On Saturday, July 12, news broke that multinational brewing giant InBev had purchased Anheuser-Busch, Inc. The $52-billion deal spells the end of local control for the beer maker, which was for generations an economic cornerstone of the St. Louis region; a source of civic pride and a major patron of many area institutions-including Saint Louis University. In the aftermath of the announcement, many at SLU and around St. Louis are reflecting on the company’s legacy and imagining a world without A-B.
A-B was a major donor to SLU, and the legacy of the company’s financial contributions to the University may be seen around campus. The brewery has its name on the Busch Student Center, the Anheuser-Busch Auditorium in the John Cook School of Business and the Anheuser-Busch Institute at SLU Hospital. Even a wing in the Pius XII Memorial Library is named after the beer maker.
Provost Joe Weixlmann, Ph.D., said that the Busch family has been “great friends of Saint Louis University.”
“From Busch Student Center to the singing of ‘When You Say ‘Bud’ at SLU basketball games, the impact of the Busch family and company on this campus is tangibly felt and wholeheartedly appreciated,” Weixlmann said.
“Whatever may lie ahead for the company, we can be certain that the many generous contributions of the Busch family-and of the larger A-B family and community-will continue to have an enduring and decidedly favorable impact on the students, faculty and staff at SLU.”
InBev has announced that it will cut more than $1.5 billion from operations by 2010. It plans to sell off assets such as Busch Gardens and Sea World, cut pensions and benefits and lay off employees to increase profits. InBev CEO Carlos Brito says he plans to keep all 12 breweries open in the United States, and St. Louis will become the company’s North American headquarters. The famous Clydesdales horses, icons of the comapny, are also here to stay, for now.
The buyout has some concerned about how the philanthropic arm of the company will fare.
A-B has given more than $350 million to various organizations, including SLU. InBev said it plans to continue A-B’s tradition of giving back but did not disclose how annual giving might be affected.
A spokesperson from the University’s Annual Giving Program said the exact amount given by A-B to SLU was confidential, but did say that it has been “generous.”
Ellen Harshman, Ph.D., dean of the John Cook School of Business, said that she is not surprised InBev sought to buy A-B.
“In the financial position they are in, it makes them vulnerable, and the [value of the U.S.] dollar encourages foreign investment,” Harshman said.
“They want an entry into the U.S. marketplace, and for them this is huge.”
Harshman also indicated that the deal would be “in no way good for St. Louis,” and she said she was “saddened” to see the loss of hometown headquarters. “It’s going to be different if this isn’t [A-B’s] home.”
Harshman said that she also worries that the loss of a Fortune 500 company from St. Louis could hurt recruiting for the business school. She said that the number of Fortune 500 companies in the city is a great selling point for the school. A Fortune 500 company is one of the top 500 annual grossing companies in the United States.
Not only has SLU benefited from A-B, but manyl graduates of SLU have gone on to work for the company. A notable example of this is the president and CEO of Anheuser-Busch, August Busch IV, who graduated magna cum laude from the business school at SLU.
