"We've decided to go with two agencies and split the
responsibilty," Paul Chibe, Anheuser-Busch InBev's U.S.
VP-marketing, told Ad Age today. "When we looked at creative
capability insights [and] insights into the cultural fabric of the
U.S., these firms distintuished themselves from the others ... and
came across as highly complementary to the business need of Bud
Light."
Anheuser-Busch InBev spent more than $276 million in measured
media on Bud Light in the U.S. in 2010, according to Kantar Media.
The two agencies beat out a host of shops believed to include indie
shop Droga5, MDC
Partners' CP&B, as well
longtime incumbent Omnicom Group's DDB , which was cut from the
list in October. That marked the end of a nearly
30-year relationship between DDB and the brewer.
St. Louis-based Cannonball, also a Bud Light incumbent, will
remain on the roster handling promotional work and other duties.
Cannonball is also expected to get a Super Bowl ad this year, and
Translation and McGarryBowen are expected to have ads in the big
game as well, Mr. Chibe said. One of the Super Bowl ads is expected
to feature Platinum, which is seemingly aimed at the younger,
partying crowd that has increasingly gravitated to spirits. For
McGarryBowen -- which will run the account out of Chicago -- the
Bud Light win is a huge boost to close out 2011, but also presents
a new challenge. It thrusts the agency under perhaps its brightest
spotlight yet, as it will need to create ads that strike a humorous
tone -- taking the agency out of its comfort zone of
emotionally-driven, sometimes sappy ads for brands like Disney and Kraft Foods.
The agency is also coming on board as AB InBev looks to
revitalize the brand under the watchful eye of AB InBev global
executives such as CEO Carlos Brito, who has called the
acceleration of Bud Light growth the "No. 1 priority in the
U.S."
McGarryBowen breifly worked with the brewer last year on ads --
and that seemed to work in their favor. "They've done work with us
in the past. So we know they've been very good. They were able to
connect the strategy to the creative and also about where we need
to go," Mr. Chibe said.
Bud Light still commands an overwhelming market lead of 19.1% of
the U.S. beer market, according to Beer Marketer's Insights. But
like other big brands, Light has lost ground of late in the face of
the economic downturn and stiff competition from spirits and
smaller craft beers.
In recent years, the brewer increasingly turned to a
project-oriented model for Bud Light, relying on a handful of
roster shops for work, as well as the occasional spot from outside
agencies. Indeed, McGarryBowen got its first shot while pitching
ads for the Super Bowl, which the brewer ultimately ran during the
playoffs. But the parties quickly moved their separate ways and it
did not seem any new work was on the horizon. However, a new
opportunity arose this summer when AB InBev decided to take a fresh
look at Bud Light agencies shortly after Mr. Chibe took the
marketing reigns in June. The brewer cast a wide net, seeking new
ideas not just for ads, but packaging, events and other areas.
Mr. Chibe -- who came to the brewer from candy giant Wm. Wrigley
Jr. -- was looking to keep the humor in Bud Light's ads, but with a
bit more sophistication. Bud Light's current "Here We Go" campaign
has drawn criticism from some
beer-marketing observers who have derided the spots as overly
sophomoric. (Supporters of the strategy note that Bud Light has
historically been at its best when it employs over-the-top humor
that appeals to beer-swilling guys.)
Mr. Chibe today suggested that Bud Light's recent humor formula
was too one dimensional. "Dog bites guy in the ass. People laugh,
drink a beer that 's kind of where the humor [was]," he said. "We
fell into a formula and that always becomes a problem." Going
forward, he said the brand would diversify its humor. "Our
consumers are smart people and we need to communicate to them like
the are smart people."
Mr. Chibe has some familiarity with Translation -- which
recently split from Interpublic in an effort to branch out from its
multicultural-marketing roots to rival general market firms -- from
his time at Wrigley. Translation's founder, Steve Stoute,
previously worked with Wrigley on gum marketing, including a 2008
project for re-recording jingles by pop stars such as Chris Brown
for Double Mint, Juicy Fruit and Big Red.
Mr. Chibe said he liked the agency because they "know where
America is going. If you're not able to prepare the brand to be
relevant to the changing face of America, you're not going to be a
leading brand."
The economy -- not necessarily marketing -- are to blame for
some of Bud Light's recent woes, as unemployed blue collar beer
drinkers spend less on big brands. After growing slightly in 2008,
Bud Light shipments declined by 2.5% in 2009 and 1.8% last year,
according to Beer Marketer's Insights. Still, trends have improved
this year, with unit sales of cases up 0.11% in the 52 weeks ending
Oct. 2, according to SymphonyIRI, which tracks grocery sales
excluding Walmart Stores
and liquor stores.
Some of the brand's fresh momentum could be coming from its new
NFL sponsorship deal, which is costing the brewer an estimated $50
million a year for six years. The NFL-themed spots now airing are
by Cannonball and mostly pay homage to the passion of NFL fans,
while linking the nation's most popular sports league to Bud
Light.
The Bud Light agency change follows other big moves at the
brewer, including bringing in Publicis Groupe 's Starcom
USA to assist with media duties. The agency, which got the
assignment in November, will handle U.S. media planning and
research duties, working in tandem with in-house unit Busch Media
Group.
~~~
Contributing: Rupal Parekh, Maureen Morrison
