AB InBev faces ad spending backlash from workers as Teamsters strike deadline looms

The maker of Bud Light is receiving blowback for its advertising, as a deadline approaches for a major strike that could throw a wrench into U.S. beer production ahead of the key summer drinking season. On the cusp of what would be the first work stoppage in nearly half a century at Anheuser-Busch InBev in the U.S. by the International Brotherhood of Teamsters, the company has yet to strike a deal before its Feb. 29 deadline. Sign up for Ad Age newsletters From influencer marketing to agencies, get the latest news and analysis delivered to your inbox Click here Aside from standard grievances like wages and benefits, the union has also called out the company’s spending on marketing. Anheuser-Busch spent $3.5 billion in the first six months of 2023—and during that period lost customers due to a promotion with a transgender influencer that backfired.Look back: 5 ways the Bud Light fiasco changed beer marketing Since then, it’s spent even more on marketing deals in a battle to win back customers, and aired an ad celebrating its workers on X, the platform formerly known as Twitter, that rubbed some of them the wrong way. Some employees who saw it said Anheuser-Busch should prioritize investing in the workers by negotiating a stronger Teamsters contract, union spokeswoman Kara Deniz said. Read more about AB InBev’s ‘That’s Who We Are’ campaign “We’re looking at job security, and they’ve spent tens of millions of dollars on a couple of Super Bowl ads,” said Jeffrey Padellaro, a director for the Teamsters representing employees in the brewery, bakery, and soft drink industries. Anheuser-Busch said it has a continuity plan in place to keep operating. It didn’t respond specifically to questions about the union criticizing its marketing spending. “Our top priority remains securing a contract that recognizes and rewards the talent, commitment and drive of our employees,” spokesman David McKenzie said. After union members voted to authorize a strike in December, the company aired three Super Bowl ads in a season where 30-second spots were estimated to cost $7 million each—starring the likes of Peyton Manning and Lionel Messi. The best and worst Super Bowl ads Ad Age reviews the Big Game commercials Click here Anheuser-Busch also recently inked sponsorship deals with the Ultimate Fighting Championship and the International Olympic Committee. Read more: Why AB InBev is returning to the Olympics “We have made advertising spending an issue,” Padellaro said of the company, which increased global marketing 13% in the first six months of last year over 2022’s spending. Elsewhere, pressure has piled on Anheuser-Busch over Bud Light, which was the U.S.’s most popular beer until April—when the now infamous promotion of the brand by transgender personality Dylan Mulvaney led to boycotts. The industry is also facing a decline in the volume of beer sales in America, with the rising popularity of hard seltzers and more young consumers choosing cannabis. First strike since 1976 looms Now about 5,000 workers are prepared to strike at 12 breweries across the U.S., without a five-year contract that gives them better health care, job security and wages. If they walk off the job, it would mark the first Teamsters strike at Anheuser-Busch in the U.S. since 1976, according to Deniz. As of Tuesday, the company hadn’t responded to the union’s request for a best and final offer, Deniz said. Still, as summer approaches, it’s unclear if the company will be able to keep brewing in the event of a strike, Bloomberg Intelligence analyst Duncan Fox said. “Beer has a finite shelf life, so if there is a strike, retailers will buy another beer to fill the space,” Fox said. Beer advertising has already been a point of contention in labor strife this year. At Molson Coors, the Teamsters went on strike this month at a brewery in Fort Worth, Texas, citing the company’s increased spending on marketing, even while it didn’t meet union demands on wages or benefits. Molson’s chief communications officer, Adam Collins, said the company respects the union’s right to strike, and has contingency plans. Molson also ran a Super Bowl ad—this one with LL Cool J. —Bloomberg News Subscribe to Ad Age Sign up now for the latest industry news and analysis Click here

AB InBev faces ad spending backlash from workers as Teamsters strike deadline looms

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