THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, April 27, 1995 TAG: 9504270370
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
DATELINE: WILLIAMSBURG LENGTH: Medium: 77 lines
The Rev. Robert James Current traveled 3,000 miles from California to ask the country's leading beer maker to think about kids.
He and representatives from religious orders and substance-abuse prevention programs appealed to Anheuser-Busch Cos. Inc. stockholders at their annual meeting Wednesday to study whether beer advertising encourages teens to drink.
The religious delegation failed to force the company to do some soul-searching, but they did get their message across.
``Why are we here? Because Anheuser-Busch is an industry leader. We believe leaders lead. We need you to be a responsible part of our communities,'' said Current, pastor of the Novato United Methodist Church. ``We're losing our youth.''
The religious delegation of a dozen garnered support from Anheuser-Busch shareholders who control 12.4 million shares, or 5.98 percent, of the company's stock. That's just shy of the 6 percent needed to raise the issue at another stockholders meeting.
Comments from the delegation advocating less marketing to youth dominated more than a quarter of the two-hour meeting, held a few miles from Colonial Williamsburg and next to the company's brewery and Busch Gardens theme park.
Members of the delegation addressed the firm's TV spots, mascots and props such as ``Budman'' and Spuds McKenzie, posters and Halloween masks.
``We have to teach our children how to protect themselves against these kinds of ads,'' said the Rev.Estes Brown, pastor of the Brightwood Park United Methodist Church in Washington. ``Your ads are everywhere.''
The corporation's staff answered the delegation with its own extensive presentation on its efforts - to the tune of approximately $12 million each year - to educate underage drinkers of the dangers of alcohol abuse.
Company officials cited studies showing that advertising does not cause youth to drink. Surveys from the inspector general say that young people are influenced most by their parents (61 percent) and then their friends (21 percent) and then ads (5 percent).
After the meeting, proponents of the beer-marketing study proposal acknowledged their disappointment, but cheered the company for its willingness to talk.
``We didn't expect to win,'' Current said. ``Honestly, the reason why we're here is because Anheuser-Busch is one of the friendlier companies in this regard. They're doing more than the industry in this regard.''
The discussion clouded a day of otherwise very good news for company shareholders. The diversified beverage and food manufacturer reported its 18th consecutive year of record sales and another concerted push to expand into the international market.
Anheuser-Busch's gross sales topped $3.1 billion in 1995, up 4.3 percent from the year-earlier period.
Its net sales rose to $2.76 billion, up 4.9 percent, during the first quarter of 1995. Net income increased to $216 million, compared with $204 million from the year earlier period.
The company attributed higher sales to greater volumes of beer sold and stronger sales by its packaging subsidiaries. It hopes to increase its market share of beer sales in the United States from 44.5 percent to 50 percent by the year 2000.
The company recently gained a 25 percent stake in the Red Hook microbrewery in Seattle, an example of its endeavors to improve its standing in the specialty beer market. Globally, Anheuser-Busch has invested in various breweries, including China's Tsingtao and Grupo Modelo in Mexico.
``We see international expansion as our best method of growth,'' Chairman August A. Busch III told shareholders. ILLUSTRATION: Color photo
Bottle of Budweiser Beer
KEYWORDS: BEER RELIGION by CNB