The brewer has been accused of a “big lie” and burying the truth in the “fine print” despite “informally resolving” a complaint with the advertising regulator. But the company behind Budweiser insists it produces more renewable electricity than it uses in its breweries.
Following a complaint, Budweiser has had to clarify a claim on its website that its beer is brewed using “100% renewable” energy.
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 use of fossil fuels, and the matter was not made public.
The homepage of Budweiser’s UK website now includes an asterisk next to the statement “Budweiser is brewed with 100% renewable electricity”.
At the bottom of the page an explanation is given of the electricity it uses and the renewable electricity it produces.
“The actual electricity used to brew Budweiser is not 100% renewable sources,” the explanation at the bottom of the page has said since March.
It 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 the breweries need.
What did the complaint entail?
Earlier this year, before the complaint was reviewed by the ASA, the website simply stated the claim “100% renewables” and provided no breakdown of energy consumption and production.
The complainant, Irish Senator Lynn Boylan, argued that the text was misleading and could not be substantiated.
Everything connected to the National Grid will be powered by electricity from a range of sources that form part of the UK fuel mix, including wind and solar power, as well as nuclear, oil and gas generators.
The share of renewable energy sources and fossil fuels varies from day to day, depending on weather conditions.
It is not possible for electricity generated from fossil fuels to be filtered from the National Grid supply before it enters a particular home or business.
Companies that say they use “100% renewable electricity” often use a complex trading system that involves purchasing certificates for renewable energy produced somewhere in Europe.
This electricity does not end up in the British fuel mix and the National Grid.
What is a REGO?
Budweiser, owned by multinational beverage company AB InBev, was able to make good on its “100% renewable” claim by purchasing certificates known as Renewable Energy Guarantees of Origin (REGO).
The certificates pay for renewable energy produced elsewhere and are intended to encourage the production of renewable energy.
Budweiser purchases REGOs to offset the amount of non-renewable energy used by National Grid to power its breweries, according to its website.
Energy regulator Ofgem has been critical of REGOs.
A report for a parliamentary debate in 2018 states: “We also note that suppliers can buy REGOs cheaply, so it is easy and cheap for suppliers to ‘green’ some rates.
“As such, our position is that simply having renewable energy sources in the portfolio is not sufficient to demonstrate that a tariff supports renewable energy sources. We do not have sufficient evidence that existing renewable energy tariffs provide additional environmental benefits beyond existing renewable energy generation. “
In 2021, the government launched an investigation into how energy retailers market ‘green’ electricity rates to consumers, a process in which REGOs are involved.
‘Few people will read the fine print’
After Budweiser added the clarification to its UK website, the ASA told Sky News: “We believed these changes were sufficient to resolve the matter informally.”
But the complainant, Irish Senator Lynn Boylan, has appealed the ASA’s decision to accept a change to the Budweiser website and not issue a full ruling. She described the regulator’s response as ‘very disappointing’.
“While my complaint is justified in principle, in practice the consequences for Budweiser (UK) are far too weak,” she said.
“The reality – that fossil fuels are used to brew Budweiser – is buried, while the big lie – that 100% renewable energy sources are used – is allowed to persist. Few people will read the fine print to discover that the claim is incorrect.”
Ms Boylan’s complaint was lodged with the UK watchdog after a similar complaint was accepted by the Advertising Standards Authority for Ireland.
A statement from Budweiser Brewing Group UK and Ireland said: “AB InBev UK purchases and produces more renewable electricity than it uses in its breweries. This is documented through a European system of REGOs or GoOs (Renewable Energy Guarantees of Origin), which is a regulated system, managed in Great Britain by Ofgem.”
“Our sources of renewable electricity for the UK breweries include: An on-site wind turbine connected directly to our brewery in Magor, Wales. A 20-year Virtual Power Purchase Agreement (the VPPA) which provides for the operation of solar panel farms (Grange in Nottinghamshire and South Lowfield in West Yorkshire) which generates more electricity than our breweries need,” the statement continued.
“The UK&I team has taken this complaint seriously and has worked with the ASA to amend the website to reflect all requested changes.”
“The ASA has said that they believe the changes we have made will resolve the complaint without the need for a formal ruling from the ASA council.”