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11.20.2009 2:48 pm

Budweiser’s global advertising director speaks

St. Louis Post-Dispatch
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We would like to thank St. Louis University for the delicious coffee and pastry we enjoyed this morning, as well as for the interesting discussion of Budweiser’s global prospects. That discussion touched off the Boeing Institute of International Business‘ conference at SLU today.

Andrew Sneyd, Budweiser’s global advertising director, gave a half-hour presentation to a packed house at SLU’s Busch Student Center. The main theme: how Anheuser-Busch InBev is shepherding Budweiser around the world.

Sneyd is a Canadian whose previous responsibilities under InBev included managing the Budweiser brand in Canada, where Budweiser is the No. 1 beer and InBev brewed it under contract with Anheuser-Busch.

Twenty years ago, the “consolidation” of the beer industry through mergers and takeovers hadn’t even started, he said. Now, Anheuser-Busch InBev is the world’s biggest brewer and has 13 brands with sales of $1 billion or more. It considers three of those brands - Beck’s, Stella Artois, and Budweiser - to be “global.”

Sneyd said Budweiser represents a great selling point across the world. It’s a huge brand, and people see it as international. They notice it and recognize it. It has the “voltage, impact [and] pull power” a brand needs to make it on a worldwide scale, he said. Budweiser is the only beer brand on the global BrandZ ranking of top 100 brands. (It is No. 52.)

In China, the world’s biggest beer market, Budweiser occupies an enviable position. It sells at a price about eight times higher than that of local Chinese beers, Sneyd said. One reason may be that the American brand seems to represent the American dream, which resonates with many hard-working and ambitious Chinese consumers: “Pulling yourself up, anything can happen,” as Sneyd put it.

In a question and answer period, the moderator asked: What about Anheuser-Busch’s reputation, pre-InBev, for sparing no expense and doing things first-class all the way? “All we’re seeing now is cost-cutting, cutting back,” said the questioner, who wanted to know how Anheuser-Busch InBev reconciles InBev’s cost-cutting with Anheuser-Busch’s storied brands.

The merged brewer wants to be “a true owner of the brand,” said Sneyd. “We have an ability to take dollars that aren’t consumer-facing and put them back towards the consumer.”

Sneyd said traditional media, such as TV and radio, “is not dead” despite the proliferation of alternative forms of entertainment. “The best way to get a message out into the marketplace is a 30-second ad,” he said.

But social media like Facebook can’t be treated like an afterthought, cut off from the company’s mainstream advertising efforts, Sneyd said. Anheuser-Busch InBev has to force itself to think of Web marketing first. “It can’t just be part of the annual business planning process,” said Sneyd.

A questioner wanted to know if Anheuser-Busch InBev’s marketing philosophy came from InBev, or Anheuser-Busch. “There’s a tremendous amount of marketing power that Anheuser-Busch had in this country,” Sneyd answered. A year ago, InBev’s marketing blueprint was different. It now incorporates elements of Anheuser-Busch’s “learning,” he said.

Meanwhile, Anheuser-Busch InBev has recognized that corporate responsibility - what the company calls “global citizenship” - is “the new frontier of the marketing department,” Sneyd said. Marketers have to be involved in the company’s work in the areas of responsible drinking, recycling, and charitable giving, he said.

“It’s how brands are being judged,” he said.

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20 comments

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Lager Heads — Great title!

— smalltownguy
3:12 pm November 20th, 2009

VERY interesting that the new Bud global director is Canadian and an InBev protege. Is this the first of more changes to unfold for the STL marketing team?

— dogg
3:20 pm November 20th, 2009

I don’t like Kurt Greenbaum

— bob
3:30 pm November 20th, 2009

Funny thing, when I was in China last year, all the Bud bottles I saw on store and restaurant shelves were dusty from neglect and not being purchased. And in 2006, AB paid a billion dollars to be the exclusive beer during the World Cup games in Germany. Except very few people bought Bud during the games, waiting until they left the stadiums, so they could get good beer. AB was good at marketing, but they still can’t produce good beer. To quote Monty Python: “American beer is like making love in a canoe.” “Making love in a canoe?” “Yep, it’s f-king close to water!”

— drumming umpire
3:41 pm November 20th, 2009

That’s exactly what I was thinking…the “American Lager” is now being managed by a Canadian. Adolphus is all spun out…

— duff man
3:44 pm November 20th, 2009

Anyone who thinks “American beer is like making love in a canoe”, feel free to take your dumb self to Schlafly and order an American owned and American brewed Reserve Imperial Stout, then tell me American beer is watery.

— b
4:35 pm November 20th, 2009

“There’s a tremendous amount of marketing power that Anheuser-Busch had in this country”. Yeah, that because it was the old AB which was America’s Beer, as far as I am concerned AB has died with the Inbev hostile takeover.

— Lady Liberty
4:45 pm November 20th, 2009

Anheuser-Busch is now a soul-less carcass of it’s former self. InBev is not a beer company and they know nothing about how to market beer to American consumers. Why do you think they are so keen on focusing on selling Bud outside of the United States? Can they draft off of their U.S. brand equity? They may be experiencing short term profits due to sell-offs of non-performing assets and forced increases in beer prices, but that isn’t a long term growth strategy. They had to sell off $7 billion in assets to reign in all of the debt they’re laden with. Think about who they sold to — vultures like Blackstone and CVC Capital. Haven’t we learned anything? These are leveraged buyouts people - can’t you see the writing on the wall? These companies will be driven into bankruptcy resulting in more layoffs and higher unemployment. Short term gains. Don’t buy Anheuser-Busch products and let’s watch BE:ABI tumble!

— bw
7:40 pm November 20th, 2009

the new commercials are lame and not the quality that has won A-B awards for years. Too light, too heavy — lame ridiculous commercials. And no surprise since the best of the best in St. Louis have been let go, including the great minds behind the wonderful commercials. Brings tears to my eyes remembering how great A-B was, and what it is becoming. A shell of a company, with tasteless commercials, and money hungry leaders. When are they selling the Clydesdales?

— was A-B
10:58 pm November 20th, 2009

Lady liberty, you have been raging on ab-inbev for a year now. Get over it, you can only influence what’s in your control. There’s nothing you can do about it!

— John
7:30 am November 21st, 2009

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