The brewer has been accused of a “big lie” and burying the truth in the “fine print”, despite having “informally resolved” a complaint to the advertising regulator.
Budweiser had to clarify the claim on its website that its beer is produced using “100% renewable” energy after a complaint.
The complaint was “informally resolved” by the advertising regulator, the Advertising Standards Authority (ASA), meaning the brewer agreed to substantiate the statement and detail its fossil fuel use and the issue was not made public.
Budweiser’s UK website home page now features an asterisk next to the statement “Budweiser is made with 100% renewable electricity”.
There’s a note at the bottom of the page that breaks down the electricity it uses and the renewable electricity it produces.
“The actual electricity used to brew Budweiser is not from 100% renewable sources,” reads the explanation at the bottom of the March page.
He continues: “But Budweiser ensures that an equivalent amount of energy is generated under green energy agreements to offset the amount of non-renewable energy used by the National Grid to power our brewing processes.”
The asterisk note adds that Budweiser’s two sources of renewable energy are an on-site wind turbine directly connected to the brewery in Magor, Wales; and a 20-year agreement to operate two solar panel farms located in Nottinghamshire and West Yorkshire, which the company says generate more electricity than its breweries require.
What does the appeal argue?
Earlier this year, before the complaint was assessed by the ASA, the website simply included the “100% renewables” claim and did not give a breakdown of energy consumption and production.
The complainant, Irish Senator Lynne Boylan, claimed the text was misleading and could not be proven.
Everything connected to the National Grid will be powered by electricity from a range of sources that make up Britain’s fuel mix, including wind and solar, as well as nuclear, oil and gas generators.
The ratio of renewables to fossil fuels varies from day to day depending on weather conditions.
It is not possible for fossil fuel generated electricity to be filtered from the national grid supply before it enters a particular home or business.
Businesses that say they use “100% renewable electricity” often use a complex trading system where they buy certificates for renewable energy produced somewhere in Europe.
This electricity does not feed into the UK’s fuel mix and national grid.
What is REGO?
Budweiser, owned by multinational drinks company AB InBev, has been able to make the “100% renewable energy” claim because it buys certificates known as Renewable Energy Guarantees of Origin (REGO).
Certificates pay for renewable energy produced elsewhere and are designed to encourage renewable energy production.
Budweiser is buying REGO to offset the amount of non-renewable energy used by the national grid to power its brewery, the website said.
Energy regulator Ofgem has been critical of REGO.
A 2018 parliamentary debate report said: “We also note that suppliers can buy REGO cheaply, so it is easy and cheap for suppliers to ‘green’ some tariffs.
“As such, our starting point is that simply having renewables in the portfolio is not sufficient to demonstrate that a tariff provides support for renewables. We do not have sufficient evidence that existing renewable energy tariffs provide additional environmental benefit beyond existing renewable generation.”
In 2021, a government review of how energy retailers offer ‘green’ electricity tariffs to consumers starts, a process which includes REGO.
“Few people will read the fine print”
After Budweiser added the clarification to its UK website, the ASA told Sky News: “We felt these changes were sufficient to resolve the matter informally.”
But the complainant, Irish senator Lynne Boylan, is appealing the ASA’s decision to accept a change to Budweiser’s website and not issue a full ruling. She described the regulator’s response as “very disappointing”.
“While my complaint was upheld in principle, in practice the consequences for Budweiser (UK) are too weak,” she said.
“The reality – that fossil fuels are used in the brewing of Budweiser – is buried, while the big lie – that 100% renewable energy sources are used – can live on. Few people will read the fine print to know that the statement is false.”
Ms Boylan’s complaint was lodged with the UK watchdog after a similar complaint was upheld by the Advertising Standards Authority for Ireland.
AB InBev has been approached for comment.