This is who I am.

In 2005, Anheuser-Busch soldmore than 2.5 times the volumeof the second-largest brewer inthe United States.

Anheuser-Busch is the leading

brewer in the United States, with a

48.8%market share.

Domestic Beer Operations

Since its founding more than 150 years ago, Anheuser-Busch has been a leader in the beer industry.With nearly 50 percent of the U.S. domestic marketshare, a portfolio of more than 40 brands, and 12 breweries strategically located throughout the United States, Anheuser-Busch has the resources in place to enhance beer industry volume, while continuingto meet the changing needs of today’s consumer.

Despite a challenging year for the brewing industry,beer remains the most-consumed alcohol beverage byadults in the United States by a wide margin, repre-senting 57 percent of alcohol beverage servings. In2005, Anheuser-Busch shipped 101 million barrels, more than 2.5 times its closest domestic competitor, and its U.S. market share was 48.8 percent.

In 2005, Budweiser family sales-to-retailers were upnearly 2 percent and gained almost one share point insupermarkets, according to IRI data. Anheuser-Busch’sdomestic beer shipments to wholesalers declined1.8 percent as wholesaler inventories were reducedsignificantly. Domestic wholesaler sales-to-retailersincreased 0.2 percent, selling day adjusted, for the year.

Sales-to-retailers improved significantly in thesecond half of 2005. Anheuser-Busch is focused onsustaining this momentum by executing its key strategies:

Elevating and enhancing the image and relevance of beer Making our brands the preferred beer choice

As the industry leader, Anheuser-Busch will leveragehighly targeted marketing and innovative products andpackages to make great beer…and make beer great.

This is beer…The company’s trademark brand families — Budweiser,Michelob, Busch and Natural — play a key strategicrole as the volume drivers of the company. Marketingfor these brands focuses on their unique imagery andproduct points of difference. New advertising, such as Budweiser’s “Anthem” campaign, helped to reenergizeand reinforce the brand experience in 2005, establishinga strong image and quality foundation for the entireBudweiser family.

Budweiser continues to be Anheuser-Busch’s flagshipbrand. In 2005, Budweiser brought the world-famousClydesdales to communities across the United Statesduring the “Clydesdales Across America Here’s to theHeroes Tour.” The 28-city tour honored America’s military with an interactive display and mobile studiowhere visitors could record personal messages to share with the U.S. military, courtesy of Budweiser.More than 13,000 Americans recorded messages thatreached their loved ones through Armed Forces Radioand Television Service at U.S. military outposts in more than 177 countries. The exhibit also chronicledAnheuser-Busch’s 150-year commitment to the military.

This is beer.

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Domestic Beer Operations

drink recipes that feature beer as the primary ingredient.

As part of its commitment to creating new beverages that appeal to today’s adult consumer,Anheuser-Busch formed theInnovation Group, charged withdeveloping new beverages throughbrand extensions and beer categoryexpansion. New offerings includemalt beverages, flavored beers, andbeers such as BE, which combinesfruit flavors with caffeine andguarana. Another new malt brand,Tilt, debuted nationally in 2005 andfeatured a blend of caffeine, guaranaand ginseng. The Bacardi family of flavored alcohol malt beveragesalso added two new flavors —Bacardi Silver Big Apple and BacardiSilver Strawberry — adding to thebrand’s refreshing lineup.

Seasonal beer offerings wereintroduced in 2005, with plans forfurther expansion in 2006. Togenerate excitement in the draughtcategory, Anheuser-Busch introduceda series of limited edition seasonaldraught brews. The MichelobSpecialty Sampler Collection offereda full line of Michelob brands in a variety pack featuring MichelobPale Ale and the malty MichelobMarzen. Both of these brands won gold medals at the 2005 Great American Beer Festival.®

Additional seasonal brewswere introduced in 2005:Celebrate by Michelob and Brew Masters Private Reserve byBudweiser. These special-editionsipping beers, developed for theholiday season and packaged inlarge bottles for multiple servings,were carefully crafted to deliverfull-bodied tastes and aromas.Additional seasonal brands areplanned for 2006 to furtherAnheuser-Busch’s objectives of competing for high-end beer occasions and gaining retailersupport over other alcohol beverages during the holidays.

Anheuser-Busch has been theexclusive beer category advertiserduring the Super Bowl for the past18 years. In 2006, Bud Light’s“Secret Fridge” spot was votedNo. 1 in USA Today’s “Ad Meter”rankings, marking the eighth consec-utive year that Anheuser-Busch has won first place in what manyconsider the top consumer poll forSuper Bowl advertising. Bud Light,the world’s largest beer brand, alsolaunched new advertising in 2005with the theme “Always Worth It”that highlights its fun, contempo-rary and social positioning. Thebrand also continues its presence in sports through sponsorshipswith the National BasketballAssociation, the National HockeyLeague, the majority of NationalFootball League teams and manyother sports properties.

Budweiser Select, the newestaddition to the Budweiser family,was introduced nationally in 2005.This was one of the company’smost successful new product

launches, with more than 2 millionbarrels sold in its inaugural year.Budweiser Select’s national adver-tising campaign featured U.S. beercompany President August Busch IVand underscored the brand’s sophis-tication and its “Expect Everything”brand identity.

These actions together havecontributed to share growth for theBudweiser family of brands duringthe past four quarters, according toIRI supermarket data.

This is innovation…Innovation starts with a deep understanding of the consumer, and today’s contemporary adultconsumers 21 and over cravevariety more than ever before. To meet these changing tastes,Anheuser-Busch introduced morethan 30 new products and encour-aged consumers to experiment withnew flavors and different ways toenjoy beer. The company alsodeveloped drink innovations —

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BUDWEISER CLYDESDALES ACROSS AMERICA On July 3, 2005, St. Louis hosted the “Clydesdales Across America Here’s to the Heroes Tour”finale. Featuring the world-famous Budweiser Clydesdales, the tour visited 28 cities and was seen by millions across the United States last year.

Partnerships played an impor-tant role in providing expandedchoices for Anheuser-Busch custom-ers in the growing craft and importbeer segments. Anheuser-Buschformed a new group to developalliances, increase focus in thiscategory and leverage its long-standing relationships with qualitycraft brewers, such as Redhook andWidmer Brothers. In addition tothese craft brands, the currentAnheuser-Busch portfolio of alliancebrands includes Japan’s Kirinbrands, Kona beers from Hawaii,and Harbin, a new entry to theU.S. market from Anheuser-Busch’swholly owned China subsidiary.

This is enjoyment…Variety comes in many sizes fortoday’s adult consumers, and innovative new packaging stylesand shapes remain a cornerstone of Anheuser-Busch’s plans to elevate the image of beer. In 2005, Anheuser-Busch launched aluminum bottles nationally. The versatile new packaging is ideal for contemporary adults who want a stylish looking beveragewhen out at a club, bar or upscalerestaurant. Anheuser-Busch’saluminum bottles were so well-received that demand temporarilyexceeded supply.

In addition, the nationalrollout of the applied plastic labelwas completed in 2005. The clearlabel is found on Bud Light andBudweiser Select packaging andenhances the premium image andappeal of the brands.

Anheuser-Busch also is using“shrink-wrap” technology to createlimited-edition packages throughoutthe year. This technology applies a form-fitting vinyl plastic wrap to bottles that can be easilycustomized. Bud Light offeredfestive shrink-wrap package designsfor the winter holidays and willhighlight other special events

throughout the year, such asSt. Patrick’s Day, Cinco de Mayoand the World Series. Budweiserand Bud Light also offered team-specific packaging to highlight their“official beer sponsorship” of 28National Football League teams.

This is commitment…The Anheuser-Busch wholesalerpartnership provides the companywith a strong competitive advantage.Nearly 70 percent of the company’svolume is sold through exclusivewholesalers, increasing focus on thesales of Anheuser-Busch’s products.

Anheuser-Busch is committedto providing the right marketingand sales tools to wholesalers andretailers throughout the countryand demonstrated this in new and innovative ways in 2005. Inaddition to increasing its focus on

product and packaging innovation,Anheuser-Busch increased its salesforce and committed additionalresources to off- and on-premisemarketing. The company deployedbrewing and marketing “ambassa-dors” and contemporary marketingteams — dedicated sales teams whomeet with owners, wait staff andconsumers — to help sell Anheuser-Busch products in key marketsacross the country. This increasedfocus on “hand-to-hand selling”enables Anheuser-Busch whole-salers to work more closely withretailers at the local level and gainin-depth knowledge of consumerbehaviors and emerging trends.

On-premise activities alsoinclude high-image and high-impact draught beer presentation,new European-style draughttowers, upscale glassware and

Domestic Beer Operations

This is true.

Budweiser is the top-selling

premium beer inthe world.

Bud Light is the top-selling lightbeer worldwide.

Budweiser Select is one of the most

successful newbeer launches inthe history of thebrewing industry.

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In addition to marketing andmedia programs, Anheuser-Buschsupports nearly 400 community-based local and national Latinoorganizations and special events.During the past 20 years, the com-pany has contributed nearly $50million through programs such asBudweiser Homerunazo!, a programbenefiting the Hispanic ScholarshipFund (HSF). In cooperation with16 Major League Baseball teams,Anheuser-Busch and its distributorscontributed $100 to HSF and otherlocal charities each time home teamplayers hit a home run.

Commitment was not limitedto marketing and product innova-tion. During 2005, Anheuser-Buschcontinued to implement severalcost savings initiatives. Brewerymodernizations, such as improve-ments to packaging line flexibilityand increased bottle line speed,reductions in brewery materialcosts and transportation initiatives,including consolidation andimproved scheduling of shippingcarriers, contributed nearly$100 million in incrementalproductivity improvement savings.Through its “One Company”initiative, Anheuser-Busch stream-lined operations in informationtechnology, engineering, financeand supply chain functions, settingthe stage for long-term cost savingswhile forming an organizationalstructure poised for the future. Tooffset significant commodity costincreases incurred by most indus-tries, particularly high utility costs,the company initiated productivityprojects such as boiler controlimprovements and process heatrecovery to reduce fuel costs.

As adult consumer tastesevolve, the company will continueto invest in the right resources todeliver innovative products andmeaningful marketing messagesthat communicate the spirit andquality of Anheuser-Busch.

Domestic Beer Operations

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MULTICULTURALMARKETINGLatin pop starAngelina, nationalspokesperson for Education Is Freedom,performed her hit “Caliente” atthe Mets’ annualHispanic HeritageNight, sponsoredby Budweiser.

expanded point-of-sale materials,such as creative, eye-catching tapmarkers and illuminated menuboards. Our commitment wasextended through the “Ambassadorsof Quality” program, which allowsemployees to share their passionfor beer with friends and family.

The company also created a global industry development team that is spearheadingAnheuser-Busch’s efforts toenhance the image of beer andgenerate growth for the entire beer industry. The group has taken steps to develop an industry-wide coalition and campaign that highlights beer’s role inAmerican culture.

While Anheuser-Buschcontinues to devote resources totraditional marketing programs and sponsorships, the company has increased its focus on ethnicmarketing. To extend its long-standing support of adult urban and multicultural consumers,Anheuser-Busch created a new teamto lead marketing and communityoutreach for these key customergroups. Programs includeBudweiser’s sponsorship of theEssence Music Festival, the country’slargest African-American music

celebration, and Budweiser’s TruePioneers program, featuring postersof African-American musicians,poets and athletes commissioned forBlack History Month.

For more than 15 years,Anheuser-Busch has contributed toAsian Pacific American communitiesthrough a variety of programs. In2005, Michelob Light sponsored thefirst-ever Music Video competitionat the 28th annual Asian AmericanInternational Film Festival.

The Latino market represents11 percent of the U.S. beer industryvolume, and adult Latino drinkersaccount for 12 percent of Anheuser-Busch’s overall salesvolume. Anheuser-Busch has theNo. 1 and No. 2 brands in theLatino market, Bud Light andBudweiser, and currently holds48 percent of Latino market shareaccording to IRI data. To continueto reach this key demographic, thecompany sponsors national andlocal market promotions such asviewing parties for the MexicanNational Soccer Team and FIFAWorld Cup™ Qualifier Games.Budweiser and Bud Light are alsoproud sponsors of several Latinrecording artists and concerts.

Anheuser-Busch launched morethan 30 new products in 2005.

This is innovation.