Anheuser-Busch Converts Houston Trucking Fleet to Compressed Natural Gas Engines

New 66-tractor, heavy-haul fleet will deliver environmental benefits and company savings

HOUSTON (September 4, 2014) – Anheuser-Busch today announced it is replacing its 66 diesel tractor fleet in Houston with Compressed Natural Gas (CNG) powered tractors. This marks the beer company's first conversion of an entire brewery fleet and represents a significant milestone in achieving its goal to reduce carbon emissions.

“The next generation CNG engine technology paired with support from state incentive programs contributed to our ability to take such a significant step in fully converting our Houston fleet,” said James Sembrot, Senior Director, Transportation, Anheuser-Busch. “Houston is a strategic choice due to the central location to our facilities and distribution radius, as well as its proximity to fueling stations.”

The CNG conversion comes as the 2014 football season kicks off one of the company's busiest shipping periods of the year – with an estimated 17 million cases of beer shipped by the Houston fleet during third quarter. Through the advanced engine technology, the fleet is expected to reduce 2,000-tons of carbon dioxide (CO2) emissions per year when adjusting emissions reduction for consumption rates.

"The city of Houston was an early leader in the pursuit of cleaner, greener energy options,” said Mayor Parker. “It is encouraging to see one of our major companies taking a major step forward in this area. Cleaner technologies benefit all Houstonians because they help improve the air we breathe.

As part of its ‘seed to sip' environmental platform, Anheuser-Busch becomes one of only a few large, heavy-haul shippers to convert a fleet to alternative fuel power vehicles. In June, the company added a global environmental goal to reduce carbon emissions in its logistics operations from network planning, transportation, and warehousing by 15 percent by the end of 2017.

The CNG conversion represents significant business and environmental benefits for Anheuser-Busch. Working with transportation partner Ryder, the 12-liter lighter-weight engines are expected to emit 23 percent less greenhouse gases (compared to diesel), which is the equivalent of taking approximately 420 passenger vehicles off the road.

“We commend the Anheuser-Busch team for their leadership and decision to convert their entire Houston brewery fleet to cleaner, more efficient natural gas,” said Dennis Cooke, President, Global Fleet Management Solutions for Ryder. “We are honored that Anheuser-Busch has trusted Ryder as its leasing and maintenance partner to help take this important step toward reducing the environmental impact of their fleet.”

J.B. Hunt, a leading transportation provider, will continue to manage Anheuser-Busch's Houston fleet. Once fully installed, the company estimates it will secure significant savings.

The natural gas vehicles are being made available through Ryder's participation in the Texas Natural Gas Vehicle Grant Program (TNGVGP), funded by the Texas Emissions Reduction Plan (TERP) initiatives and administered by the Texas Commission on Environmental Quality (TCEQ). 

ABOUT ANHEUSER-BUSCH

For more than 160 years, Anheuser-Busch and its world-class brewmasters have carried on a legacy of brewing America's most-popular beers. Starting with the finest, all-natural ingredients sourced from Anheuser-Busch's family of growers, every batch is crafted using the same exacting standards and time-honored traditions passed down through generations of proud Anheuser-Busch brewmasters and employees. Best known for its fine American-style lagers, Budweiser and Bud Light, the company's beers lead numerous beer segments and combined hold 47.2 percent share of the U.S. beer market. Anheuser-Busch is the U.S. arm of Anheuser-Busch InBev and operates 14 local breweries, 17 distributorships and 23 agricultural and packaging facilities across the United States, representing a capital investment of more than $15.5 billion. Its flagship brewery remains in St. Louis, Mo., and is among the global company's largest and most technologically capable breweries. Visitor and special beermaster tours are available at its St. Louis and four other Anheuser-Busch breweries. For more information, visit www.anheuser-busch.com.