BRUSSELS -- Anheuser-Busch InBev CEO Carlos Brito outlined four “commercial priorities” the brewer will focus on in the coming year.
Coming off a year in which “total revenue grew by 6.3% [and] volumes of our global brands grew by 7.3%," Brito said on a Feb. 25 earnings conference call that the company will aim to:
- Grow its global brands by leveraging the potential of Budweiser, Stella Artois and Corona.
- Create excitement and aspiration in beer, especially with millennials, by bringing “new energy and variety to the beer experience.”
- Elevate the core by raising the perception and relevance of its major core brands through differentiated messaging and large scale activations.
- Develop the near-beer segment to compete for a greater share of total alcohol.
In the United States, sales results haven’t been quite as positive, thought the brewer remains optimistic.
“In the U.S., we estimate industry STRs (sales to retailers) were down by only 0.3% in fiscal year 2015, and marginally up in [the fourth quarter],” the company said.
A-B’s total sales volume in the United States was down 2.2% in 2015. STRs of lead brands Budweiser and Bud Lite were both “down low single digits.”
So how will AB InBev’s global priorities play out in the United States? Brito offered some insight.
“Growing our global brands [in the United States] means a deep focus on Stella Artois and Budweiser," he said. “Our craft portfolio, as well as Stella Artois, play key roles in 'premiumizing' and invigorating beer [to appeal to millennials].
“Elevating our core brands of Bud Light, Budweiser and Michelob Ultra is our top priority in the U.S., while developing the near-beer segment is important in growing our share of total alcohol.”
Digging deeper, Brito acknowledged that “Bud Light had a challenging year in terms of market share, in part due to a tough 2014 comparable when the brand benefited from the Whatever USA campaign, the FIFA World Cup and the rollout of the aluminum bottle.”
The company is looking for its refreshed brand identity and its Raise One to Right Now campaign, which debuted during the 2016 Super Bowl, to help turn things around.
Though STRs of Budweiser were down this past year, Brito said, “2015 was a great year for Budweiser, with the brand delivering its best STR trend in more than a decade.” That, he said, was driven by campaigns emphasizing the brand's quality and heritage credentials, supported by refreshed packaging. “The Brewed the Hard Way campaign has struck a chord with many beer drinkers,” he said, “and we continue that message through the Bud & Burgers summer campaign and more recently the 2016 Not Backing Down Super Bowl campaign.”
Michelob Ultra had a very good year in 2015, with sales up 15%, according to Brito, citing IRI data. The company aims to maintain that moving forward.
“Ultra is a lifestyle brand, with powerful differentiators from the rest of the beer category,” he said. “Increased media pressure is paying off, and for the first time in five years we advertised Michelob Ultra at the Super Bowl with the brand's new 2016 platform, Brewed for Those Who Go the Extra Mile.”
Turning to "premiumization" and invigorating beer, the main driver in attracting more millennial customers, Brito said the company is counting on Stella Artois (double-digit volume growth in 2015) and Goose Island IPA (up more than 150%) to do much of the heavy lifting.
“Shock Top had a more difficult year, but we have exciting plans in place for 2016,” he said. “All of our new craft partnerships are showing good growth trends and collectively grew double digits in 2015, making an important contribution to our wholesalers' portfolios.”
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