ST. LOUIS (AP) —Budweiser brewer Anheuser-Busch has reached a contract agreement with the Teamsters union that avoids a strike at its U.S. plants.<div><blockquote class="twitter-tweet">TEAMSTERS REACH MAJOR NEW AGREEMENT WITH ANHEUSER-BUSCH, BOOSTING WAGES, PROTECTING JOBS Today, the International Brotherhood of Teamsters reached a five-year tentative agreement significantly raising pay, improving health care and retirement benefits, and providing critical job… <a href="https://t.co/9jlVAdxxfU">pic.twitter.com/9jlVAdxxfU</a>&mdash; Teamsters (@Teamsters) <a href="https://twitter.com/Teamsters/status/1762980659478352118?ref_src=twsrc%5Etfw">February 28, 2024</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>The union had threatened a strike at the brewer’s 12 U.S. plants if an agreement on a new five-year contract wasn’t reached by 11:59 p.m. EST Thursday. The Teamsters union represents 5,000 Anheuser-Busch workers who brew and package beer and even take care of the company’s legendary Clydesdale horses.But the two sides said late Wednesday they had reached a tentative agreement that boosts wages and increases vacation days and pension contributions.“Teamsters make the beer, Teamsters make Anheuser-Busch successful and our members deserve the best contract. That is what we fought for and won today,” Teamsters General President Sean M. O’Brien said in a statement.Anheuser-Busch CEO Brendan Whitworth said the contract also makes significant job security commitments."Our people are our greatest strength, and we are incredibly pleased to have reached a tentative agreement that continues to recognize the talent, dedication, and hard work of our teams, while also positioning the company for long-term success,” Whitworth said in a statement.The union said the full tentative agreement will be shared with workers prior to a ratification vote, which is expected to happen next week.The strike would have been the first in the U.S. against Anheuser-Busch since 1976.The union said earlier this month it was angered by a company proposal that would close breweries and lay off workers.But Anheuser-Busch is facing declining beer sales in the U.S., where drinkers are increasingly opting for spirits, hard seltzers and alcohol-free beverages.It’s also trying to win back consumers. Bud Light, its best-selling brand, faced a&nbsp;<a href="https://apnews.com/article/bud-light-anheuser-busch-inbev-earnings-46b6412f84b5e8884caea941fc069d2f">conservative backlash</a>&nbsp;last year after it sent a commemorative can to transgender activist Dylan Mulvaney. Transgender rights supporters also deserted the brand, saying it&nbsp;<a href="https://apnews.com/article/bud-light-transgender-dylan-mulvaney-442d6d4c3f41d706586de8edd01ac13d">didn't do enough</a>&nbsp;to support Mulvaney.Anheuser-Busch shipments to U.S. wholesalers dropped 13.8% last year, according to Beer Marketer’s Insights. Overall, U.S. beer shipments were down 5%.The company, part of Belgium-based Anheuser-Busch InBev, brews more than a dozen brands at its U.S. plants, including Budweiser, Bud Light, Michelob Ultra and Stella Artois.

Anheuser-Busch, Teamsters reach agreement that avoids US strike