Anheuser-Busch Asked to Back Up its Advertising Claims.

WASHINGTON--(BUSINESS WIRE)--April 25, 1996--The following was released today by the Truth in Brewing Associates:

Do you get your money's worth when you order a tall cold one? This is the question asked by a group dedicated to keeping the nation's beer brewers honest in the promotion and advertising of their products. It is now up to the nation's largest brewing company, Anheuser-Busch, maker of Budweiser, to come up with the answer.

Truth in Brewing Associates Inc. today filed a petition with the Bureau of Alcohol, Tobacco and & Firearms (BATF) asking that the bureau enforce its own rules regarding beer labeling and advertising. It is the role of the BATF to ensure that consumers are not misled by the brewers through inaccurate labeling and marketing practices.

The law clearly prohibits any statements that, even if not false, "tend to create a misleading impression." When such statements are made, BATF may discipline the brewers and, when appropriate, may revoke the brewer's Certificate of Label Approval. In effect, BATF may punish the brewer by prohibiting sales of its beer.

Anheuser-Busch, maker of many well-know brands of beer, including Budweiser, the "King of Beers," is being asked by the Truth in Brewing Associates to put its money where its mouth is. Promoting its Budweiser products, Anheuser-Busch uses the phrase "we know of no brand produced by any other brewer which costs so much to brew and age."

Truth in Brewing Associates asks Anheuser-Busch to disclose the basis for its claim. How many other brewers were asked about their production costs? How many other brewers were asked about their ingredient costs? And how much exactly does it cost to brew and age Budweiser, one of the less expensive brands on the market?

Anheuser-Busch is one of the largest brewers in the world. Basic economic factors indicate that, contrary to Anheuser-Busch's claim, their production costs are, if anything, lower than that of its competitors. While other large brewers may approximate the cost savings realized by Anheuser-Busch, the smaller craft breweries and micro-breweries do not and cannot do so. Plainly, the claims made by Anheuser-Busch, unless verified, are dubious at best.

How does it affect consumers? There are hundreds of choices a consumer has when it comes to beer. With the explosion in craft and micro-breweries that has taken place over the past few years, a consumer cannot help but rely on information provided by the brewers in order to make an intelligent and informed choice. It is, therefore, especially important that this information be accurate and truthful.

But there is more than that. That this information be accurate and truthful is also required by law! Federal law not only prohibits making any claims that are false, but it also prohibits making any claims that are misleading. If Anheuser-Busch conducted research that backs up its claim, and if Anheuser-Busch is willing to make this research public and if Anheuser-Busch can prove that it was not their intention to mislead the consumers, then the law will be satisfied. But that is a lot of "ifs!"

Truth in Brewing Associates is asking that BATF enforce the law and require Anheuser-Busch to disclose the basis for their claims. Absent such disclosure, it is in the interest of the consuming public to be informed that Anheuser-Busch claims are unfounded.

It is not only a matter of what is right. It is also a matter of dollars and cents. Brewers cannot profit from misleading the public and the consumers have the right to expect not to be misled. Everyone benefits when truth prevails, even if it is only a matter of a cool beer on a hot day.

CONTACT: Robert B. Nealon, 716-248-9142, for the Truth in

Brewing Associates