Tags: BUD | beer | marketing | Busch

Anheuser-Busch Turns to Marketing for Boost

By    |   Friday, 26 Aug 2011 09:32 AM

A book can’t be judged by its cover, but should a beer be judged by its can? Marketing gurus at Anheuser-Busch InBev (BUD) seem to think so. They are betting a redesign will help the company get back some of the market share it has lost in key markets recently.

For its mainstay Budweiser beer, Anheuser-Busch recently unveiled a new can design emphasizing the Budweiser creed, which highlights the beer’s aging process and “135-year long commitment to quality,” and makes the beer’s bowtie logo more of a focal point. The new cans, the 12th redesign since Budweiser was sold in cans beginning in 1936, will begin rolling out around the world later this year.

BUD needs a boost. During the company’s second quarter reporting in early July, Anheuser-Busch tried to paint over news of its shrinking market share in the United States and Brazil by highlighting major growth in sales in China. Beer volumes in what is now the company’s third-largest market grew by 12 percent, helping to bring net profits to $1.45 billion from $1.15 billion the quarter before.

Despite volume losses of 1.5 percent in the United States and Canada and 2 percent in Brazil, BUD points to exceptional sales during 2010’s second quarter thanks to the World Cup in South Africa.

BUD execs know its key markets are vital and demand new, fresh, and fun. Spear Inc. has teamed with Anheuser-Busch to introduce a new interactive label for Bud Light. The labels, printed in Tennessee, incorporate metal activation technology that allows consumers to customize their bottle by using a coin or key to write a message or draw an image.

Poor economy

Marketing professors at the Olin Business School at Washington University don’t expect the new design to make much of a difference, especially those looking for cheaper brands due to poor economic conditions, according to the St. Louis Business Journal. The same was true was Coca Cola (KO) reintroduced its classic contour bottle shape, which they hoped would increase sales. Little difference was made, they said.

Anheuser-Busch was upgraded by Bank of America in mid-August to buy from neutral. Earnings are due again on Sept. 11.

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A book can t be judged by its cover, but should a beer be judged by its can? Marketing gurus at Anheuser-Busch InBev (BUD) seem to think so. They are betting a redesign will help the company get back some of the market share it has lost in key markets recently. For its...
BUD,beer,marketing,Busch
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2011-32-26
Friday, 26 Aug 2011 09:32 AM
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