Carlton & United Breweries

OVERALL
Owned	BEL
Rating

Beverage manufacturing

Formerly Foster's Group, CUB is currently Australia's #1 brewer (#2 is Kirin owned Lion). Demerged its wine business in 2011 under the name, Treasury Wine Estates. Bought by SABMiller in Dec 2011, ending 100 years of Australian ownership. In 2016 SABMiller was acquired by the world's largest brewer, AB InBev. In 2019 Asahi agreed to buy CUB from AB InBev for $16bn.

Company Ownership

CUB Pty Ltd	AUS	website	email
Anheuser-Busch InBev SA/NV       owns 100% of CUB Pty Ltd	BEL	website	email	facebook	twitter
Brewer InBev acquired Anheuser-Busch in 2008 for US$52 billion, to become the world's largest brewer and one of the world's top five consumer products companies. In 2013 the company acquired the half of Mexico's largest brewer, Grupo Modelo (maker of Corona beer), it didn't already own. In 2016 the company acquired SABMiller for over US$100 billion. AB InBev is part owned by the men behind Brazilian private equity firm 3G Capital, who also own 51% of Burger King and 25% of KraftHeinz.

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Company Assessment

PRAISE	CRITICISM	INFORMATION
CUB Pty Ltd
Australian Packaging Covenant signatory Signatory to the Australian Packaging Covenant, a voluntary agreement to encourage waste minimisation. [Source 2017][More on Packaging]	Industrial action over sacked workers 55 maintenance workers at this company's Abbotsford plant were sacked in 2016 and then told they could reapply for their jobs if they accepted worse conditions and pay cuts of up to 65%. The action has sparked industrial action, community protest, public outcry and boycott calls. [Source 2016][More on Workers Rights] Tax dodging in Australia Between 2013 and 2016 this company paid zero tax on a total income of $7.7 billion, earning the number 19 spot on Michael West's Top 40 Tax Dodgers [retrieved Aug 2018]. West calculated which of Australia's largest companies have paid the least tax, or no tax, on the highest incomes using three years of tax transparency data published by the Australian Tax Office. [Source 2018][More on Finance]	Breaching advertising codes This company has been criticised for offensive advertising. In 2016 the Advertising Standards Bureau upheld complaints about a cinema ad by this company on the grounds that it breached advertising codes. The ad was an image that showed a hand offering a beer to a kangaroo who was reaching out to hold it and the caption 'Kangabrew'. The ad was subsequently discontinued or modified. [Source 2016][More on Irresponsible Marketing] Breaching advertising codes This company has been criticised for offensive advertising. In 2018 the Advertising Standards Bureau upheld complaints about an ad by this company on the grounds that they breached advertising codes. The ads were subsequently discontinued or modified. The ad made fun of people with ginger hair and portrayed them in an inferior manner. [Source 2018][More on Irresponsible Marketing] Sports advertising This company has been criticised for leveraging the popularity of the AFL and NRL to market their alcohol brands to kids. Of the four foreign-owned alcohol companies that have stitched-up the majority of alcohol advertising deals with the AFL and NRL, Carlton & United Breweries has the most advertising deals. [Source 2019][More on Irresponsible Marketing] Apple concentrate from China This company is Australia's largest cider producer. Most of the apple concentrate used to make this cider is imported from China. [Source 2015][More on Governance] Misleading labelling In 2014 CUB was fined $20,400 and provided an undertaking to the ACCC for representing that its Byron Bay Pale Lager was brewed by a small brewer in Byron Bay when this wasn't so. CUB agreed to cease distribution of product with the misleading labelling, and place corrective notices. [Source 2014][More on Governance] 100% renewable energy In March 2018 CUB announced it will source 100 per cent of its electricity from renewables, after signing a 12-year Power Purchase Agreement (PPA) with German renewable energy developer, service provider and wholesaler, BayWa r.e. [Source 2018][More on Climate Change] Greenfleet supporter This company works with the not-for-profit organisation Greenfleet to calculate and offset emissions from flights and their fleet of vehicles. This company has earned the Greenfleet Huon Award, for consistently offsetting emissions for five years and over. [Source 2015][More on Climate Change] GM-free Australian-made brands Brands owned by this company were rated 'green' in Greenpeace's 2010 Truefood Guide, signifying a clear policy on excluding GM-derived ingredients, including oils derived from GM crops, and animal products from animals fed on GM crops. Imported products are not necessarily GM-free. [Source 2010][More on Genetic Engineering] ABAC signatory This company has signed the ABAC Responsible Alcohol Marketing Code, which is designed to regulate alcohol advertising and marketing within Australia. [Source 2017][More on Irresponsible Marketing] DrinkWise contributor This company makes voluntary contributions to DrinkWise Australia, a not-for-profit organisation established in 2005 by the alcohol industry, whose stated goal is to help bring about a healthier and safer drinking culture in Australia. [Source 2015][More on Irresponsible Marketing] Sustainability claims This company has implemented the Sustainable Development policy framework of its parent company, SABMiller, which consists of 10 policy areas including alcohol responsibility, water, energy and carbon, packaging, waste, human rights, and transparency and ethics. [Source 2015][More on Sustainability Reporting] Alcohol - direct involvement Directly involved in the manufacture, distribution or sale of alcohol as a core business. [More on Product Safety]
Anheuser-Busch InBev SA/NV
CDP Water Security Score of A- In 2018, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to manage and govern freshwater resources. Responding companies are scored on six key metrics: transparency; governance & strategy; measuring & monitoring; risk assessment; targets & goals; and value chain engagement. This company received a CDP Water Security Score of A-. [Source 2018][More on Human Rights] CDP Climate Change Score of B In 2018, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to reduce greenhouse gas emissions and mitigate climate change risk. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Climate Change Score of B. [Source 2018][More on Climate Change]	Supply chain practices in China This company received a score of 9.5/100 (retrieved 14-Feb-2018) in the Corporate Information Transparency Index (CITI), a system for evaluating supply chain practices in China, particularly in regards to environmental management and water pollution. Scores are calculated using government compliance data, online monitoring data, and third-party environmental audits, as well as trends in the environmental performance of factories in the company's supply chains. [Source 2018][More on Habitats] Conflict minerals rating As You Sow's 2018 report, Mining the Disclosures, is a deep analysis of 206 companies' human rights performance in relation to sourcing conflict minerals from the Democratic Republic of the Congo (DRC). This company's score was below 40% (Weak). [Source 2018][More on Human Rights] 7.9% in Newsweek Green Ranking 2017 This company received a score of 7.9/100 in the Newsweek Green Ranking 2017, which ranks the world's largest publicly traded companies on eight indicators covering energy, greenhouse gases, water, waste, fines and penalties, linking executive pay to sustainability targets, board-level committee oversight of environmental issues and third-party audits. Ranking methodology by Corporate Knights and HIP Investor. [Source 2017][More on Sustainability Reporting] Human Rights Benchmark The 2017 Corporate Human Rights Benchmark assessed 98 of the largest publicly traded companies in the world from the Agricultural Products, Apparel and Extractives sectors on 100 human rights indicators. This company's score was in the 20-29 band range. The overall average score was 28.7%. [Source 2017][More on Human Rights] Political donations This company is on OpenSecrets.org's list of the 100 top donor organisations in US federal-level politics since 1989. Companies on this list lobby and spend big, with large sums sent to candidates, parties and leadership PACs. This company comes in at number 100 on the list, with donations totalling US$22,467,694 between 1989 and 2018. [Source 2018][More on Politics] Fined for misconduct In 2016 the U.S. Securities and Exchange Commission announced that Anheuser-Busch InBev agreed to pay $6 million to settle charges that it violated the Foreign Corrupt Practices Act (FCPA) and chilled a whistleblower who reported the misconduct. An SEC investigation found that the company used third-party sales promoters to make improper payments to government officials in India to increase the sales and production of Anheuser-Busch InBev products in that country. [Source 2016][More on Governance] Fined for restrictive practices in Europe In 2019 the European Union fined this company 200 million euros for hindering cheaper imports of its Jupiler beer from the Netherlands into Belgium. The commission concluded that the company abused its dominant position from February 2009 until October 2016 in breach of EU antitrust rules. [Source 2019][More on Governance]	CSR practices A 2013 peer-reviewed report indentified three CSR tactics employed by alcohol companies (including this one) which are closely tied in with the industry's underlying corporate intents. First, the alcohol manufacturers employ CSR as a means to frame issues, define problems and guide policy debates. In doing this, the alcohol companies are able to deflect and shift the blame from those who manufacture and promote alcoholic products to those who consume them. Second, the alcohol corporations promote CSR initiatives on voluntary regulation in order to delay and offset alcohol control legislation. Third, the alcohol corporations undertake philanthropic sponsorships as a means of indirect brand marketing as well as gaining preferential access to emerging alcohol markets [Source 2013][More on Irresponsible Marketing] Governance Criticisms include layoffs and payment delays to suppliers as a result of the InBev takeover of Anheuser-Busch, fighting a bill in 2005 that would combat underage alcohol consumption, political donations, and pollution. [Source 2010][More on Governance] Excessive executive bonuses Politicians and unions have criticised executive bonuses totaling more than 1 billion euros at AB InBev triggered when the brewer cut its huge debt two years ahead of target following the acquisition of the maker of Budweiser. [Source 2012][More on Finance] Climate action commitments As listed on the We Mean Business website, this company has committed to the following climate action initiatives: commit to 100% renewable power. [Source 2017][More on Climate Change] Environmental Goals AB InBev set 3 year environmental goals in 2009 which resulted in an 18.6% reduction in water use, a 15.7% decrease in carbon emissions and an increase in the recycling rate for solid waste and by-products from 98.2% to 99.2% by 2012. [Source 2012][More on Environmental Claims] Gender equality This company was included in Bloomberg's 2019 Gender-Equality Index, a list of 230 companies committed to transparency in gender reporting and advancing women's equality in the workplace. [Source 2019][More on Human Rights] Sustainable Food Laboratory member The Sustainable Food Lab is a network of business, public sector, and civil society leaders from around the globe who are working together to accelerate sustainability in mainstream food and agriculture. [Source 2016][More on Multi-Stakeholder Initiatives] Circular Economy 100 member This company is a member of the Circular Economy 100 (CE100) Network, a multi-stakeholder platform run by the Ellen MacArthur Foundation. The CE100 is the world's leading circular economy network, and facilitates market making by providing collaborative and pre-competitive opportunities which bring together business, innovators, cities and governments, universities, and thought leaders. [Source 2019][More on Multi-Stakeholder Initiatives] Water risk management In their 2017 report 'Feeding Ourselves Thirsty', Ceres looks at how food sector companies are responding to water risks. 42 companies were assessed on a 0-100 point basis across four categories of water management: governance and strategy, direct operations, manufacturing supply chain and agricultural supply chain. This company received a score of 43/100. [Source 2017][More on Habitats] 'C' rating at rankabrand.org Rank a Brand searches the websites of brands for the answers to carefully targeted questions. From this they calculate sustainability scores based on the themes of environment, climate, labor issues, and transparency. Brands owned by this company received a 'C'. [Source 2016][More on Sustainability Reporting]

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SABMiller acquired by AB InBev
6th Oct 2016 — SABMiller shareholders have backed a multi-billion dollar takeover by brewer AB InBev. Shareholders voted overwhelmingly in favour, with 95.5% of minority investors approving the deal, providing a clear victory for AB InBev. The deal is expected to be complete by 10 October.

The takeover will mean that AB InBev, which is already the world's largest brewer, will sell one in four beers worldwide. This includes beer and cider brands owned by Carlton & United Breweries including Cascade, Strongbow, Stella Artois, Pure Blonde and Dirty Granny cider. The deal has dropped Carlton & United Breweries Shop Ethical! rating from a C to an F.

See more on the social and environmental track record of AB InBev at the Shop Ethical! company profile page.

SABMiller bid to acquire Foster's
23rd Jun 2011 — The United Kingdom's SAB Miller plans to buyout Australia's largest brewer, the Foster's Group (formerly Carlton and United Breweries) for $A 12.22 billion. The deal would partly put the London-listed brewer in a strategic position to grab the market from Belgium-based Anheuser-Busch inBev.  [source]

Fosters demerger
3rd Aug 2010 — Fosters demerger of its beer and its struggling wine division will be finalised in the first half of 2011. Its struggling wine division will be listed as a new entity called "Treasury Wine Estates". Japan's Asahi Breweries, Belgium's AB InBev, USA's SABMiller and Coca-Cola Amatil are all rumoured to be interested in buying Fosters beer division after the demerger.   [source]