Financial News

May 30, 2009

A-B closes cash tap for Legion Post 299

Filed under: marketing — Tags: , , — Insurancent @ 10:51 pm

It’s been a tradition for years. On certain nights, if you swing by Anheuser-Busch’s St. Louis brewery, hang a left in the lobby at the big eagle statue and head up the stairs to the cafeteria, you will enter a gathering of American Legion Post 299.

Since World War II, the brewer has been the chief patron for the group of local veterans, supplying beer and space for meetings. It also has supplied thousands of dollars in donations every year to the post, whose membership is open to those who both served in the U.S. military and worked for A-B.

But Anheuser-Busch’s cash donations to Post 299 dried up this year. And now, leaders of Post 299 accuse Anheuser-Busch InBev of reneging on its promise to continue supporting it.

"We’d like to have (the funding) restored like it was," said Joseph Holaus, 82, who serves as the post’s adjutant or secretary. "They agreed to do this for us."

A-B’s contributions have helped Post 299 donate to needy children and to veterans over the years, and officers of the Legion post expected the tradition to continue. They say Anheuser-Busch managers told them in a meeting last November — just before InBev bought America’s biggest brewer — that the company would donate $20,000 to the post in 2009.

But in February, the company informed Post 299 it would not make its customary cash donation. Contacted this week, A-B said it is unaware of any discussions of 2009 funding before February. The company indicated it had no record of committing itself to making more cash donations to Post 299.

Anheuser-Busch has been a stalwart sponsor of Post 299 since 1940. Vernon Rothermel, a Korean War medic, has been the post’s finance officer since the earlier 1990s. He remembers annual donations of $8,000 from the brewer — donations that eventually were bumped up to $11,000. And for the last four or five years, Anheuser-Busch has given as much as $22,000 per year to the veterans’ group, said Rothermel, 80. That number included $15,000 in straight donations and $7,000 in an account to cover "free" beer for picnics, conventions and meetings.

A-B declined to discuss its amount of cash-giving to Post 299. Nor did the company explain why it halted its customary cash donations to Post 299 this year.

"We admire the good work of Post 299," David A paperless payday loans. Peacock, the company’s president, said in a statement. "There are many worthy organizations that request our support each year. We remain committed to supporting groups in ways big and small that are working to serve our community."

Anheuser-Busch has a long history of supporting veterans and current armed forces. It provides funds for veterans and families of fallen soldiers, as well as free admission to military families at its theme parks. Earlier this month, the company was honored with the Secretary of Defense Outstanding Public Service Award, the second-highest citation the Department of Defense can award to private citizens for contributions, assistance or support.

A-B officials said they try to support as many groups as feasible. The targeted areas for A-B’s charitable giving include education, the environment, economic development, disaster preparedness and the military. "We evaluate each request and put the money where we feel it will be put to the best use in any given year," Peacock said.

Post 299 veterans say their connection to Anheuser-Busch went beyond money. Beer magnate August A. "Gussie" Busch Jr. was once a member. The post manned a rifle guard at his funeral and lays a wreath on his grave every Sept. 29 — the day of his death.

Holaus has photo albums stuffed with pictures of Busch at Legion events. He pulled them out of a closet in his Sunset Hills home to show a visitor last week.

Anheuser-Busch said it continues to provide a meeting space for Post 299’s monthly meetings and free beer for special events, such as an upcoming picnic.

Still, Post 299 finds its long-term financial future in doubt. Without support from its major corporate donor, the group’s treasury could shrivel. Rothermel figures that the group’s finances would last perhaps three or fours years if the group spent money like it once did. The veterans say they are frustrated and disappointed.

"Let’s face it — we’re talking about a few bucks," said Carl Adam Sr., retired director of brewing operations at Anheuser-Busch, who met some of the Legion guys 30 years ago in St. Louis. "It’s ridiculous."

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