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DETAILS ABOUT BREWERY
From Wikipedia, the free encyclopedia
||This article needs additional for . Please help by adding . Unsourced material may be and . (May 2009)
This article is about the business acquired by Anheuser–Busch InBev in 2008. For the parent company, see .
Anheuser-Busch Companies, Inc.
||Beverages and packaging
||1852, incorporated in 1875
Luiz Fernando Edmond (North American Zone President)
||, , , ,
||$16.7 billion (2007)
Anheuser-Busch Companies, Inc. (pronounced ), a wholly owned subsidiary of -based , is a formerly American-owned brewing company. The company operates 12 breweries in the United States and 18 in other countries. It was, until December 2009, also one of America's largest theme park operators; operating ten theme parks across the United States through the company's family entertainment division, . As a subsidiary, the regional headquarters are still located in , .
Interior of the St. Louis brewery
The brewery which would become Anheuser-Busch was purchased on the brink of bankruptcy by , a prosperous German-born soap manufacturer, in 1860., Anheuser’s son-in-law, joined E. Anheuser & Co. in 1864, becoming partner in 1869. Adolphus became president when Anheuser died in 1880, and the company then became Anheuser-Busch Brewing Association. The Busch family would be in full control of the company through the generations until Anheuser-Busch's sale to InBev in 2008.
Adolphus Busch initially toured Europe and studied the changes in brewing methods which were taking place at the time, particularly the success of , which included a locally popular example brewed in . In 1876, Busch introduced , with the ambition of transcending regional tastes.
Adolphus Busch was the first U.S. brewer to use pasteurization to keep beer fresh, the first to use artificial refrigeration and refrigerated railroad cars and the first to bottle beer extensively. This ability to transport bottles made Budweiser America's first national beer brand, and it was marketed as a "premium" beer. At the time, the term "premium" applied to all nationally-distributed beers, and in 1896 the company introduced its "super-premium" brand , which is still marketed today as the higher-end line of AB products.
 20th Century
As with all breweries in the country, the movement and eventual dealt a major blow to the company in the 1910s through the 1930s. Some of the products sold by Anheuser-Busch to survive during Prohibition included brewer's yeast, malt extract, ice cream, and Bevo, a nonalcoholic malt beverage.
Anheuser-Busch became the largest brewer in the United States in 1957.
Anheuser-Busch International, Inc. was established in 1981, and is responsible for the company's foreign beer operations and equity investments. However, after the InBev takeover, A-BII essentially has been shut down and those respective operations were transferred to the other InBev zones where the interests are located.
As of 2008, it has 48.9% share of beer sales in the United States (by barrels), and produces about 11 billion bottles and cans of beer a year.
Up until 2009, Anheuser-Busch was also one of the largest theme park owners/operators in the United States, with ten parks throughout the country through its entertainment division, . On October 7, 2009, parent company Anheuser-Busch InBev announced plans to sell the division to The Blackstone Group for up to $2.7 Billion USD.
 Acquisition by InBev
On June 12, 2008, Brazilian-Belgian brewing company announced that it had made a US$ 46 billion dollar offer for the company. which if it was accepted would join two of the world's four largest brewing companies (based on revenue) and create a company brewing three of the highest grossing beers in the world, namely Bud Light, Budweiser, and . InBev also stated that the merger would not result in any U.S. brewery closures and they would also attempt to retain management and board members from both companies. On June 25, 2008, Anheuser-Busch officially announced that they would reject InBev's offer and provide a restructuring of company to maintain shareholders and United States World Headquarters in St. Louis. On July 1, 2008, urged Anheuser-Busch shareholders to vote in favor of the buyout as InBev felt the offer of $65 per share should be considered a reasonable offer in view of the falling stock market. The company had previously filed suit in , after the rejection of their offer, to ensure that the stockholders could oust Anheuser-Busch's 13 board members. On July 7, 2008, Anheuser-Busch filed a lawsuit against InBev to stop them from soliciting support of shareholders, stating that the company's offer is an illegal scheme. InBev was also accused of concealing that they do business in , which might have created additional obstacles to their efforts to operate in the United States.
On July 13, 2008, Anheuser-Busch and InBev said they had agreed to a deal, pending shareholder and regulatory approval, for InBev to purchase the American icon at $70 per share, creating a new company to be named Anheuser-Busch InBev. Anheuser-Busch would get two seats on the combined board of directors. The all-cash agreement, almost $52 billion in total equity, created the world’s largest brewer, uniting the maker of and with the producer of , , and , , and . The two companies had combined yearly sales of more than $36.4 billion, surpassing the current No. 1 brewer, London-based .
 Changes introduced by InBev
On November 18, 2008, the acquisition was completed and the company is now known as Anheuser-Busch Inbev. Within six months, InBev "turned a family-led company that spared little expense into one that is focused intently on cost-cutting and , while rethinking the way it sells beer." InBev is applying an approach that "stresses a sharp eye on costs and structures" that it inherited from in a prior acquisition; among the changes:
- 1,400 U.S. employees (6%) and 415 contractors were laid off
- introduced what InBev called an "increased focus on meritocracy" that means salaried workers receive a base salary that was supposed to be targeted at 80% to 120% of the market rate (though this has not turned out to be the case, with many employees earning well under 100%). The difference in Base Salary is offset with a bonus system, which can account for 15–50% of a person's salary.
- about 40 of its executives were granted a total of 28 million stock options, "potentially worth tens of millions of dollars to each recipient, if the company reduces its by about half in five years"
- for senior management, elimination of executive assistants and private secretaries
- elimination of free beer program known as the Anheuser Busch Hospitality Houses and Brewmasters Club formerly located at the theme parks. However, the St. Louis Anheuser-Busch Brewery Tour as well as the Grant's Farm park in St. Louis county both offer free AB products to their guests. On October 7, 2009 Anheuser Busch InBev announced the sale of its Busch Entertainment Corporation theme park division to The Blackstone Group. The sale was complete on December 1, 2009 and the division was renamed SeaWorld Parks & Entertainment.
- announced it would end contributions to its for salaried employees in 2012
- "ornate executive suites" were replaced by a "sea of desks"
- the number of company-supplied for employees cut from 1,200 to 720
- terms lengthened to 120 days
- put its corporate jets up for sale
- announced that in January 2010, it will stop providing for retirees
- elimination of tuition reimbursement for all but its highest rated employees (those rated 4a and 4b)
These changes are also accompanied by .
The changes continued in 2010, as Anheuser-Busch InBev:
- Continued with layoffs according to the and employees (with more layoffs rumored to come)
- Revamped their severance policy to require employees to sign away their rights to WARN pay before receiving severance
In the United States, Anheuser-Busch operates 12 breweries. These are located in St. Louis, Missouri; Baldwinsville, New York; Cartersville, Georgia; Columbus, Ohio; Fairfield, California; Fort Collins, Colorado; Houston, Texas; Jacksonville, Florida; Van Nuys, Los Angeles, California; Merrimack, New Hampshire; Newark, New Jersey; and Williamsburg, Virginia.
 St. Louis headquarters and brewery
The packaging plant in
||142 acres (0.57 km2)
|Added to :
||November 13, 1966
||November 13, 1966
Anheuser-Busch InBev's North American headquarters are located in , Missouri. The brewery, opened in 1852, is a , and includes three buildings listed as . Free public tours of the brewery are given. The tour takes visitors through the complex, and those of the can enjoy two free glasses of any Anheuser-Busch product in the Hospitality Room after the tour. Tourists can see beer being made and packaged in a working part of the brewery.
The company keeps a rotation of its famous at its headquarters, and visitors to the brewery can observe the in their exercise field and see their places in the carriage house. Some of the herd is kept at the company farm in . The farm, known as (having been owned by former President at one time), is home to a menagerie of animals such as elephants, tortoises, and a variety of exotic hooved mammals. Since 2008, approximately half of the Budweiser Clydesdales are kept at the Warm Springs Ranch near Boonville Missouri.
The brewery was designated a U.S. in 1966. The landmarked area includes 189 structures spread over 142 acres (0.57 km2), including many red brick Romanesque ones "with square crenelated towers and elaborate details." The Brew House, built in 1891-1892, is particularly notable for its "multi-storied hop chandeliers, intricate iron-work, and utilization of natural light".
 International operations
Anheuser-Busch, prior to the take-over, operated Anheuser-Busch International Inc. which handled the international operations (described below). After the InBev takeover, however, those specific interests and the management oversight of them has been transferred to those respective zones (Harbin, for example, is now managed by the Asia-Pacific Zone of A-B InBev). The following description of A-BII areas, therefore, is left here for historical purposes:
Outside the United States, Anheuser-Busch operates 15 breweries - 14 in and one in the ; In , A-B operates Budweiser Wuhan International Brewing Company, Ltd. and Group Ltd which A-B fully acquired in 2004. Chinese production of AB products in China started, in Wuhan, after their purchase of a local brewery in 1997. In the , the Budweiser Stag Brewing Company Ltd. produces and packages Budweiser, but this brewery is due to close in 2010 as part of cost controls introduced following Anheuser-Busch's acquisition by .
Budweiser is also locally brewed in eight other countries: Argentina, Canada, Ireland, Italy, Japan, Russia, South Korea and Spain.
Anheuser-Busch strategic equity investments include:
- 50.2% of in Mexico
- 7% of Company Ltd. in China (19.9% was sold to Asahi; the remaining interest was sold to another group - as of April 2009, A-B no longer has a stake in Tsingtao)
- 34% of craft beer
- 40% of
- 99.77% of
 Beverage products
Anheuser-Busch's best known include brands such as , , , , and . The company also produces more than 100 beers, import beers, specialty beers, nonalcoholic brews, ( such as King Cobra and Hurricane), and flavored (e.g. the Bacardi Silver family and ). Currently, the #1 bestselling beer in America is .
The company introduced a flavored 12% abv under the name Spykes in 2007. It was sold in colorful, 2- bottles. Available flavors included , , and . It was withdrawn in the same year after criticism from industry watchdog groups that it was being marketed to underage customers, and the found that the labeling of Spykes was illegal.
 Brands imported and distributed
In addition to brewing its own beer, Anheuser-Busch is responsible for the importation and distribution in the U.S. of a number of international beers. These include (known as Budvar in Europe) from the Czech Republic, from Japan, and from England, from Germany, and , , and from Belgium.
Anheuser-Busch Clydesdale at Busch Gardens in Williamsburg, Virginia.
A pre-1911 "shorty" bears an advertisement for Anheuser-Busch's Malt Nutrine tonic. The product was discontinued in 1942.
1898 magazine ad for Malt-Nutrine.
Prior to its acquisition by InBev, the company was known in the for its presence, including a sports marketing division which creates advertising material for the and many other sporting events. Budweiser has sponsored horse racing events and including NASCAR and the "Budweiser King" championship top fuel dragster of Kenny Bernstein.
Busch television campaigns have included:
, used both at liberty and being in , such as:
- The pulling traditional beer wagons
- The traditional spot featuring the Clydesdales pulling a through a snowy town, concluding with a closeup of a wreath on a door.
- Clydesdales playing (with a couple as the audience, and a for a )
- A that thinks he's a horse and wants to be one of the Budweiser Clydesdales
- A Clydesdale , who dreams of making the hitch, pretending to pull the beer wagon, which is secretly being pushed from behind by his Clydesdale parents.
- , also associated with the traditional Budweiser Clydesdale iconography
- The "Gimme a light" spots;
- "You can call me Ray, or you can call me Jay" (as referenced in and )
- saying "Bud-weis-er." The ad campaign later spawned additional characters: Louie and Frankie the and an inept .
- The annual .
- The "" series.
- The "" series of humorous radio and television ads.
- In the past they have marketed their beer through the name NASCAR Busch Series and on Darrell Waltrip's #11 Chevy Monte Carlo, Ricky Craven's #25 Chevy Monte Carlo (Then #50), Dale Earnhardt Jr's #8 Chevy Monte Carlo, and then passed on to Kasey Kahne's #9 Dodge Charger (Ford Fusion in 2010). Currently they sponsor Kevin Harvick's #29 Chevy Impala for the first 20 races of the 2011 NASCAR Sprint Cup Series Season as well as numerous campaigns in the NHRA such as The Big Bud Shootout at the US Nationals and major sponsorship with Kenny Bernstein Racing
- Bud Man is an advertising character for beer. He is a and appears on many products aimed at coeds on campuses. He also inspired , a character on .
- In the UK when Budweiser became the sponsor of the football league, a humorous series of ads involved the subsequent (fictional) 'Americanisation' of the game, including such ideas as giving the teams more exciting names (The Portsmouth Pirates) and the merging of longtime rival teams and into one Team Manchester, all with the tagline "you do the football, we'll do the beer". A-B is sponsor of the St Louis (formerly Busch) Soccer Club and, until 2009, owned the Anheuser-Busch Center in suburban . The latter has a 10,000-seat soccer park that hosts the . The facilities are now owned and operated by the women's professional soccer team. The professional team plays there, along with area club and high school teams.
- Current television commercials use the slogan "King of Beers."
- A widely-known "This Bud's for you" ad campaign
The company has long been known for its . A few of them are:
- "" - heard annually over Christmas ads featuring Clydesdales
- "When You Say Budweiser, You've Said It All"
- "Cub Fan, Bud Man" - a homage (based on their version of "") done by for broadcasts of games
- "There Is a Tavern in the Town" - old song with wording changes including "Busch" instead of "wine"
- "" (an early 1900s popular recording)
Since the acquisition by InBev, significant changes in advertising plans have been rolled out, predicated on the belief that "changing and media habits no longer require spending as much on mainstream sports events":
- A-B is cutting its television advertising budget for the U.S. broadcast of the and the and "won't seek to be the exclusive beer advertiser" for those events
- dropping 's , and other advertising agencies "responsible for some of its best-known past ads"
- paying by the project rather than an annual
- reducing the annual number of new advertisements from 100 to 50-60.
 Environmental record
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