Suits: More water, less buzz in Budweiser, Michelob, others

PHILADELPHIA -- Beer lovers have accused Anheuser-Busch of watering down its Budweiser, Michelob and other brands, in class-action suits seeking millions of dollars in damages.

The suits, filed in Pennsylvania, California and other states, claim consumers have been cheated out of the alcohol content stated on labels. Budweiser and Michelob boast of being 5 percent alcohol, while some "light" versions are said to be just above 4 percent.

The lawsuits are based on information from former employees -- some in high-level plant positions -- at the company's 13 U.S. breweries, according to lead lawyer Josh Boxer of San Rafael, Calif. Mentioned are Budweiser, Bud Ice, Bud Light Platinum, Michelob, Michelob Ultra, Hurricane High Gravity Lager, King Cobra, Busch Ice, Natural Ice and Bud Light Lime.

"Our information comes from former employees at Anheuser-Busch, who have informed us that as a matter of corporate practice, all of their products mentioned [in the lawsuit] are watered down," Boxer said. "It's a simple cost-saving measure, and it's very significant."

Water is added just before bottling and cuts the stated alcohol content anywhere from 3 percent to 8 percent, he said.

Anheuser-Busch InBev called the claims "groundless" and said its beers comply fully with labeling laws.

"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," said Peter Kraemer, vice president of brewing and supply.

Anheuser-Busch, based in St. Louis, merged with InBev in 2008 to form the world's largest alcohol producer, headquartered in Belgium. In 2011, the company produced 10 billion gallons of malt beverages; 3 billion in the U.S.

According to the lawsuit, the company reported $22 billion in profits from that category. Also mentioned is that it has sophisticated equipment that measures alcohol content -- accurate to within one-hundredth of a percent -- throughout the brewing process. After the merger, the company increasingly chose to dilute its popular brands of beer, the lawsuit alleged.

"Following the merger, AB vigorously accelerated the deceptive practices described below, sacrificing the quality products once produced by Anheuser-Busch in order to reduce costs," said the lead lawsuit, filed Friday in federal court in San Francisco on behalf of consumers in the lower 48 states.

Companion suits are being filed this week in Pennsylvania, New Jersey and elsewhere, each seeking at least $5 million in damages.

The named Pennsylvania plaintiffs, Thomas and Gerald Greenberg of Ambler, said they buy six cases of the affected Anheuser-Busch products a month. They did not immediately return a message Tuesday, and Boxer would not elaborate on the purchases except to say the consumer-protection suit does not involve retailers or bar owners.

One California plaintiff, Nina Giampaoli of Sonoma County, said she bought a six-pack of Budweiser every week for the past four years.

"I think it's wrong for huge corporations to lie to their loyal customers -- I really feel cheated. No matter what the product is, people should be able to rely on the information companies put on their labels," Giampaoli said in a news release issued by Boxer's law firm.

Boxer said he has evidence to corroborate the former employees' allegations.

"AB never intends for the malt beverage to possess the amount of alcohol that is stated on the label. As a result, AB's customers are overcharged for watered-down beer and AB is unjustly enriched by the additional volume it can sell," the lawsuit stated.