SBD/15/Sponsorships Advertising Marketing

ANHEUSER-BUSCH ENDS RELATIONSHIP WITH AD AGENCY

     Anheuser-Busch Inc. has ended its 79-year relationship with
D'Arcy, Masius, Benton & Bowles, the ad agency that made
Budweiser "one of the most recognizable product names in the
country."  A-B announced that it was turning all of its
advertising for Budweiser over to DDB Needham, which already
handles the creative work for Bud Light and Budweiser's Ice
Draft.  It has been estimated that A-B spent $104M advertising
Budweiser last year.  The staff at D'Arcy's office in St. Louis
"was stunned by the news. ... There had been no public sign of
dissatisfaction with the agency."  Execs "refused" to say why A-B
dropped D'Arcy, but industry analysts "said two factors probably
were at work."  Budweiser is in its 6th year of moderate declines
and A-B was already using other ad agencies, so cost efficiency
may have played a part (Robert Mano, ST. LOUIS POST-DISPATCH,
11/15).  Other clients D'Arcy has recently signed:  Blockbuster
Entertainment, cereal maker Ramcorp., TWA and Enterprise Rent-A-
Car (AP, 11/15).  A-B's move is one of the "largest domestic ad
account changes in Madison Avenue history" (USA TODAY, 11/15).
Besides A-B leaving, Amoco put its $30M account with D'Arcy in
review last month after 40 years with the agency (WALL STREET
JOURNAL, 11/15).
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