Federal Reserve Chairman Ben Bernanke is back on Capitol Hill today to field another round of questions from lawmakers. Yesterday, he warned members of the Senate Banking Committee that the sequester's spending cuts, which kick in on Friday, will harm the already fragile economic recovery.
Juli Niemann, analyst with Smith Moore and Company, joins Marketplace Morning Report host Jeremy Hobson to break down how the cuts could trickle out into the consumer economy.
Also: Flooding follows snow in the Midwest; Iran will continue international nuclear talks; Taliban uses poison to kill Afghan police and civilians; and Ill. candidate field narrowed for elections to fill Rep. Jesse Jackson Jr.'s seat.
Yesterday wasn’t a good day for Anheuser-Busch InBev. The company announced its profits fell last quarter, by almost five percent, and it got saddled with three lawsuits alleging the company has misrepresented how much alcohol is in its beer.
Budweiser is what’s called an American lager. For many years, Anheuser-Busch was run by a family with exacting standards.
“They specified the barley, the hops,” says Peter Reid, the publisher of Modern Brewery Age, a magazine about the beer industry. “All the ingredients were top notch.”
He says that InBev, the company that bought Anheuser-Busch in 2008, has a reputation for cost-cutting, but still, he says he is skeptical of what the plaintiffs claim.
“I was surprised in the suit that they hadn’t done independent testing of the alcohol content.”
In a statement, Anheuser-Busch says the claims are “completely false,” and these lawsuits are “groundless.”
Many large-scale beer makers do brew high-alcohol beer, then water it down to a normal level, to sell to consumers.
“It’s much quicker, easier, and cheaper to water down a product later on,” says Matt Simpson, owner of “The Beer Sommelier.” He says that’s one thing, but if the company mislabeled what it was selling, that’s another.