ST. LOUIS--(BUSINESS WIRE)--Oct. 25, 1995--In a series of moves to enhance shareholder value, Anheuser-Busch Companies, Inc., announced today that it will sell its snack food and baseball subsidiaries, close its high cost Tampa, Fla., brewery, and enhance system profitability by reducing wholesaler inventory levels throughout the United States.

"We are focusing on what we know best -- providing consumers with the highest quality beer and entertainment at affordable prices," August A. Busch III, chairman and president, said.

He added that the actions announced today complete a package of moves undertaken in 1995 to enhance shareholder value, complementing the decision earlier this year to spinoff Campbell Taggart, the company's baking subsidiary.

"At the end of this process, our company will consist of very profitable, mutually supportive and growth-oriented operations in domestic and international brewing, family entertainment and beverage container manufacturing," Busch said.

"This is the best way to provide value for our shareholders," he added.

Closing the Tampa brewery, the highest-cost plant in the Anheuser-Busch system, will result in a $150 million one-time book write-off in the fourth quarter of 1995, but will result in $33 million a year in operational cost savings.

"We have received serious expressions of interest from qualified parties in the purchase of Eagle Snacks," Busch said. This transaction will result in a substantial write-off in the fourth quarter. The book value of Eagle Snacks is $240 million.

By adjusting wholesaler inventories, Anheuser-Busch will reduce its costs, and those of its independent wholesalers, by a total of $12 million a year. This step will require a one-time, 1.1 million barrel reduction in shipments from the company's breweries during the last quarter of the current year. Therefore, it is expected to reduce operating profits by approximately $71 million in 1995. The inventory adjustment will not affect market share or sales to retailers.

The company will realize a gain on the sale of the St. Louis Cardinals upon completion of that transaction.

When coupled with the spinoff of Campbell Taggart, these moves will improve the company's cash position by more than $200 million.

"Based on the success of our core businesses, we are able to undertake these important moves from a position of strength," Mr. Busch said.

"Anheuser-Busch, Inc., our domestic brewing operation, has set industry sales volume records for the first nine months of 1995, led by our high-value/higher-margin Budweiser and Michelob families," he added. "We are continuing to expand our global operations, and profits for Anheuser-Busch International are up double digits for the year. Busch Gardens and Sea World are in the midst of another record year, both in terms of the number of guests visiting our theme parks and profitability. Finally, our beverage container operation continues to be profitable, and is the lowest cost producer in the industry."

Eagle Snacks

Anheuser-Busch established Eagles Snacks, Inc., in 1979....