This Bud may lack some kick, lawsuit alleges

Lagering tanks at the Anheuser-Busch brewery in east Houston, taken December 2011. Photo appeared in book, "Houston Beer: A Heady History of Brewing in the Bayou City" by Ronnie Crocker. Lagering tanks at the Anheuser-Busch brewery in east Houston, taken December 2011. Photo appeared in book, "Houston Beer: A Heady History of Brewing in the Bayou City" by Ronnie Crocker. Photo: Ronnie Crocker Photo: Ronnie Crocker Image 1 of / 5 Caption Close This Bud may lack some kick, lawsuit alleges 1 / 5 Back to Gallery

Anheuser-Busch systematically has cheated consumers and violated Texas law by watering down Budweiser and its other beers to reduce alcohol content below advertised levels, a federal lawsuit filed Thursday in Dallas alleges.

The lawsuit, on behalf of a Collin County man who claims he was deceived when making monthly purchases of Bud Light Platinum, Michelob Ultra or Bud Light Lime, is the latest to allege that Anheuser-Busch deliberately has misled consumers regarding alcohol content in an effort to boost production and trim costs on raw materials.

"Because water is cheaper than alcohol, AB adds extra water to its finished products to produce malt beverages that consistently have significantly lower alcohol content than the percentage displayed on its labels," the lawsuit claims.

"By doing so, AB is able to produce a significantly higher number of units of beer from the same starting batch of ingredients. However, consumers receive watered down beer containing less alcohol than is stated on the labels of AB's products."

'In full compliance'

The company, which produces more than 3 billion gallons of malt beverages annually at its 13 U.S. breweries, including one in east Houston that employs some 500 full-time workers, denied the charges.

"The claims against Anheuser-Busch are completely false, and these lawsuits are groundless," Peter Kraemer, vice president of Brewing and Supply, said in a prepared statement. "Our beers are in full compliance with all alcohol labeling laws. We proudly adhere to the highest standards in brewing our beers, which have made them the best-selling in the U.S. and the world."

But attorney Josh Boxer, who filed related class-action lawsuits in California, New Jersey, Pennsylvania, Colorado and Ohio earlier in the week before filing Thursday in Texas and Missouri, said his law firm was approached by "a number" of former employees with "decades of experience" who detailed a methodical, ongoing effort to cut costs on raw materials by watering down beer.

'Deceptive practices'

The lawsuit contends that the activity increased after Belgium-based InBev took over the company in November 2008.

"Following the merger, AB vigorously accelerated the deceptive practices described below," the suit alleges, "sacrificing the quality products once produced by Anheuser-Busch in order to reduce costs."

Boxer, of the Mills Law Firm near San Francisco, said he plans to file suit in a couple of other states as well. The lawsuit estimates millions of potential plaintiffs and expects damages to top $5 million.

The Dallas suit accuses Anheuser-Busch of violating the Texas Deceptive Trade Practices-Consumer Protection Act and the federal Magnuson-Moss Warranty Act and breaching "the implied warranty of merchantability" under Texas law.

The class action says it covers all Texas residents who purchased any of the following beers within four years of its filing: Budweiser, Bud Ice, Bud Light Platinum, Michelob, Michelob Ultra, Hurricane High Gravity Lager, King Cobra, Busch Ice, Natural Ice, Black Crown and Bud Light Lime.

Bud Light is not listed among the affected beers because Anheuser-Busch does not list the alcohol percentage on that label, Boxer said.

Separately, the public news outlet NPR on Thursday reported it had cans of Anheuser-Busch products tested by a San Diego lab and found the beer met the advertised specifications.

Boxer said the former employees who came forward said Anheuser-Busch's sophisticated in-line measuring instruments are more accurate than any outside lab, and he expects documents and testimony uncovered as the lawsuit proceeds will show the beer was deliberately kept below stated alcohol levels.

How about drinkers?

The lawsuit says those instruments, Anton Paar meters, let Anheuser-Busch measure the alcohol content of its products to within 0.01 percent. It alleges the company uses that "precision technology" to keep the alcohol levels down.

How much these lawsuits will mean to consumers is another matter.

Brock Wagner, owner of Houston-based Saint Arnold Brewing Co., said that when he talks to people about his beers the subject of alcohol levels does not come up except in the specific cases of high-alcohol beers. He doesn't think people compare levels when deciding between brands to purchase.

But, he said, people develop a relationship akin to friendship with their beer brands and the perception that a company is not delivering what it says could have an impact.

"Consumers never like the feeling they're being deceived," Wagner said.