well-known chronicler of the beer industry who failed to snag a single interview with The Third despite years of trying. The first time Schuhmacher met The Third was at the dedication of a distributorship in San Antonio, where he walked up to introduce himself.
âYeah, Iâve seen your paper,â The Third said, and stalked off without another word, leaving Schuhmacher to wonder what The Third actually thought of his work. âWell, at least heâs seen it!â joked the man standing next to him.
The Thirdâs fear of having his trust violated grew particularly pronounced after a 1987 incident that rocked the company and led to the forced resignations of several top executives. During the bankruptcy proceedings of an advertising agency called Hanley Worldwide, allegations arose that three Anheuser-Busch officersâpromotions manager John Lodge, wholesale operations vice president Michael Orloff, and sales head Joseph Martinoâhad accepted kickbacks and payoffs. The bankruptcy proceedings charged that Lodge had accepted $13,500 toward the purchase of a Porsche and included allegations that Orloff and Martino may have taken questionable payments.
Orloff and Martino maintained their innocence, and Lodgeâs lawyer said Lodge wasnât knowingly involved in wrongdoing. Although the company had a strict policy against employees accepting gifts from business associates, Martino, who eventually resigned, said such behavior was âpart of the corporate cultureâ at Anheuser-Busch, and reports of other managers accepting gifts began to leak out. The firings of those allegedly involved didnât suffice for the image-conscious August III, who turned to Dennis Long, the companyâs second-ranking executive and one of his closest friends, for answers. As head of the brewery, all three men had reported to him. Long wasnât able to quell the pressure from August III, and he resigned, assuming responsibility for the executivesâ alleged infractions.
It was a painful pill for The Third to swallow. Long was his protégé, frequent traveling partner, and closest business confidante, and he had been one of the architects of the companyâs golden era versus Miller in the 1980s. He had been Anheuser-Buschâs âinspirational leader,â said one former executive, the perfect complement to detail-obsessed August. The Thirdâs determination to cut away Anheuserâs cancer superseded his ties to his friend. âAugie does not forgive,â said one former executive.
Life at Anheuser-Busch changed noticeably after that, and largely for the worse. The Third had seized control of 38 percent of the U.S. beer market, but he suddenly found himself lacking a CEO for his all-important brewery division and sporting a headless sales staff. To fill the gap, he announced that he would assume Longâs former duties and act as president of the beer subsidiary.
Wall Street analysts expected him to quickly identify a new brewing head, and several names were circulated. Instead, August III told investors that he would hold both jobs for at least two years. He proceeded to do that and more. Nearly three years later, with The Third still pulling double duty, the St. Louis Post-Dispatch ran a column that read like a âHelp Wantedâ advertisement for Longâs former position.
âHe wasnât going to promote anyone into any position of importance within the company because he really, frankly, didnât trust anyone,â said one strategy committee member. âThat was a turning point. The minute he lost confidence in the people around him, it became a very difficult place to work. I could tell how much distrust there was of people in general because of the sting the company had endured, and Mr. Busch in particular.â
That distrust only fueled The Thirdâs unwillingness to delegate authority or to allow his views to be challenged. He was looking to
âYeah, Iâve seen your paper,â The Third said, and stalked off without another word, leaving Schuhmacher to wonder what The Third actually thought of his work. âWell, at least heâs seen it!â joked the man standing next to him.
The Thirdâs fear of having his trust violated grew particularly pronounced after a 1987 incident that rocked the company and led to the forced resignations of several top executives. During the bankruptcy proceedings of an advertising agency called Hanley Worldwide, allegations arose that three Anheuser-Busch officersâpromotions manager John Lodge, wholesale operations vice president Michael Orloff, and sales head Joseph Martinoâhad accepted kickbacks and payoffs. The bankruptcy proceedings charged that Lodge had accepted $13,500 toward the purchase of a Porsche and included allegations that Orloff and Martino may have taken questionable payments.
Orloff and Martino maintained their innocence, and Lodgeâs lawyer said Lodge wasnât knowingly involved in wrongdoing. Although the company had a strict policy against employees accepting gifts from business associates, Martino, who eventually resigned, said such behavior was âpart of the corporate cultureâ at Anheuser-Busch, and reports of other managers accepting gifts began to leak out. The firings of those allegedly involved didnât suffice for the image-conscious August III, who turned to Dennis Long, the companyâs second-ranking executive and one of his closest friends, for answers. As head of the brewery, all three men had reported to him. Long wasnât able to quell the pressure from August III, and he resigned, assuming responsibility for the executivesâ alleged infractions.
It was a painful pill for The Third to swallow. Long was his protégé, frequent traveling partner, and closest business confidante, and he had been one of the architects of the companyâs golden era versus Miller in the 1980s. He had been Anheuser-Buschâs âinspirational leader,â said one former executive, the perfect complement to detail-obsessed August. The Thirdâs determination to cut away Anheuserâs cancer superseded his ties to his friend. âAugie does not forgive,â said one former executive.
Life at Anheuser-Busch changed noticeably after that, and largely for the worse. The Third had seized control of 38 percent of the U.S. beer market, but he suddenly found himself lacking a CEO for his all-important brewery division and sporting a headless sales staff. To fill the gap, he announced that he would assume Longâs former duties and act as president of the beer subsidiary.
Wall Street analysts expected him to quickly identify a new brewing head, and several names were circulated. Instead, August III told investors that he would hold both jobs for at least two years. He proceeded to do that and more. Nearly three years later, with The Third still pulling double duty, the St. Louis Post-Dispatch ran a column that read like a âHelp Wantedâ advertisement for Longâs former position.
âHe wasnât going to promote anyone into any position of importance within the company because he really, frankly, didnât trust anyone,â said one strategy committee member. âThat was a turning point. The minute he lost confidence in the people around him, it became a very difficult place to work. I could tell how much distrust there was of people in general because of the sting the company had endured, and Mr. Busch in particular.â
That distrust only fueled The Thirdâs unwillingness to delegate authority or to allow his views to be challenged. He was looking to
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