A-B InBev Reorganizing Sports Sponsorships, Marketing Strategies

Writer Says Changes Are Response To A Recession That Has Cut Beer Consumption

A-B InBev in recent months has been "shaking up its marketing ranks, scaling back or renegotiating exclusive sports sponsorships and moving to cut compensation for its ad agencies," according to Holly Sanders of the N.Y. POST. Industry sources said that the moves "signal a shift away from A-B's long-held approach to advertising." A-B for years "relied on a barrage of TV spots, and sports sponsorships to reach young men." But the changes are an "obvious response to a worldwide recession that has cut beer consumption." A-B InBev "acknowledged it is making changes in its strategy to better target consumers but said some of them were in the works before" InBev took over in November, and "not all were the result of cost cuts." A-B InBev VP/Marketing Keith Levy said that he still "expects the company's ad spending to remain at or near the same level, while he said A-B is actually spending more on sports sponsorships." Sanders reports A-B spends an estimated $500M annually to "buy and place ads." In addition, A-B InBev earlier this month said that it was "changing the way it paid agencies and cutting ties with those that it didn't use as much," while the company on Wednesday "pulled the plug on Bud.TV" (N.Y. POST, 2/20).

WELCOME TO N.Y.: In St. Louis, Jeremiah McWilliams reported A-B InBev's "proposal to set up a 'functional management office'" in N.Y. has "been approved" by the company's BOD. A company memo signed by A-B InBev CEO Carlos Brito indicated that "preparation for the establishment of the office 'will start now.'" McWilliams noted the N.Y. office "will focus on the company's operations, and it will house (at least part of the time) top A-B InBev officers such as Brito." But N.Y. "will remain subordinate" to InBev's global HQs in Leuven, Belgium (STLTODAY.com, 2/19).