BRUSSELS -- Following a difficult quarter, Anheuser-Busch InBev will turn its attention to the No. 1 beer in the United States—Bud Light—in an effort to get it back on a growth track, including creating what it called “revolutionary new creative" with a new ad agency.
"Bud Light is at the top of the list [to get attention]," CEO Carlos Brito said during an earnings conference call Oct. 30. "The brand faced a tough market-share comparable this quarter after a great [third] quarter last year. We are working hard to identify the right positioning and messaging for the brand, a new creative for 2016.”
Brito estimated Bud Light’s share of total market in the United States was down approximately 45 basis points in the third quarter of 2015. Volume sales of the No. 1 beer brand were flat in both convenience stores (+0.3%) and all channels of retail (+0.1%) in the United States during the 52-week period ending Oct. 4, 2015, according to IRI data. Dollar-sales results were slightly better, up 1.3% in c-stores and 0.9% overall.
"Many of our other brands in the U.S. are performing well, and this inevitably puts pressure on Bud Light. ... As Michelob Ultra grows as a superior light beer, there was bound to be some kind of cannibalization," Brito said. "Nevertheless, we still have more work to do on the brand and are excited about our new agency partnership with Wieden+Kennedy. The initial work is very promising, and we are looking forward to introducing revolutionary new creative early next year."
This fall, Bud Light introduced its NFL tin cans, "which have been very well received by consumers," Brito said. "These cans, which are available for the 28 teams we sponsored, have resonated with fans and have helped the Bud Light brand."
Also, this past week, AB rolled out Bud Light Apple in limited release to the Georgia market.
"Bud Light [is] an amazing brand, No. 1 by far in the U.S.," Brito said. "So we are very happy to have this brand in our portfolio. On the other hand, there are gaps in terms of maybe packaging and some position of the brand that we need to refresh."
He said the growing number of alcohol-beverage options inevitably puts pressure on the biggest brands:
"Given the more options you have in the marketplace, the way the plan-o-grams are being divided by all the other brands, brands as big as Bud Light tend to suffer more because that’s where most of the share is."
Don't blame the brand, he concluded; blame the management of the brand.
"There will be some packaging refresh and visual identity, lots of things. That’s only fair for a brand of this size," he said. "We think we have been unfair for the brand, so our fault, not the brand’s fault. We don’t believe in anything about a brand having a cycle. We believe in brands that are well managed and brands that could be better managed. And Bud Light is one of those that could be better managed, and that’s what [we're going to address] next year."
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