9

3. D o m e s t i c B e e r O p e r at i o n s
drink recipes that feature beer as
the primary ingredient.
As part of its commitment
to creating new beverages that
appeal to today’s adult consumer,
Anheuser-Busch formed the
Innovation Group, charged with
developing new beverages through
brand extensions and beer category
expansion. New offerings include
malt beverages, flavored beers, and
beers such as BE, which combines
fruit flavors with caffeine and
guarana. Another new malt brand,
Tilt, debuted nationally in 2005 and
featured a blend of caffeine, guarana
and ginseng. The Bacardi family
of flavored alcohol malt beverages
also added two new flavors —
Bacardi Silver Big Apple and Bacardi
B U D W E I S E R C LY D E S D A L E S A C R O S S A M E R I C A On July 3, 2005,
Silver Strawberry — adding to the
St. Louis hosted the “Clydesdales Across America Here’s to the Heroes Tour”
brand’s refreshing lineup.
finale. Featuring the world-famous Budweiser Clydesdales, the tour visited
Seasonal beer offerings were
28 cities and was seen by millions across the United States last year.
introduced in 2005, with plans for
further expansion in 2006. To
Anheuser-Busch has been the launches, with more than 2 million generate excitement in the draught
exclusive beer category advertiser barrels sold in its inaugural year. category, Anheuser-Busch introduced
during the Super Bowl for the past Budweiser Select’s national adver- a series of limited edition seasonal
18 years. In 2006, Bud Light’s tising campaign featured U.S. beer draught brews. The Michelob
“Secret Fridge” spot was voted company President August Busch IV Specialty Sampler Collection offered
No. 1 in USA Today’s “Ad Meter” and underscored the brand’s sophis- a full line of Michelob brands in
rankings, marking the eighth consec- tication and its “Expect Everything” a variety pack featuring Michelob
utive year that Anheuser-Busch brand identity. Pale Ale and the malty Michelob
has won first place in what many These actions together have Marzen. Both of these brands
consider the top consumer poll for contributed to share growth for the won gold medals at the 2005
®
Super Bowl advertising. Bud Light, Budweiser family of brands during Great American Beer Festival.
the world’s largest beer brand, also the past four quarters, according to Additional seasonal brews
launched new advertising in 2005 IRI supermarket data. were introduced in 2005:
with the theme “Always Worth It” Celebrate by Michelob and
This is innovation…
that highlights its fun, contempo- Brew Masters Private Reserve by
rary and social positioning. The Innovation starts with a deep Budweiser. These special-edition
brand also continues its presence understanding of the consumer, sipping beers, developed for the
in sports through sponsorships and today’s contemporary adult holiday season and packaged in
with the National Basketball consumers 21 and over crave large bottles for multiple servings,
Association, the National Hockey variety more than ever before. were carefully crafted to deliver
League, the majority of National To meet these changing tastes, full-bodied tastes and aromas.
Football League teams and many Anheuser-Busch introduced more Additional seasonal brands are
other sports properties. than 30 new products and encour- planned for 2006 to further
Budweiser Select, the newest aged consumers to experiment with Anheuser-Busch’s objectives
addition to the Budweiser family, new flavors and different ways to of competing for high-end beer
was introduced nationally in 2005. enjoy beer. The company also occasions and gaining retailer
This was one of the company’s developed drink innovations — support over other alcohol
most successful new product beverages during the holidays.
10

4. D o m e s t i c B e e r O p e r at i o n s
Partnerships played an impor- throughout the year, such as product and packaging innovation,
tant role in providing expanded St. Patrick’s Day, Cinco de Mayo Anheuser-Busch increased its sales
choices for Anheuser-Busch custom- and the World Series. Budweiser force and committed additional
ers in the growing craft and import and Bud Light also offered team- resources to off- and on-premise
beer segments. Anheuser-Busch specific packaging to highlight their marketing. The company deployed
formed a new group to develop “official beer sponsorship” of 28 brewing and marketing “ambassa-
alliances, increase focus in this National Football League teams. dors” and contemporary marketing
category and leverage its long- teams — dedicated sales teams who
This is commitment…
standing relationships with quality meet with owners, wait staff and
craft brewers, such as Redhook and The Anheuser-Busch wholesaler consumers — to help sell Anheuser-
Widmer Brothers. In addition to partnership provides the company Busch products in key markets
these craft brands, the current with a strong competitive advantage. across the country. This increased
Anheuser-Busch portfolio of alliance Nearly 70 percent of the company’s focus on “hand-to-hand selling”
brands includes Japan’s Kirin volume is sold through exclusive enables Anheuser-Busch whole-
brands, Kona beers from Hawaii, wholesalers, increasing focus on the salers to work more closely with
and Harbin, a new entry to the sales of Anheuser-Busch’s products. retailers at the local level and gain
U.S. market from Anheuser-Busch’s Anheuser-Busch is committed in-depth knowledge of consumer
wholly owned China subsidiary. to providing the right marketing behaviors and emerging trends.
and sales tools to wholesalers and On-premise activities also
This is enjoyment… retailers throughout the country include high-image and high-
Variety comes in many sizes for and demonstrated this in new impact draught beer presentation,
today’s adult consumers, and and innovative ways in 2005. In new European-style draught
innovative new packaging styles addition to increasing its focus on towers, upscale glassware and
and shapes remain a cornerstone
of Anheuser-Busch’s plans to
This is true.
elevate the image of beer. In
2005, Anheuser-Busch launched
aluminum bottles nationally.
The versatile new packaging is
ideal for contemporary adults
who want a stylish looking beverage
when out at a club, bar or upscale
restaurant. Anheuser-Busch’s
aluminum bottles were so well-
received that demand temporarily
exceeded supply.
In addition, the national
rollout of the applied plastic label
was completed in 2005. The clear
label is found on Bud Light and
Budweiser Select packaging and
enhances the premium image and
appeal of the brands.
1 3
Anheuser-Busch also is using
“shrink-wrap” technology to create
Budweiser is Budweiser Select
limited-edition packages throughout
the top-selling is one of the most
the year. This technology applies
premium beer in successful new
a form-fitting vinyl plastic wrap
2
to bottles that can be easily the world. beer launches in
customized. Bud Light offered
Bud Light is the the history of the
festive shrink-wrap package designs
top-selling light brewing industry.
for the winter holidays and will
beer worldwide.
highlight other special events
11

5. D o m e s t i c B e e r O p e r at i o n s
In addition to marketing and
MULTICULTURAL
media programs, Anheuser-Busch
MARKETING
Latin pop star supports nearly 400 community-
Angelina, national
based local and national Latino
spokesperson
organizations and special events.
for Education
During the past 20 years, the com-
Is Freedom,
pany has contributed nearly $50
performed her
million through programs such as
hit “Caliente” at
the Mets’ annual Budweiser Homerunazo!, a program
Hispanic Heritage benefiting the Hispanic Scholarship
Night, sponsored
Fund (HSF). In cooperation with
by Budweiser.
16 Major League Baseball teams,
Anheuser-Busch and its distributors
contributed $100 to HSF and other
local charities each time home team
players hit a home run.
Commitment was not limited
to marketing and product innova-
tion. During 2005, Anheuser-Busch
expanded point-of-sale materials, celebration, and Budweiser’s True continued to implement several
such as creative, eye-catching tap Pioneers program, featuring posters cost savings initiatives. Brewery
markers and illuminated menu of African-American musicians, modernizations, such as improve-
boards. Our commitment was poets and athletes commissioned for ments to packaging line flexibility
extended through the “Ambassadors Black History Month. and increased bottle line speed,
of Quality” program, which allows For more than 15 years, reductions in brewery material
employees to share their passion Anheuser-Busch has contributed to costs and transportation initiatives,
for beer with friends and family. Asian Pacific American communities including consolidation and
The company also created through a variety of programs. In improved scheduling of shipping
a global industry development 2005, Michelob Light sponsored the carriers, contributed nearly
team that is spearheading first-ever Music Video competition $100 million in incremental
Anheuser-Busch’s efforts to at the 28th annual Asian American productivity improvement savings.
enhance the image of beer and International Film Festival. Through its “One Company”
generate growth for the entire The Latino market represents initiative, Anheuser-Busch stream-
beer industry. The group has 11 percent of the U.S. beer industry lined operations in information
taken steps to develop an industry- volume, and adult Latino drinkers technology, engineering, finance
wide coalition and campaign account for 12 percent of and supply chain functions, setting
that highlights beer’s role in Anheuser-Busch’s overall sales the stage for long-term cost savings
American culture. volume. Anheuser-Busch has the while forming an organizational
While Anheuser-Busch No. 1 and No. 2 brands in the structure poised for the future. To
continues to devote resources to Latino market, Bud Light and offset significant commodity cost
traditional marketing programs Budweiser, and currently holds increases incurred by most indus-
and sponsorships, the company 48 percent of Latino market share tries, particularly high utility costs,
has increased its focus on ethnic according to IRI data. To continue the company initiated productivity
marketing. To extend its long- to reach this key demographic, the projects such as boiler control
standing support of adult urban company sponsors national and improvements and process heat
and multicultural consumers, local market promotions such as recovery to reduce fuel costs.
Anheuser-Busch created a new team viewing parties for the Mexican As adult consumer tastes
to lead marketing and community National Soccer Team and FIFA evolve, the company will continue
outreach for these key customer World Cup™ Qualifier Games. to invest in the right resources to
groups. Programs include deliver innovative products and
Budweiser and Bud Light are also
Budweiser’s sponsorship of the meaningful marketing messages
proud sponsors of several Latin
Essence Music Festival, the country’s that communicate the spirit and
recording artists and concerts.
largest African-American music quality of Anheuser-Busch.
12

6. This is innovation.
Anheuser-Busch launched more
than 30 new products in 2005.