Beer Giants’ High-Stakes Marketing Play Amid Industry Downturn
The Super Bowl LVIII is set to be more than just a showdown on the gridiron. It represents a critical juncture for the beer industry, which has encountered significant headwinds over the past two years. The sector has witnessed a stark decline in US beer shipments, plummeting to a 25-year nadir in 2023, with a 9% decrease to 196 million barrels over the preceding two years. This downturn is the result of a confluence of factors, including boycotts spurred by political and cultural issues, as well as a consumer pivot towards hard seltzers and liquor.
In this challenging environment, beer titans are preparing for a consequential Super Bowl Sunday. Anheuser-Busch InBev, the brewer behind Bud Light, is particularly intent on rejuvenating its brand presence. The company has grappled with hurdles, notably a backlash from an endorsement that precipitated a sharp decline in Bud Light sales. In a bid to revitalize its image and re-engage with its customer base, Anheuser-Busch is leveraging nostalgia through a Super Bowl advertisement that brings back its emblematic Clydesdale horses in a piece dubbed “Old School Delivery.” This initiative is a key element of a wider campaign to refurbish the brand’s reputation.
The advertisement, one of three Super Bowl spots from Anheuser-Busch, seeks to reclaim the wit that once positioned Bud Light as America’s premier beer brand. The company’s endeavors are receiving an unanticipated endorsement from former President Donald Trump, who commands a substantial following among beer consumers. His personal abstention from alcohol, he has called for a renewed embrace of Bud Light.
While Anheuser-Busch strives to reclaim its market position, its adversaries are not idle. MolsonCoors, which has enjoyed a 20% uptick in its shares amid an expansion into non-beer products, is also making waves this Super Bowl. The company is set to broadcast a commercial starring LL Cool J and the Coors Light Chill Train, a direct challenge to its competitors. This assertive marketing strategy mirrors the robust performance of Coors Light and Miller Lite, which have registered sales growth of 11.8% and 6.7%, respectively.
In a contrasting move, Constellation Brands, the company behind Corona, has decided to forgo Super Bowl television advertising this year. The absence of Constellation Brands from the Super Bowl advertising frenzy marks a stark departure from the high-visibility campaigns of its rivals, indicating a divergent marketing strategy during one of the year’s most prominent advertising showcases.
As the beer industry approaches Super Bowl LVIII, brands like Anheuser-Busch InBev and MolsonCoors are seizing the moment to fortify their market presence and rekindle consumer connections. Through inventive advertising and strategic brand positioning, these firms aim to surmount recent obstacles and revitalize their public personas. The unfolding narrative of these brands’ efforts to navigate through a period of flux will undoubtedly hold lessons for the broader industry, as they attempt to chart a course back to growth and relevance in the eyes of consumers.
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