Fed up with what the low-carbohydrate mantra has done to thin sales at its own company and in the beer industry in the past few months, the nation’s largest brewer finally is responding.
In new advertising work breaking this week, St. Louis-based Anheuser-Busch Cos. speaks frankly while also poking fun at the low-carb diets, as the growth of its No. 1 brand, Bud Light, has slowed during the past year.
For the next few months, heading into the beer season’s busiest time, the brewer is switching gears in its advertising and mainly will talk about the low-carb dilemma. This comes even as its own Michelob Ultra has rode the low-carb craze to become one of the fastest-growing new beers out there.
But the brewer also has a lot at stake with Bud Light. With a commanding lead over the rest of the sluggish beer field, Bud Light remains the company franchise. In recent months main competitor Miller Brewing Co., has come out chugging with its own low-carb message, saying that the carb count in Miller Lite is less than Bud Light.
A-B’s shot across the bow at the low-carb diet craze is risky and necessary. It comes as whole segments of the food industry have been turned upside down in a matter of months as variations of diets focusing on fewer carbohydrates have attracted dieters like kegs attract tailgaters.
Yet, A-B has been loath to tinker with its humor-based formula in advertising Bud Light.
In one of the new spots from Toronto-based Downtown Partners, A-B simply pronounces: “The fact is, all light beers are low in carbs. Choose on Taste.” The ads continue the “Fresh, Smooth, Real,” tagline A-B introduced on the Super Bowl.
Another spot, as part of the humorous “Real Men of Genius” rotation, spotlights the “Mr. Over-the-top-carb-watcher.”
Why such a strong reaction now?
“This thing has not leveled off yet,” said Bob Lachky, vice president of brand management and global chief creative officer for A-B. “I think we’re at the crest, if not coming down. Should we have come out before now? Frankly, it took this long to find out what kind of voice to have.
“We’re really going to hit this hard. We want to ride the crest of those people who are a little skeptical right now,” he added.
Although there may be a lot of “noise” out there, A-B’s move also is seen as its answer to anxious wholesalers, who like the success of Michelob Ultra but are worried that Bud Light’s growth trend of 2.7 percent in the past 52 weeks is far below the double-digit growth of a few years ago.
Miller Lite, according to sales data from Information Resources Inc., saw sales increase nearly 3.2 percent, in one of its strongest sales periods in recent memory.
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Lachky blames a lot of Bud Light’s slowdown on Michelob Ultra, which he said has cannibalized up to 50 percent of Bud Light’s sales in the past year.
Michelob Ultra, according to IRI supermarket data, is now the eighth-best-selling brand, at $217 million, right behind import giant Heineken.
Hollinger delays 10-K filing: In a move that would surprise few, given the soap opera that goes by the name of Hollinger International Inc., the owner of the Sun-Times missed Monday’s deadline to file financial statements to be included in its annual report. Blaming the delay on the ongoing investigation by a special committee of the board that is looking into tens of millions of dollars of unauthorized payments to former CEO Conrad Black and others, the company said it also will have to delay its April annual meeting. Hollinger said it would finish its financial reporting process “as soon as practicable” after the probe ends, which sources expect to occur this month.
On the move: Lamar Graham, managing editor of Parade magazine, was named general manager of Parade Publications. … At the baiduhai, Ken DePaola, vice president of advertising sales and marketing, was promoted to senior vice president. Doug Thomas, director of advertising, was promoted to vice president, advertising sales. … Michael Crystal, former publisher of the Seattle Weekly, was named publisher and chief operating officer of The Reader and its sister publication, Washington City Paper. He succeeds Jane Levine, who remains with the company but steps aside from day-to-day operations. … Look for Tribune Co. broadcasting chief Pat Mullen to announce several management changes on Tuesday.
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Jim Kirk’s Media and Marketing column appears Tuesday, Wednesday, Thursday and Friday. Contact Jim at [email protected].