The brewery has been accused of a “big lie” and burying the truth in the “fine print”, despite an “informal resolution” of 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 the complaint.
The complaint was “informally resolved” by the advertising regulator, the Advertising Standards Authority (ASA), meaning the brewery agreed to back up 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”.
At the bottom of the page, the clarification breaks down the electricity it uses and the renewable electricity it produces.
“The actual electricity used to make Budweiser is not from 100% renewable sources,” reads an explanation at the bottom of the page from March.
It continues: “But Budweiser ensures that an equal amount of energy is produced under green energy agreements to offset the amount of non-renewable energy used from the national grid to power our brewing processes.”
The asterisk note adds that Budweiser’s two on-site renewable energy sources are wind turbines directly connected to its brewery in Magor, Wales; and a 20-year contract to operate two solar panel farms, located in Nottinghamshire and West Yorkshire, which the company says are producing more electricity than their breweries need.
What is argued in the complaint?
Earlier this year, before the ASA assessed the complaint, the website only contained the “100% renewables” claim and did not provide a breakdown of energy use 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 make up the UK’s 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 before entering a particular home or business.
Companies that say they use “100% renewable electricity” often use a complex trading system where certificates are bought for renewable energy produced somewhere in Europe.
This electricity does not feed into the UK’s fuel mix and the national grid.
What is REGO?
Budweiser, owned by multinational drinks company AB InBev, could claim to be “100% renewable” 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 from the national grid to power its brewery, according to its website.
Energy regulator Ofgem has been critical of REGOs.
A report to the 2018 parliamentary debate 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 the mere presence of renewables in a portfolio is not sufficient to demonstrate that a tariff supports renewables. We do not have sufficient evidence that existing renewables tariffs provide additional environmental benefits beyond existing renewable generation. “
A government review was launched in 2021 into how energy retailers market ‘green’ electricity tariffs to consumers, a process that includes REGOs.
‘Few people will read fine print’
After Budweiser added a 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 Lynn Boylan, appealed the ASA’s decision to accept the change to Budweiser’s website and not make a full judgment. She described the regulator’s response as “very disappointing”.
“While my complaint is justified in principle, in practice the consequences for Budweiser (UK) are too weak,” she said.
“The reality – that fossil fuels are used in the production of Budweiser – is buried, while the big lie – that 100% renewable energy sources are used – is allowed to continue. Few people will read the fine print to find out that the claim is false.”
Ms Boylan’s complaint was referred to the UK watchdog after a similar complaint was upheld by the Advertising Standards Authority for Ireland.
AB InBev has been contacted for comment.