Budweiser, a popular beer brand, recently faced a complaint regarding a claim on its website that its beer is brewed using “100% renewable” energy. The complaint, which has been informally resolved by the Advertising Standards Authority (ASA), raised concerns about the substantiation of this statement and the brewer’s use of fossil fuels.
In response to the complaint, Budweiser has added an asterisk next to its “Budweiser is brewed with 100% renewable electricity” statement on the homepage of its UK website. The company has also provided a breakdown of its energy use and production at the bottom of the page. According to the clarification, while the electricity used to brew Budweiser is not from 100% renewable sources, the company offsets the non-renewable energy used from the National Grid through the purchase of green energy agreements.
Budweiser’s renewable energy sources include an on-site wind turbine connected to its brewery in Magor, Wales, and a 20-year agreement for the operation of two solar panel farms in Nottinghamshire and West Yorkshire. These sources reportedly generate more electricity than the company’s breweries require.
The complaint, which was submitted by Irish senator Lynn Boylan, argued that the previous version of the website, which only featured the “100% renewable sources” claim without a breakdown of energy use, was misleading and could not be substantiated. It was also noted that electricity from the National Grid is sourced from a variety of sources, including renewables, nuclear, oil, and gas generators.
To support its claim, Budweiser uses renewable energy guarantees of origin (REGOs), which are certificates that pay for renewable energy produced elsewhere and are designed to encourage renewable energy production. However, energy regulator Ofgem has been critical of REGOs, stating that simply having renewables in a company’s portfolio does not necessarily provide additional environmental benefits.
In response to the complaint, Budweiser Brewing Group UK and Ireland stated that the company buys and produces more renewable electricity than it uses in its breweries. The company also clarified that it uses a regulated scheme, administered by Ofgem, to document its use of REGOs. Budweiser also highlighted its renewable energy sources, including an on-site wind turbine and a 20-year virtual power purchase agreement for the operation of solar panel farms.
While the ASA has deemed the changes made by Budweiser to be sufficient to resolve the complaint, the complainant, Lynn Boylan, has appealed against the decision, arguing that the consequences for Budweiser are too weak and that the claim of using 100% renewable energy is still misleading. She stated that few people will read the fine print to learn the truth behind the claim.
This is not the first time that a similar complaint has been raised against Budweiser. In Ireland, the Advertising Standards Authority upheld a similar grievance. The UK watchdog has launched a government review into how energy retailers market ‘green’ electricity tariffs, a process that involves the use of REGOs.
In response to the complaint, Budweiser has stated that it takes the matter seriously and has worked with the ASA to make the necessary changes to its website. The company also stated that the ASA believes these changes will resolve the complaint without the need for a formal ruling by the ASA council.
