Businesses should serve their consumers, communities, and their world. This belief inspired Anheuser-Busch to create Michelob ULTRA Pure Gold, America’s first mass organic beer. But as the need for organic ingredients grew, we confronted a shocking reality: Less than 1% of U.S. farmland is organic, limiting the supply of these ingredients and inflating their price. Anheuser-Busch brought together its marketers, agronomists, and supply chain team to forge a revolutionary partnership with American growers and consumers to expand organic acreage, increase the supply of organic ingredients, and build a healthier, more sustainable agricultural system for all.

Tapping into the demand of the 90% of Americans who want to buy organic, Anheuser-Busch created America’s first mass organic beer, Michelob ULTRA Pure Gold, in 2018. An instant phenomenon, it took off, growing 300% the following year. But as our need for organic ingredients increased, we found that the transition to growing organic remains unfeasible for most farmers. It takes three extremely difficult years of reduced yields, intense re-training, and finding buyers in an unfamiliar market. And government support is insufficient.

Under immense pressure to grow more, faster, and cheaper, farmers have been forced to rely on dangerous pesticides, herbicides, and artificial fertilizers, contributing to an unsustainable system that’s harming biodiversity and destroying our ecosystems. Even though organic practices have none of these effects, are safer for farmers and their families, and produce healthier, more nutrient-dense crops, only 1% of American farms are organic.

Motivated to build upon our existing sustainability commitments, Anheuser-Busch saw an opportunity to leverage our status as one of the world’s largest buyers of grain. With Michelob ULTRA Pure Gold, we could fundamentally reimagine our role, from corporate buyer to grassroots organic change agent with purpose woven into every facet of operations.

Our transformative ambitions took us to rural Idaho, where we spent time getting to know farmers and understanding the barriers they face when transitioning their land to organic. We learned that the transition takes three difficult, expensive years for soil to return to its natural state. Our vision for an organic future demanded radical action to enlist wary and vulnerable farmers.

Contract for Change is a revolutionary idea and a long-term investment in organic. Anheuser-Busch agronomists, marketers, supply chain managers, and legal teams partnered with the most important agricultural organizations, such as The Organic Trade Association, California Certified Organic Farmers, the Idaho Barley Commission, Sustainable Food Lab, and the United States Department of Agriculture to reduce farmers’ risk while transitioning to organic. And we committed to effecting real change by addressing both organic supply and demand:

1. Organic Perception: Work closely with American barley growers to shift perceptions about the organic transition, from apprehension to enthusiasm.

2. Grassroots Partnership: Feet on the ground to partner with farmers to remove the barriers to going organic and provide practical education.

3. Consumer Participation: Invest consumers in playing a part in converting American land to organic, growing demand concurrently.

Contract for Change aligns the interests of one of the largest buyers of grain with American farm families to fundamentally transform agriculture. It equips farmers for a successful organic transition by addressing the three main barriers they confront:

· Farmers sign today and are guaranteed that Michelob ULTRA Pure Gold will be their first organic customer after the 3-year transition.

· Anheuser-Busch commits to buy their crops during the transition for the production of non-organic beers at a 25% higher price, so farmers don’t lose money.

· The contract provides in-depth training in organic farming practices, through the most trusted agricultural organizations.

After a short pilot in 2019, Contract for Change was offered to all American farmers through a hyper- targeted integrated campaign, using local media and supported by national PR outreach. To drive engagement, we partnered with organic trade groups to discuss the program in farm communities.

Then, we used Michelob ULTRA Pure Gold’s platform to amplify our pro-organic message. Our 2020 Super Bowl program invited consumers to join in: For every six-pack purchased, Michelob ULTRA Pure Gold would convert an additional six square feet of farmland to organic. Now consumers could be part of the transformation too.

Contract for Change proves that creative ideas can transform an entire industry —and millions of lives.

In just two years, we’ve begun transitioning 104,000 acres —4% of America’s barley farmland— to organic. Contract for Change will triple organic barley acreage by 2023, an unprecedented contribution to the UN’s Sustainable Development Goals: smaller carbon footprints, improved soil health, and cleaner air and water.

175 farmers have signed the Contract for Change, and we’ve pledged more than $1 million for their transitional crops. By going organic, they’ll keep 12,000 pounds of toxic herbicides from the environment annually, reducing exposure for farm families and their communities.

These farms will grow organic crops for generations, producing ingredients for our beer and hundreds of other products and brands, improving the world’s access to all kinds of foods which help reduce the risks of cancer, allergic disease, and obesity.

By leading the change, Michelob ULTRA Pure Gold’s business grew 18% during the campaign, and by 2023, the brand projects to expand production by 25%, keeping pace with the explosive demand for this groundbreaking beer. This will enable us to make Contract for Change available for years to come, helping to secure the future of America’s farmland.