AB Inbev to boost marketing spend

Anheuser-Busch Inbev is to increase marketing spend this year to support its premium brands and grow its customer insights offering after hailing its “innovative” marketing for contributing to a 7.2 per cent rise in revenue to $39.8bn (£26.3bn) in 2012.

ABInbevBrands-Producst-2013
AB Inbev is to develop new products and use more consumer data in 2013 in a bid to boost revenues from marketing.

The beer maker saw revenues for the quarter rise by 8.8 per cent to $10.29bn (£6.8bn) but warned sales in the first part of the year could be hit by lower beer volumes in key markets such as China and the US.

Despite the warning, the company posted its first volume increase in the US since 2008 last year following the successful launches of new premium beers such as Budweiser Black Crown, a stronger version of the American classic and Bud Light Lime-A-Rita, a margarita drink.

Full-year total volumes were flat, rising by 0.3 per cent as losses in Central & Eastern Europe (-11.3 per cent) continued to impact sales. In the UK, volumes tumbled by 8.3 per cent as a result of growing competition on the off-trade and a weak industry.

The business said it will now ramp up the activity around its premiumisation strategy for brands including Stella Artois and Budweiser as part of a wider move to increase spend on sales and marketing by “high single digits”. The company’s strategy has focused on positioning several of its key brands as premium in its key markets through product extensions and packaging changes.

The investment will also see the business grow its analytics offering as it looks to develop“in-depth” insights into consumers’ drinking preferences to develop new products including non-alcoholic drinks.

It is hoped the activity will open new drinking occasions and help stimulate sales.

The brewer said: “We are using in-depth insights into consumer preferences to develop new products that can be enjoyed responsibly on more occasions. We believe that our efforts to develop global brands, grow the premium segment, expand consumer choice, and share more enjoyment occasions with consumers will contribute to the long-term success of both AB InBev and the beer industry.”

Meanwhile rival Heineken said it will boost the marketing support for its premium word beer brands such as Birra Morretti and Desperados after reporting a 7.4 per cent rise in full year revenues to €18,4bn. The brewer is hoping to drive up value sales in Western Europe after the region was the only one of the brewer’s regions to see a fall in sales.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here