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Anheuser-Busch to introduce new beer and plenty more commercials to combat slumping sales

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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.

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Last updated: November 26, 2009: 04:10 AM

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