I saw a story in The Wall Street Journal last week discussing what is being called a "rare" slump for Anheuser-Busch InBev. The company saw volume sales fall for Bud Light for the first time in the beer's 27-year history. Dollar sales of Bud Light dropped 2.5% (compared to a year earlier) in the U.S. during the 13 weeks that ended on July 12. Volume sales were 5.5% lower.
So, what can Bud do to rev up sales? How about a new advertising campaign with more than 15 new television commercials and new retail displays. When the American football season begins, the new ads will inundate our television screens and it will further the beer's "Drinkability" campaign that began a year ago.
Here is the problem for Anheuser-Busch. Their commercials are normally among the funniest on television, but there is no way to make "drinkability" funny. I mean seriously, a guy drawing with a magic pen to demonstrate that Bud Light is easy to drink? Not funny, not creative, not going to sell beer. So the geniuses at Anheuser-Busch have decided that they will keep "drinkability" in the ads, but they will try to turn the focus from the word and concept and onto the beer.
Bottom line, the company has strayed too far from the formula that worked for them in the past: humorous commercials that sold the beer. Until the beer behemoth goes back to these type of ads, I believe it will continue to lose ground.
On to another move that the brewery is making: introducing a new beer. Recently, word got out that Anheuser is going to test market a beer called Select 55. This new beer will be touted as "the world's lightest beer," competing with MillerCoors' Miller Genuine Draft 64. If this new trend of lighter beers continues, pretty soon we could be drinking Bud Select 0, H2O.
The article takes a look at how Anheuser has been a day late and a dollar short when it comes to Miller's innovations (the article provides a laundry list of beers and dates introduced). Is introducing a new beer any better than introducing a new advertising campaign? I believe it will have more impact, but it may not do much for sales in the long run. Anheuser is again reacting to Miller's success, providing more validity to its competition.
There are enough people out there who will try the new beer that it could provide a quick boost to Bud's slumping sales. But let's see if this new move will help the company in the long run.











Reader Comments (Page 1 of 1)
8-18-2009 @ 1:33PM
ajackson7738 said...
Millers is an American owned product if I'm not mistaken. Bud is owned by those from another country. This could be reason for their slumping sales. I'll never buy another Bud, they sold out and so have I. Millers is better anyway.
8-18-2009 @ 3:05PM
douglasfir72 said...
@ajackson7738
Miller actually is owned by SABMiller (South African Breweries) which was created in 2002 when it was purchased from the Altria Group.
The reason for slumping sales is that there are much better choices for the consumer. Don't count out on trends either. Just look at the assortment of flavored vodkas now available.(YUCK). If you want to drink a beer because its american, I am sure there are plenty of local microbrews around your area that produce a beer thats a thousand times better than anything AB or Miller/Coors makes.
8-18-2009 @ 5:48PM
armondpeaslee said...
what this beer company need to do is increase the alcohol level in each beer to 20-25% alcohol for each beer,i will guarantee you that you will see a significant sell off in beers in huge quantity
8-19-2009 @ 10:00AM
Brewer 666 said...
The author for to put the parenthesis around the word geniuses. The current senior management team can't even spell the word 'creative'. I'm sure the new beer flavored water will sell well. The instrumentation will be hard pressed to read the low alcohol levels this beer will have. It's approaching an NA beer.