The California Transparency in Supply Chains Act of 2010

The State of California enacted legislation, the California Transparency in Supply Chains Act of 2010 (the “Act”), that requires retailers and manufacturers doing business in California with over $100 million in worldwide gross receipts to disclose what efforts  they have taken to eliminate slavery and human trafficking from their supply chains.  Anheuser-Busch will not tolerate forced labor in its supply chain.  The Act requires Anheuser-Busch to disclose, at a minimum, the following:

• Anheuser-Busch routinely assesses risk related to its supply chain.  This assessment is based upon supplier quality performance, the type of transaction, the specific commodity purchased, the geographic location of the source and other relevant criteria.  The assessment is performed internally from time to time, and A-B may use external resources in connection with its risk assessment.
• Anheuser-Busch conducts audits of its suppliers to monitor compliance with its expectations and contractual requirements.  These audits are conducted both by us and external resources and may at times be without notice.   Following any unsatisfactory audits, suppliers are required to submit and satisfactorily complete corrective action plans within a specified timeline.   Anheuser-Busch follows-up with suppliers to confirm satisfactory completion.   Anheuser-Busch specifically includes the right to audit a supplier’s compliance with company standards for human trafficking and slavery.
• Anheuser-Busch requires all of its suppliers to comply with all applicable laws, rules and regulations in the countries or countries in which they are doing business.  We specifically include in our contracts and purchase orders with direct suppliers of materials incorporated into our products a provision requiring our suppliers to certify to us compliance with laws regarding slavery and human trafficking of the country or countries in which they are doing business.
• Anheuser-Busch reserves the right to terminate relationships with suppliers if suppliers fail to comply with legal requirements and/or noncompliance is not addressed in a timely manner.  Employees who fail to comply with company policies may be disciplined including termination of employment.
• Anheuser-Busch employee talent attraction and retention is managed via a comprehensive set of programs and processes governing hiring and termination practices, diversity, workplace environment and working conditions, employee safety, and employee dispute resolution. These programs comply with applicable federal and state regulations/guidelines and are accessible to employees via company websites and/or inquiry with the local Human Resources representative.