anheuser-busch 2005AR_DomesticBeerOperations


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anheuser-busch 2005AR_DomesticBeerOperations

  1. 1. This is who I am. In 2005, Anheuser-Busch sold more than 2.5 times the volume of the second-largest brewer in the United States.
  2. 2. D o m e s t i c B e e r O p e r at i o n s This is beer. Anheuser-Busch is the leading brewer in the United States, with a 48.8 % market share. Since its founding more than 150 years ago, As the industry leader, Anheuser-Busch will leverage Anheuser-Busch has been a leader in the beer industry. highly targeted marketing and innovative products and With nearly 50 percent of the U.S. domestic market packages to make great beer…and make beer great. share, a portfolio of more than 40 brands, and This is beer… 12 breweries strategically located throughout the United States, Anheuser-Busch has the resources in The company’s trademark brand families — Budweiser, place to enhance beer industry volume, while continuing Michelob, Busch and Natural — play a key strategic to meet the changing needs of today’s consumer. role as the volume drivers of the company. Marketing Despite a challenging year for the brewing industry, for these brands focuses on their unique imagery and beer remains the most-consumed alcohol beverage by product points of difference. New advertising, such adults in the United States by a wide margin, repre- as Budweiser’s “Anthem” campaign, helped to reenergize senting 57 percent of alcohol beverage servings. In and reinforce the brand experience in 2005, establishing 2005, Anheuser-Busch shipped 101 million barrels, a strong image and quality foundation for the entire more than 2.5 times its closest domestic competitor, Budweiser family. and its U.S. market share was 48.8 percent. Budweiser continues to be Anheuser-Busch’s flagship In 2005, Budweiser family sales-to-retailers were up brand. In 2005, Budweiser brought the world-famous nearly 2 percent and gained almost one share point in Clydesdales to communities across the United States supermarkets, according to IRI data. Anheuser-Busch’s during the “Clydesdales Across America Here’s to the domestic beer shipments to wholesalers declined Heroes Tour.” The 28-city tour honored America’s 1.8 percent as wholesaler inventories were reduced military with an interactive display and mobile studio significantly. Domestic wholesaler sales-to-retailers where visitors could record personal messages to increased 0.2 percent, selling day adjusted, for the year. share with the U.S. military, courtesy of Budweiser. Sales-to-retailers improved significantly in the More than 13,000 Americans recorded messages that second half of 2005. Anheuser-Busch is focused on reached their loved ones through Armed Forces Radio sustaining this momentum by executing its key strategies: and Television Service at U.S. military outposts in Elevating and enhancing the image and more than 177 countries. The exhibit also chronicled relevance of beer Anheuser-Busch’s 150-year commitment to the military. Making our brands the preferred beer choice 9
  3. 3. D o m e s t i c B e e r O p e r at i o n s drink recipes that feature beer as the primary ingredient. As part of its commitment to creating new beverages that appeal to today’s adult consumer, Anheuser-Busch formed the Innovation Group, charged with developing new beverages through brand extensions and beer category expansion. New offerings include malt beverages, flavored beers, and beers such as BE, which combines fruit flavors with caffeine and guarana. Another new malt brand, Tilt, debuted nationally in 2005 and featured a blend of caffeine, guarana and ginseng. The Bacardi family of flavored alcohol malt beverages also added two new flavors — Bacardi Silver Big Apple and Bacardi B U D W E I S E R C LY D E S D A L E S A C R O S S A M E R I C A On July 3, 2005, Silver Strawberry — adding to the St. Louis hosted the “Clydesdales Across America Here’s to the Heroes Tour” brand’s refreshing lineup. finale. Featuring the world-famous Budweiser Clydesdales, the tour visited Seasonal beer offerings were 28 cities and was seen by millions across the United States last year. introduced in 2005, with plans for further expansion in 2006. To Anheuser-Busch has been the launches, with more than 2 million generate excitement in the draught exclusive beer category advertiser barrels sold in its inaugural year. category, Anheuser-Busch introduced during the Super Bowl for the past Budweiser Select’s national adver- a series of limited edition seasonal 18 years. In 2006, Bud Light’s tising campaign featured U.S. beer draught brews. The Michelob “Secret Fridge” spot was voted company President August Busch IV Specialty Sampler Collection offered No. 1 in USA Today’s “Ad Meter” and underscored the brand’s sophis- a full line of Michelob brands in rankings, marking the eighth consec- tication and its “Expect Everything” a variety pack featuring Michelob utive year that Anheuser-Busch brand identity. Pale Ale and the malty Michelob has won first place in what many These actions together have Marzen. Both of these brands consider the top consumer poll for contributed to share growth for the won gold medals at the 2005 ® Super Bowl advertising. Bud Light, Budweiser family of brands during Great American Beer Festival. the world’s largest beer brand, also the past four quarters, according to Additional seasonal brews launched new advertising in 2005 IRI supermarket data. were introduced in 2005: with the theme “Always Worth It” Celebrate by Michelob and This is innovation… that highlights its fun, contempo- Brew Masters Private Reserve by rary and social positioning. The Innovation starts with a deep Budweiser. These special-edition brand also continues its presence understanding of the consumer, sipping beers, developed for the in sports through sponsorships and today’s contemporary adult holiday season and packaged in with the National Basketball consumers 21 and over crave large bottles for multiple servings, Association, the National Hockey variety more than ever before. were carefully crafted to deliver League, the majority of National To meet these changing tastes, full-bodied tastes and aromas. Football League teams and many Anheuser-Busch introduced more Additional seasonal brands are other sports properties. than 30 new products and encour- planned for 2006 to further Budweiser Select, the newest aged consumers to experiment with Anheuser-Busch’s objectives addition to the Budweiser family, new flavors and different ways to of competing for high-end beer was introduced nationally in 2005. enjoy beer. The company also occasions and gaining retailer This was one of the company’s developed drink innovations — support over other alcohol most successful new product beverages during the holidays. 10
  4. 4. D o m e s t i c B e e r O p e r at i o n s Partnerships played an impor- throughout the year, such as product and packaging innovation, tant role in providing expanded St. Patrick’s Day, Cinco de Mayo Anheuser-Busch increased its sales choices for Anheuser-Busch custom- and the World Series. Budweiser force and committed additional ers in the growing craft and import and Bud Light also offered team- resources to off- and on-premise beer segments. Anheuser-Busch specific packaging to highlight their marketing. The company deployed formed a new group to develop “official beer sponsorship” of 28 brewing and marketing “ambassa- alliances, increase focus in this National Football League teams. dors” and contemporary marketing category and leverage its long- teams — dedicated sales teams who This is commitment… standing relationships with quality meet with owners, wait staff and craft brewers, such as Redhook and The Anheuser-Busch wholesaler consumers — to help sell Anheuser- Widmer Brothers. In addition to partnership provides the company Busch products in key markets these craft brands, the current with a strong competitive advantage. across the country. This increased Anheuser-Busch portfolio of alliance Nearly 70 percent of the company’s focus on “hand-to-hand selling” brands includes Japan’s Kirin volume is sold through exclusive enables Anheuser-Busch whole- brands, Kona beers from Hawaii, wholesalers, increasing focus on the salers to work more closely with and Harbin, a new entry to the sales of Anheuser-Busch’s products. retailers at the local level and gain U.S. market from Anheuser-Busch’s Anheuser-Busch is committed in-depth knowledge of consumer wholly owned China subsidiary. to providing the right marketing behaviors and emerging trends. and sales tools to wholesalers and On-premise activities also This is enjoyment… retailers throughout the country include high-image and high- Variety comes in many sizes for and demonstrated this in new impact draught beer presentation, today’s adult consumers, and and innovative ways in 2005. In new European-style draught innovative new packaging styles addition to increasing its focus on towers, upscale glassware and and shapes remain a cornerstone of Anheuser-Busch’s plans to This is true. elevate the image of beer. In 2005, Anheuser-Busch launched aluminum bottles nationally. The versatile new packaging is ideal for contemporary adults who want a stylish looking beverage when out at a club, bar or upscale restaurant. Anheuser-Busch’s aluminum bottles were so well- received that demand temporarily exceeded supply. In addition, the national rollout of the applied plastic label was completed in 2005. The clear label is found on Bud Light and Budweiser Select packaging and enhances the premium image and appeal of the brands. 1 3 Anheuser-Busch also is using “shrink-wrap” technology to create Budweiser is Budweiser Select limited-edition packages throughout the top-selling is one of the most the year. This technology applies premium beer in successful new a form-fitting vinyl plastic wrap 2 to bottles that can be easily the world. beer launches in customized. Bud Light offered Bud Light is the the history of the festive shrink-wrap package designs top-selling light brewing industry. for the winter holidays and will beer worldwide. highlight other special events 11
  5. 5. D o m e s t i c B e e r O p e r at i o n s In addition to marketing and MULTICULTURAL media programs, Anheuser-Busch MARKETING Latin pop star supports nearly 400 community- Angelina, national based local and national Latino spokesperson organizations and special events. for Education During the past 20 years, the com- Is Freedom, pany has contributed nearly $50 performed her million through programs such as hit “Caliente” at the Mets’ annual Budweiser Homerunazo!, a program Hispanic Heritage benefiting the Hispanic Scholarship Night, sponsored Fund (HSF). In cooperation with by Budweiser. 16 Major League Baseball teams, Anheuser-Busch and its distributors contributed $100 to HSF and other local charities each time home team players hit a home run. Commitment was not limited to marketing and product innova- tion. During 2005, Anheuser-Busch expanded point-of-sale materials, celebration, and Budweiser’s True continued to implement several such as creative, eye-catching tap Pioneers program, featuring posters cost savings initiatives. Brewery markers and illuminated menu of African-American musicians, modernizations, such as improve- boards. Our commitment was poets and athletes commissioned for ments to packaging line flexibility extended through the “Ambassadors Black History Month. and increased bottle line speed, of Quality” program, which allows For more than 15 years, reductions in brewery material employees to share their passion Anheuser-Busch has contributed to costs and transportation initiatives, for beer with friends and family. Asian Pacific American communities including consolidation and The company also created through a variety of programs. In improved scheduling of shipping a global industry development 2005, Michelob Light sponsored the carriers, contributed nearly team that is spearheading first-ever Music Video competition $100 million in incremental Anheuser-Busch’s efforts to at the 28th annual Asian American productivity improvement savings. enhance the image of beer and International Film Festival. Through its “One Company” generate growth for the entire The Latino market represents initiative, Anheuser-Busch stream- beer industry. The group has 11 percent of the U.S. beer industry lined operations in information taken steps to develop an industry- volume, and adult Latino drinkers technology, engineering, finance wide coalition and campaign account for 12 percent of and supply chain functions, setting that highlights beer’s role in Anheuser-Busch’s overall sales the stage for long-term cost savings American culture. volume. Anheuser-Busch has the while forming an organizational While Anheuser-Busch No. 1 and No. 2 brands in the structure poised for the future. To continues to devote resources to Latino market, Bud Light and offset significant commodity cost traditional marketing programs Budweiser, and currently holds increases incurred by most indus- and sponsorships, the company 48 percent of Latino market share tries, particularly high utility costs, has increased its focus on ethnic according to IRI data. To continue the company initiated productivity marketing. To extend its long- to reach this key demographic, the projects such as boiler control standing support of adult urban company sponsors national and improvements and process heat and multicultural consumers, local market promotions such as recovery to reduce fuel costs. Anheuser-Busch created a new team viewing parties for the Mexican As adult consumer tastes to lead marketing and community National Soccer Team and FIFA evolve, the company will continue outreach for these key customer World Cup™ Qualifier Games. to invest in the right resources to groups. Programs include deliver innovative products and Budweiser and Bud Light are also Budweiser’s sponsorship of the meaningful marketing messages proud sponsors of several Latin Essence Music Festival, the country’s that communicate the spirit and recording artists and concerts. largest African-American music quality of Anheuser-Busch. 12
  6. 6. This is innovation. Anheuser-Busch launched more than 30 new products in 2005.