This Ad's For You: A-B Insists Sports Marketing Will Not Diminish
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A-B Insists Sports Marketing Will Continue
Despite Impending InBev Takeover |
Anheuser-Busch execs said that the brewer's "ubiquitous sports marketing will keep rolling" despite the impending takeover of the company by Belgium-based InBev, according to Jeremiah McWilliams of the ST. LOUIS POST-DISPATCH. A-B VP/Global Media & Sports Marketing Tony Ponturo said things are "business as usual. All systems 'Go.'" McWilliams notes despite "deep skepticism among some industry observers," InBev CEO Carlos Brito "insists he does not plan to cut [A-B's] advertising." Brito watched Tuesday's MLB All-Star Game at a St. Louis bar and "reportedly was impressed when the cameras showed the large Budweiser signs inside Yankee Stadium." A-B VP/Marketing Dave Peacock said that InBev has "deep experience promoting its beer through soccer in South America and hockey in Canada." Ponturo said, "You invest your sports dollars because that's one great way to connect with consumers and get your message across. The key is, you have to continue to do the right thing that make[s] sense for our brands" (ST. LOUIS POST-DISPATCH, 7/18). The AP's Emily Fredrix reported spending on sports marketing and sponsorships "could increase" under InBev. Ponturo: "There's nothing at all for those of us that are at the pulse of all this to suggest that our sports are cutting back at all." Brito said that he knows A-B's "ability to reach consumers through sports is one of the reasons it's such an attractive brand." InBev also has indicated that it "plans to make Budweiser and Bud Light into worldwide icons such as Coca-Cola and Pepsi" (AP, 7/17). The AP offered a look at A-B's sponsorships in sports.
DEALS STILL GETTING DONE: A-B Thursday extended its sponsorship with the USOC through 2012, renewing its position as the organization's exclusive malt beverage. A-B has been an USOC sponsor since '84 (A-B). Sources familiar with the terms of the deal valued it at $10M over four years. That is roughly half of the more than $20M A-B spent for the previous quad, '05-08 (Tripp Mickle, SportsBusiness Journal). Meanwhile, in next week's SPORTSBUSINESS JOURNAL, Terry Lefton reports Ponturo revealed prior to the All-Star Game that he had "finalized a multiyear extension of A-B's NBA sponsorship." Ponturo also "confirmed industry reports of a deal with the new Yankee Stadium, giving the beer company a clean sweep of rights at the new sports venues in and around New York" (SPORTSBUSINESS JOURNAL, 7/21 issue).
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Ponturo Claims A-B Is Proceeding
"Business As Usual" |
NO CAUSE FOR ALARM: In an interview with SportsBusiness Daily/Journal, Peacock and Ponturo spoke about possible changes to A-B’s sports spending. When it was noted the industry is concerned A-B is "going to turn off the spigot," Peacock said, "The truth is, they [InBev] are adamant about investing in brands. They aren't shy about investing. So I don't think we're going to see any pullback in our marketing in general, and especially not in sports." When asked if the brewery can reassure everyone that is assuming the worst, Ponturo said, "We were scratching our heads about all the gloom and doom when it comes to our sports spending from all these so-called experts. We haven't had any conversations [with InBev] or suggested to anyone that we would be pulling out of sports" (THE DAILY). For more, see Monday’s issue of SportsBusiness Journal.
WHAT OTHERS ARE SAYING: When asked about the possible impact of the deal on A-B’s sports investments, food consultant Chris Bigelow said, “Everybody is concerned, more from the team side, with the possibility of reduced sponsorships with fewer breweries. It’s too early to tell. InBev has no marketing presence in [the] U.S., they may let Bud recommend how they think business should be done here in the U.S.” He added, “From a concessions standpoint, it won’t make a big difference.” Wasserman Media Group Marketing President Jeff Knapple: “There will be no big impact initially. They still need to maintain share and distribution on a global basis.” Knapple feels InBev’s sponsorship philosophy is not totally divergent from A-B’s. Knapple: “They are doing the same things with their brands in Europe, it’s just that nobody over here knows about it. InBev’s philosophy is not as far apart [from A-B’s] as people say.” Red Sox Exec VP and Chief Sales & Marketing Officer Sam Kennedy: “Everybody assumes there will be changes, but the people responsible for Bud and the other brands have done an incredible job, so InBev would be well suited to keep a similar strategy with respect to sports” (THE DAILY).
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