Dethroning the King
Page 42
Page 81 “Yet even during the takeover battle . . .” Andrew Ross Sorkin, “Chilling a Deal for Bud,” New York Times DealBook, June 17, 2008. http://dealbook.blogs.nytimes.com
Page 82 “You have to do three times as good as the next guy . . .” Ludington, “Bud Man,” C1.
Page 83 “After dropping out of the University of Arizona . . .” “Interview Heir Apparent,” Modern Brewery Age, September 19, 1994, S10.
Page 83 “In February of 1990 . . .” Ludington, “Bud Man,” C1.
Page 83 “Budweiser’s branding under his command . . .” Barbara Lippert, Adweek, July 20, 1992, Critique.
Page 88 “August Busch III has always seemed . . .” Bill McClellan, “To Sell Beer Takes More Than a Glare,” St. Louis Post-Dispatch, July 7, 1997.
Page 90 “We just hope it doesn’t come to that . . .” Ludington, “Bud Man.”
Page 90 “I don’t know that it’s true . . .” Gerry Khermouch, Julie Forster, and John Cady, “Is This Bud for You, August IV?” BusinessWeek, November 11, 2002.
Page 90 “That wasn’t something I was looking for . . .” Christopher Tritto, “Brewery Heir Steven Busch Acquires Krey Distributing,” St. Louis Business Journal,” December 8, 2006.
Page 90 “August IV’s sister . . .” Matthew Hathaway, “History of the Busch Family,” St. Louis Post-Dispatch, July 9, 2008, A6.
Page 91 “I don’t think anyone can say . . .” Sellers, “Bud-Weis-Heir.”
Page 91 “If my brother continues to perform . . .” Ibid.
Page 92 “Every senior Anheuser-Busch officer ...” Al Stamborski, “Anheuser-Busch Chairman Undergoes Heart-Bypass Surgery,” St. Louis Post-Dispatch, September 29, 1999.
Page 92 “He owned just 3.4 million shares . . .” Wells, “Busch IV Likely to Pop to Top.”
Page 92 “Considering the history . . .” Sellers, “Bud-Weis-Heir.”
Page 93 “I wouldn’t operate under the assumption . . .” Wells, “Busch IV Likely to Pop to Top.”
Page 94 “I’m not going to consider . . .” Ibid.
Page 94 “He’s not a character . . .” Khermouch, Forster, and Cady, “Is This Bud for You, August IV?”
Page 95 “Business Week called The Third’s decision . . .” Ibid.
Page 95 “It’s not a foregone conclusion . . .” Ibid.
Page 96 “The goal was for The Fourth ...” General Henry Hugh Shelton, phone interview by author, June 10, 2010.
Page 98 “If this is successful discounting . . .” “Anheuser Profits Fall in Tough Market,” Just-drinks.com, October 27, 2005.
Page 100 “He also added non-alcoholic drinks . . .” Greg Edwards, “Anheuser’s New Chief Faces Challenges,” Wall Street Journal, December 6, 2006, B3G.
Page 100 “The Third’s eyes welled visibly with tears . . .” Mike Beirne, “A-B Marketing Ready to Rumble,” Brandweek (online), March 25, 2005.
Page 101 “His home, which had once been owned . . .” Khermouch, Forster, and Cady, “Is This Bud for You, August IV?”
Page 101 “Their engagement was called off . . .” Ludington, “Bud Man.”
Page 101 “I’m not making predictions . . .” Sellers, “Bud-Weis-Heir.”
Page 102 “The Fourth spent a good amount of time . . .” Jason Horowitz, “The Complete Ron Burkle,” New York Observer, April 12, 2006.
Page 102 “If I don’t start seriously working on a relationship . . .” Wells, “Busch IV Likely to Pop to Top.”
Page 102 “Where’s the cutoff? ...” Ellen Florian Kratz, “A Busch (Beer) Marries for the Corner Office,” Fortune, September 15, 2006.
Page 102 “To the chagrin of some disgruntled locals . . .” Carolyn Kylstra, “Clydesdales Grace Green for Wedding,” The Dartmouth, August 8, 2006.
Page 103 “The Fourth’s decision to get married . . .” Andrew Ward, “Anheuser Keeps Crown in the Family,” Financial Times, December 5, 2006, 28.
Page 103 “It was ‘August, until you settle down . . .” Kratz, “A Busch (Beer) Marries for the Corner Office.”
Page 104 “It also pledged . . .” Christopher Tritto, “A-B Picks up Aircraft, Beer Tabs for Busch IV, Stokes,” St. Louis Business Journal, December 1, 2006.
Page 104 “Stokes made a similar election ...” Anheuser-Busch Companies Securities and Exchange Commission Filing Form 8-K, December 15, 2006.
Page 105 “Beer’s total share of the alcohol market . . .” Edwards, “Anheuser’s Chief Faces New Challenges.”
Page 106 “Mr. Busch now has center stage for himself . . .” Ward, “Anheuser Keeps Crown in the Family.”
Page 107 “The Fourth said in one newspaper interview . . .” David Kesmodel, “Beer Clan Anheuser CEO Fights for His Legacy—As Rival Weighs a Bid, Busch Heir Still Seeks Father’s Approval,” Wall Street Journal, May 27, 2008, A1.
Page 108 “Mr. Busch remains a bit of a mystery . . .” Edwards, “Anheuser’s Chief Faces New Challenges.”
Page 109 “The Fourth spread his net wide . . .” Ward, “Anheuser Keeps Crown in the Family.”
Page 110 “He concluded, “I honestly do believe . . .” Kesmodel, “Beer Clan Anheuser CEO Fights for His Legacy.”
Page 110 “He later regretted making those comments ...” Schuhmacher, phone interview by author, April 27, 2010.
Page 110 “In his first decade . . .” Sellers, “Bud-Weis-Heir.”
Page 110 “The Third, as usual, stayed silent on the matter . . .” Kesmodel, “Beer Clan Anheuser CEO Fights for His Legacy.”
Chapter 6 The Hunter’s Frozen Trigger Finger
Page 113 “We made our share of mistakes . . .” Ellyn E. Spragins, Marc Frons, “When You Say Busch, You’ve Said it All, BusinessWeek, February 17, 1986, 58-63.
Page 117 “The globalization of American culture . . .” “The World Beer & Beverage Forum Power Brands Made by Power Men,” Modern Brewery Age, November 10, 1997. www.entrepreneur.com/tradejournals/article/20216423_2.html.
Page 117 “He weighed the possibility . . .” Rick Hill and Walter Reisinger, Jr., interview by author, St. Louis, Missouri, November 4, 2009.
Page 118 “Two gunmen had unleashed a torrent . . .” Simon Romero, “Cashing In on Security Worries: Bad Times Are Good Times for Car Armorers in Brazil,” New York Times, July 24, 1999.
Page 118 “Lemann moved his family . . .” Tony Smith, “A Bet on a Brazilian Brewery Pays Off for 3 Investors,” New York Times, March 4, 2004, W7.
Page 118 “They funneled a fraction of that cash . . .” Ibid.
Page 119 “Brahma won clearance for the deal ...” “AmBev: Third Largest Brewer Created with Merger Approval,” Food & Drink Weekly, April 3, 2000, 1.
Page 126 “The United States and China were well illuminated . . .” Jeremiah McWilliams, “Brito Begins to Brew New Company: CEO Meets A-B Chief with Eye on Bottom Line, Employee Angst,” St. Louis Post-Dispatch, July 16, 2008, A1.
Chapter 9 Mr. Brito Goes to Washington
Page 162 “In Missouri, where McCain ended up beating Obama . . .” Election Results, New York Times, Tuesday, December 9, 2008.
Page 162 “But this is about something bigger . . .” Heidi N. Moore, “One Couple’s Crusade to Save Budweiser,” WSJ Deal Journal, June 2, 2008.
Page 163 “Cindy McCain, who was known to drive around Phoenix . . .” Susan Davis, “McCains to Profit on Anheuser, InBev Deal,” WSJ Washington Wire, July 14, 2008. http://blogs.wsj.com/washwire/2008/07/14/mccains-to-profit-on-anheuser-inbev-deal/.
Page 165 “Its political action committee ...” Jeffrey H. Birnbaum, “InBev, Anheuser Battle in Washington,” Washington Post, June 28, 2008.
Page 165 “A team of eight Anheuser Clydesdales . . .” “Hey, Bill, This Bud’s for You,” Seattle Times, January 16, 1993, A3.
Page 166 “That put it ahead of other heavily active PACs . . .” The Center for Responsive Politics. https://www.opensecrets.org/pacs/toppacs.php.
Page 167 “It started paying operatives . . .” Birnbaum, “InBev, Anheuser Battle in Wash
ington.”
Page 168 “The meeting adjourned after half an hour . . .” Ibid.
Page 168 “I said, ‘Not going to happen.’ . . .” “McCaskill Questions InBev CEO about Anheuser-Busch,” Associated Press, June 17, 2008.
Page 168 “We do not have a ‘For Sale’ sign on our front lawn in America . . .” Deirdre Shesgreen and Rachel Melcer, “InBev Chief Feels Heat,” St. Louis Post-Dispatch, June 18, 2008, A1.
Page 168 “Brito called his meeting . . .” “McCaskill Questions InBev,” Associated Press.
Page 168 “She issued a letter . . .” Senator Claire McCaskill, “McCaskill Urges Anheuser-Busch Board to Reject Offer,” June 18, 2008. http://mccaskill.senate.gov/newsroom/record.cfm?id=299367.
Page 168 “It would mean job losses . . .” Birnbaum, “InBev, Anheuser Battle in Washington.”
Page 170 “The strongest words spoken against InBev ...” The Colbert Report, Comedy Central. www.comedycentral.com/colbertreport/videos.jhtml?episodeId=174853.
Page 171 “Brito wrote an opinion piece . . .” Carlos Brito, St. Louis Post-Dispatch, June 17, 2008, Commentary.
Page 177 “Advertising Age ran an article . . .” Jeremy Mullman and Michael Bush, “A-B Losing the PR War to InBev,” Advertising Age, July 7, 2008.
Chapter 10 Angry Bedfellows
Page 181 “During a meeting two weeks earlier . . .” Anheuser-Busch 2008 proxy.
Page 184 “If Modelo’s biggest rival was going to tie up . . .” Jack Purnell, phone interview by author, October 29. 2009.
Page 185 “In late 1996 ...” William Flannery, “A-B Invests in Mexican Brewer; Raises Grupo Modelo Stake to 37 Percent,” St. Louis Post-Dispatch, December 19, 1996, 3B.
Page 185 “Three months later . . .” Bloomberg News, “Anheuser-Busch to Increase Stake in Mexican Brewer,” New York Times, May 23, 1997, 3.
Page 190 “By high school, he was working there part-time . . .” David Luhnow and David Kesmodel, “Modelo CEO Faces Limits of Family Firm,” Wall Street Journal, June 27, 2008, B11.
Page 191 “Fernández was elected to Modelo’s board . . .” “Who’s News Anheuser-Busch Cos.,” Wall Street Journal, February 29, 1996.
Page 191 “She decided to throw herself into the family business . . .” Ginger Thompson, “Daddy’s Girl Turns Beer-and-TV Billionaire,” New York Times, July 21, 2002, Saturday Profile, 4.
Page 191 “María proceeded to build a reputation . . .” David Luhnow, “Crashing Barriers,” Wall Street Journal, October 1, 2001, R9.
Page 191 “Known by the nickname Mariasun . . .” Kevin Sullivan, “Bilaterally in Love,” Washington Post, February 7, 2005, C1.
Page 192 “The “golden couple’s” 2005 wedding . . .” Susana Hayward, “‘Golden Couple’ All the Buzz,” Miami Herald, Knight Ridder News Service, February 8, 2005, 16A.
Page 192 “In 2007, just before the global banking system . . .” Luisa Kroll and Allison Fass, “Special Report The World’s Billionaires,” Forbes, www.forbes.com/lists/2007/10/07billionaires_The-Worlds-Billionaires_Rank.html.
Page 194 “He spent Wednesday night prepping . . .” Tom Santel, phone interview by author, June 26, 2010.
Page 197 “By the end of that year . . .” Corporate information provided on Modelo web site (www.gmodelo.com).
Chapter 11 The Board: August, August, and Augusta
Page 204 “The scare tactic worked well . . .” Robert Slater, The Titans of Takeover (Beard Books, 1999), 167.
Page 206 “But The Fourth said he wanted to push ...” Matthew Karnitschnig and David Kesmodel, “Anheuser-Busch Gets a D,” Wall Street Journal Deal Journal, June 16, 2008.
Page 206 “They were trying to change the board . . .” James Forese, phone interview by author, May 26, 2010.
Page 206 “The Third had been one of the AT & T directors . . .” Tim Barker, “Loyalty of A-B Board May Be Put to the Test,” St. Louis Post-Dispatch , June 20, 2008.
Page 208 “So I don’t think there are any questions . . .” Outstanding Directors Exchange Agenda, July 14, 2008 issue. www.theodx.com/outstandingdirectors/Busch%20071408%20Agenda%20issue_fnl.pdf
Page 210 “But on July 11 . . .” CNBC, Julia Boorstin interview with Warren Buffett from Sun Valley, Idaho, July 11, 2008.
Page 210 “They and other directors ...” Margie Manning, “GenAm Board Settles for $30 Million,” St. Louis Business Journal, January 17, 2003.
Page 212 “Citigroup was set to earn . . .” Anheuser-Busch definitive proxy, October 2008.
Page 212 “Anheuser’s directors had known . . .” General Henry Hugh Shelton, phone interview by author, June 10, 2010.
Page 216 “Augusta is famous for its pristine links . . .” “Augusta National Golf Club Members List,” USA Today Projects Staff, August 4, 2004.
Page 218 “At six-foot-four . . .” Roger O. Crockett, “The Last Monopolist,” BusinessWeek, April 12, 1999, Cover story.
Page 219 “Loucks had become an Anheuser-Busch director . . .” Julia Flynn Siler, David Greising, and Tim Smart, “The Case Against Baxter International,” BusinessWeek, October 7, 1991.
Page 223 “So he’s seen all the deals . . .” Outstanding Directors Exchange Agenda, July 14, 2008 issue.
Page 224 “When August IV started . . .” Douglas Warner, phone interview by author, June 14, 2010.
Page 230 “To show that they weren’t stonewalling . . .” Anheuser-Busch press release, June 26, 2008.
Page 231 “I believe that as directors . . .” “Adolphus Busch IV’s Letter to Busch Board,” Reuters, June 20, 2008. www.reuters.com/article/idUSN2044456620080621
Page 231 “Andrew Busch, another half-brother . . .” New York Times DealBook, June 22, 2008.
Page 239 “I was wrong on that statement . . .” Call transcript, http://yahoo.brand.edgar-online.com/EFX_dll/EDGARpro.dll?FetchFilingHtmlSection1?SectionID=6019032-43754-68909&SessionID=C9W3We-yRPmMhz7 .
Chapter 12 The Montagues and the Busches
Page 243 “ [T]heir ability to come along with us . . .” David Kesmodel and David Luhnow, “Anheuser Courts an Ally in Mexico,” Wall Street Journal, June 13, 2008, B1.
Chapter 13 A Seller from “Hello”
Page 257 “Ahead of the previous year’s July Fourth ...” The Beer Institute, “Fourth of July Ranks Tops in U.S. Beer Sales New Data Shows Beer Contributes Billions to National Economy,” press release, June 26, 2007 via PRNewswire.
Page 259 “He had, however, been abruptly replaced . . .” Alex Berenson, “A Long Shot Becomes Pfizer’s Latest Chief Executive,” New York Times, July 29, 2006.
Page 268 “He didn’t push them in one direction . . .” General Henry Hugh Shelton, phone interview by author, June 10, 2010.
Page 271 “Anheuser’s team of dejected executives . . .” Tom Santel, phone interview by author, June 26, 2010.
Page 271 “The following morning, Tom Santel . . .” Ibid.
Chapter 14 Put Up or Shut Up
Page 282 “In order to make that happen . . .” Douglas Warner, phone interview by author, June 14, 2010.
Page 283 “This is going to happen . . .” Ibid.
Page 287 “He’d be a hands-on executive . . .” General Henry Hugh Shelton, phone interview by author, 10, 2010.
Page 287 “Yet after the board promoted him . . .” Ambassador James R. Jones, phone interview by author, June 1, 2010.
Page 289 “The two men circled back . . .” Warner, phone interview by author, June 14, 2010.
Chapter 15 A Long Way from St. Louis
Page 307 “InBev’s record of corporate philanthropy . . .” “Anheuser-Busch’s New Brew,” St. Louis Business Journal, July 31, 2009.
Chapter 16 A Toast on Both Sides
Page 315 “Stokes walked away with $ 160.9 million . . .” Christopher Tritto, “A-B Brass Catch Gold Ring from InBev,” St. Louis Business Journal, November 21, 2008.
Chapter 17 Cash Out or Hunker Down
Page 324 “Rather than hitching a town car . . .” Jeremiah McWilliam
s, “Brito Begins to Brew,” St. Louis Post-Dispatch, July 16, 2008, A1.
Page 325 “The contrast between globe- . . .” Ibid.
Page 326 “And they came on top . . .” “Anheuser-Busch’s New Brew,” St. Louis Business Journal, July 31, 2009.
Page 326 “I just didn’t think . . .” Jeremiah McWilliams, “The New A-B ‘More of What You Need, and Less of What You Don’t,’ ” St. Louis Post-Dispatch, March 8, 2009.
Page 326 “They did so, only to discover . . .” Walter Reisinger, Jr., interview by author, St. Louis, Missouri, November 4, 2009.
Page 327 “Santel, who was paid $26.5 million . . .” Christopher Tritto, “A-B Brass Catch Gold Ring from InBev,” St. Louis Business Journal, November 21, 2008.
Page 328 “We beat the king of commercials . . .” Bruce Horovitz, “ ‘Two Nobodies from Nowhere’ Craft Winning Super Bowl Ad,” USA Today, December 31, 2009.
Page 328 “He stood to earn $20.6 million . . .” Tritto, “A-B Brass Catch Gold Ring from InBev.”
Page 328 “The Fourth’s team had been willing to pay . . .” David Jones, “AB InBev to Buy Modelo This Year; Broker Evolution,” Reuters, March 9, 2010.
Page 329 “Chief Financial Officer Randy Baker . . .” Tritto, “A-B Brass Catch Gold Ring from InBev.”
Page 329 “Anthony Ponturo, who had been the company’s sports marketing head . . .” Ibid.
Page 330 “She said Anheuser-Busch maintained . . .” Jonathan Stempel, “Ex-Anheuser Female Executive Sues for Gender Bias,” Reuters, October 27, 2009.
Page 330 “As he walked into the conference room . . .” McWilliams, “Brito Begins to Brew.”
Page 330 “He didn’t exactly need the cash . . .” Tritto, “A-B Brass Catch Gold Ring from InBev.”
Page 331 “Busch was a no-show at industry events ...” Jeremiah McWilliams, “Busch Slips Off Stage Despite Positioning for Role in InBev Spotlight,” St. Louis Post-Dispatch, August 30, 2009, A1.