Dethroning the King
Page 43
Page 332 “Secretaries were fired . . .” “Brazilian Style at the Largest Brewery in the World,” Exame, February 2010.
Page 332 “I can buy my own beer . . .” Ibid.
Page 332 “Even expenses like color printing . . .” Jeremiah McWilliams, “The New A-B.”
Page 332 “Roughly a year and a half after the deal closed . . .” Kelsey Volkmann, “Anheuser-Busch Adds Fee for Clydesdales Appearances,” St. Louis Business Journal, April 12, 2010.
Page 333 “One vendor of beechwood chips lost out . . .” “Anheuser-Busch’s New Brew.”
Page 334 “Schlafly’s founder said . . .” “Brazilian Style at the Largest Brewery in the World.”
Page 333 “InBev still used the Anheuser jets . . .” Todd C. Frankel, “A-B Jets Linger as Clipped Wings,” St. Louis Post-Dispatch, January 10, 2010, A1.
Page 335 “Anheuser’s St. Louis employees . . .” “Brazilian Style at the Largest Brewery in the World.”
Page 336 “Brito was poised to pull in . . .” Ibid.
Page 336 “Out of their estimated $50 million . . .” J.P. Morgan research, “Anheuser Busch InBev,” January 26, 2009.
Page 336 “Weiss relocated from Paris . . .” Liam Vaughan, “Lazard’s Weiss Is Year’s Busiest Banker,” Mergermarket, as quoted in Wall Street Journal, December 14, 2009.
Page 337 “At this point, we think . . .” “Credit Market Instability Rattles InBev’s Takeover of Anheuser-Busch,” St. Louis Business Journal, citing Ann Gilpin, Morningstar, October 3, 2008.
Page 338 “The ruling confirmed . . .” Clementine Fletcher, “AB InBev Wins Dispute Over Ownership of Modelo Stake,” Bloomberg, July 12, 2010.
Page 339 “All together, a scrap heap of $660 billion . . .” Serena Saitto, “Goldman Leads in M&A as InBev Deal Fails to Add Fizz to Fees,” Bloomberg, March 2, 2009.
Page 340 “Sandy was the perfect guy . . .” Heather Wolf, “Sandy Warner The Stalwart Director,” Outstanding Directors Exchange. www.theodx.com/outstandingdirectors/WarnerSandy%20OD%20web.pdf.
Epilogue
Page 343 “They did so separately ...” Jeremiah McWilliams, “Busch Slips Off Stage Despite Positioning for Role in InBev Spotlight,” St. Louis Post-Dispatch, August 31, 2009, A1.
Page 344 “Let’s go get ’em! . . .” Ibid.
Page 344 “She Was His Wife . . .” Riverfronttimes.com, January 30, 2009.
Page 344 “A gossip column in the local paper reported . . .” Deb Peterson, “Wonder What August Busch IV Has Been Up To?” St. Louis Post-Dispatch, September 28, 2009.
Page 346 “Gussie and The Third didn’t speak . . .” David Kesmodel, “Beer Clan Anheuser CEO Fights for His Legacy,” Wall Street Journal, May 27, 2008, A1.
Acknowledgments
A few people who aren’t brewers or bankers nonetheless contributed immensely to my ability to get this book onto store shelves. My heartfelt thanks go to my agent, Andy McNicol, at William Morris Endeavor, and to Pamela van Giessen and Emilie Herman at John Wiley & Sons.
I’m boundlessly grateful to my husband, Micah Levin, for serving as baby bather, proofreader, chef, and cheerleader at various points during the book-writing process, and to my son, Miller, for his patience and joyfully sunny disposition right from the start.
I must also thank the rest of my family—James and Faye MacIntosh; Emily, Trevor, and Ella Fetters; and Kate MacIntosh, Karl Donner, Paul MacIntosh, Daniel Levin, Judith Karlen, Sherry Levin, James Friedberg, Brendan Levin, Tonya Fletcher, and Erin Levin—for providing such a tightly woven safety net. I hope I can return the favor. My profuse apologies go out to them and to all of the friends and colleagues I was remiss in contacting for a while.
I’m also grateful to the journalists at the Financial Times in New York (and to Francesco Guerrera in particular), who were willing to pinch-hit in my absence during my book leave, and to Dr. Jason Rothbart, for easing my family through an unexpectedly hasty transition to California living.
About the Author
Julie MacIntosh covered the takeover of Anheuser-Busch while working as a correspondent for the Financial Times, based in New York. Prior to her work covering mergers and acquisitions for the paper, she wrote for the Financial Times’ influential Lex column. Julie studied as a Knight-Bagehot Fellow in business journalism at Columbia University and, upon completing the Fellowship and earning a Master of Science in Journalism from Columbia’s Graduate School of Journalism, then earned a Master of Business Administration from Columbia’s Graduate School of Business. Julie also spent six years as a reporter and correspondent for Reuters, in New York and Chicago. She received her undergraduate degree from the Medill School of Journalism at Northwestern University.
Julie, who was raised in the fruit- and wine-growing region of Traverse City, Michigan, always preferred the vineyards of Napa, Sonoma, and Tuscany to the breweries of St. Louis and Milwaukee, but writing this book instilled in her a new respect for brewers’ pride.
Index
A-B. See Anheuser-Busch (A-B)
Abercrombie & Kent
Ackman, Bill
Advertisements of A-B
Budweiser as King of Beers
Budweiser blimp
Budweiser “Frogs” campaign
cuts in budget
D’Arcy loses A-B account
distributor conventions
“Know When to Say When” moderation campaign
Louie the Lizard
market share and
overspending on
sports sponsorships
Super Bowl
underage drinkers and
USA Today Ad Meter polls
“Wassup?!” ad campaign
Aethena Group, The
“Air Bud,”
Akin Gump Strauss Hauer & Feld
Almeida, David
Altria
AmBev:
merger with Interbrew
origins of
American Bankers Association
American Hospital Supply Corp.
American Stock Exchange
Ameritech
Anchor Glass Container Corporation
Anheuser-Busch (A-B):
advertisements (see Advertisements of A-B)
beer wars with Miller Brewing
board of directors (see Board of directors of A-B)
Busch family lack of control
corporate culture under The Fourth
corporate culture under The Third
corporate security staff
cost-cutting program
culture clashes with Grupo Modelo
distribution system
diversification efforts
executive dining room
founding of company
free-spending habits
global expansion opportunities
global financial crisis of 2007-2009
graft scandal
hangar at Spirit of St. Louis Airport
InBev lawsuit to overturn A-B board of directors
InBev takeover threat (see InBev takeover threat)
job cuts
Lake of the Ozarks compound
lobbying activities
loose merger plan with InBev
market share
merger and acquisition activities
merger discussions with Grupo Modelo
merger discussions with InBev
merger with InBev
partnership with InBev
Project Montague
pulls back from merger discussions with Modelo
renamed Anheuser-Busch InBev
stake in Grupo Modelo
strategy committee
succession plans
vulnerability to takeover
Anheuser-Busch Entertainment
Anheuser-Busch Soccer Park
Animatronics
Antarctica
Antitrust regulation
AON Center (Chicago)
Apple
Aquila, Francis:
; InBev/A-B merger
InBev/A-B takeover threat
Aramburuzabala, Pablo
Aramburuzabala Larregui de Garza, María Asunción “Mariasun,”
ArvinMeritor
ASU (“A Sense of Urgency”)
Athanas, Evan
AT&T
Augie. See Busch, August A. III “Augie/ The Third/The Chief ”
August A. Busch Conservation Nature Center
August A. Busch Shooting Range
Augusta National Golf Club
Avon
Baker, W. Randolph “Randy”:
as CFO
cost-cutting measures
InBev/A-B merger
InBev/A-B takeover threat
Ball, Lucille
Ball Corporation
Banco Nacional de Mexico (Banamex)
Banco Santander
Bank of America
Baxter International
BCE
“Bear hug” strategy
Bear Stearns
Beck’s
Beer Institute
Beer Marketer’s Insights
“Beer occasions,”
“Beer wars,”
Belushi, John
Berle, Milton
Bevcon
Birra Peroni
Blackstone Group
Blue Ocean program
Board of directors of A-B
at A-B Cancun, Mexico conference (2007)
A-B stake in Grupo Modelo
approval of merger with InBev
Augusta connection
company vulnerability to takeover
conflicts of interest
cost-cutting program
father-son dynamics and
fees paid
InBev/A-B takeover threat
InBev attempt to eject
InBev offer of higher price
independent directors
management style of The Third
meeting format
merger discussions with Modelo
paranoia about lawsuits
strategy committee
summary of members
Bond, Christopher “Kit,”
Boord, John
Bostock, Roy
Botín, Emilio
Bowl Championship Series
Brahma
BrandFinance
Branson, Richard
Braunstein, Douglas:
InBev/A-B merger
InBev/A-B merger discussions
InBev/A-B takeover threat
Breaux, John
Brewers & Maltsters union
Brito, Carlos:
as CEO of InBev
InBev/A-B merger
InBev/A-B merger discussions
InBev/A-B takeover threat
InBev offer of higher price for A-B
inside knowledge of Anheuser-Busch
loose merger plan with A-B
management style
price increase for A-B
visit to Washington, D.C.
Brock, John
Brunswick Group
Bud Dry
Budejovicky Budvar
Bud Light
Budweiser beer
Bud Dry
Bud Light
global growth
as King of Beers
Budweiser blimp
Buffett, Warren
as A-B shareholder
connection to InBev
sale of A-B stock
Tony Lama boots and
Burkle, Ronald
Busch, Adolphus (founder of A-B)
Busch, Adolphus III (brother of Gussie)
Busch, Adolphus IV (half-brother of The Third)
Busch, Andrew (half-brother of The Third)
Busch, August A. III “Augie/ The Third/The Chief ”:
becomes president of A-B
beer marketing/branding and
birth
as brand manager
“Busch time” and
Cancun, Mexico conference with bankers (2007)
corporate culture under
described
diversification efforts
dynamic with father, Gussie
dynamic with son, The Fourth
“eaters,”
education of
family background
Grupo Modelo deal and
health crisis
InBev/A-B merger
InBev/A-B takeover threat and
insular world view
lack of trust
lobbying activities
love of flying
management style
marriages of
modernization campaign
as paid consultant
public scandals
resistance to expansion
retirement plans
self-transformation
succession plans
Teamsters strike
youthful antics
Busch, August A. IV “The Fourth”:
A-B vulnerability to takeover
Cancun, Mexico conference with bankers (2007)
corporate culture under
cost-cutting measures
described
distance from company operations
dynamic with father, The Third
early years with A-B
education of
on FedEx board
“Frogs” advertising campaign
Grupo Modelo deal and
as head of brewing division
InBev/A-B merger
InBev/A-B merger discussions
InBev/A-B takeover threat and
loose merger plan with InBev
love of hunting
management style
marketing skills of
marriage of
openness to merger ideas
as president and CEO
resistance to debt
succession plans
as vice president of marketing
“Wassup?!” ad campaign
womanizing and
youthful antics
Busch, August Anheuser Busch Jr. “Gussie/Junior,”
death
described
dynamic with son, The Third
forced out of company
as head of A-B
Busch, Billy (half-brother of The Third)
Busch, Gertrude (wife of Gussie)
Busch, Kathryn Thatcher (wife of The Fourth)
Busch, Peter (son of Gussie)
Busch, Steven (son of The Third)
Busch, Susan Hornibeck (wife of The Third)
Busch, Susie (daughter of The Third)
Busch, Trudy (wife of Gussie)
Busch, Virginia Lee Wiley “Ginny” (wife of The Third)
Busch Bavarian beer
Busch beer
Busch Gardens (Florida)
Busch Gardens (Virginia)
Busch Stadium
Busch Student Center (St. Louis University)
Bush, George H. W.
Bush, George W.
Bush, Laura
Cadbury
Cady, John
Cameron, David
Campbell Taggart
Canada
Captain Morgan
Caray, Harry
Caray, Marion
Cardinals
Chapin, Allan
Chase Manhattan Bank
Chicago Blackhawks
Chicago Cubs
Chicago White Sox
Chief, The. See Busch, August A. III “Augie/ The Third/The Chief ”
China
Chrysler
Citigroup
at A-B Cancun, Mexico conference (2007)
A-B vulnerability to takeover
acquisition of Banco Nacional de Mexico (Banamex)
Grupo Modelo and
InBev/A-B merger
InBev/A-B takeover rumors
InBev/A-B takeover threat
Modelo/A-B merger discussions
Clagg
ett, Charlie:
advertising and
on the Busch family
on The Fourth
“Know When to Way When” moderation campaign
on The Third
“This Bud’s for You” slogan
Clifford Chance
Clinton, Bill
Clinton, Hillary
Clyburn, James
Clydesdales
Cogut, Charles “Casey,”
Cohen, H. Rodgin
Colbert, Stephen
Comedy Central
Coors, Adolph
Coors, Peter
Coors, William K.
Coors beer
Coors Light
Coors Brewing Company
Coors Light
Corona
Corona Extra
Corporate Library, The
Coulis, Marlene
Cravath, Swaine & Moore
Credit Suisse First Boston
Cristerna, Hernan
Cuba
D’Arcy
Budweiser “Frogs” campaign
loses A-B account
Dassault
Davies, Thomas
Davis, Sammy Jr.
DDB Needham
Descheemaeker, Stéfan
Deutsche Bank
Devlin, Nina
Diageo
Díez, Valentín
Dimon, Jamie
Disney
Dow Chemical
Dow Jones
Dubai Ports World
Eagle Snacks
Edmond, Louis Fernando
Elizabeth II, Queen of England
Emerson Electric
Enterprise Rent-A-Car
ESPN
Excise tax on alcohol
“Fan cans,”
Fannie Mae
Federal Trade Commission
FedEx Corp.
Fernández González, Carlos:
on A-B board
at A-B Cancun, Mexico conference (2007)
as CEO of Grupo Modelo
InBev/A-B takeover threat
merger discussions with A-B
as proposed CEO after Modelo/A-B merger
relationship with The Third
resignation from A-B board
Fernández Rodríguez, Antonino
Fidelity
Finnie, William “Bill”:
on acquisition activities
on the Busch family
on The Fourth
on Teamsters strike
on The Third
Flom, Joseph:
InBev/A-B merger
InBev/A-B takeover threat
Modelo/A-B merger discussions
Focus groups
Folgers
Fomento Económico Mexicano SA (FEMSA)
Ford, William C.
Ford Motor Company
Forese, James, J., Sr.: