Major League Baseball and Budweiser: Why InBev’s purchase of Anheuser-Busch won’t ruin the great American tradition
By David Sweet
As the Tampa Bay Rays and Philadelphia Phillies gear up for the first game of the World Series, differences abound. Tampa Bay, for instance, was born a decade ago; the Phillies first played in the 19th century. The Rays’ home is an indoor stadium scoffed at for its lack of atmosphere, while the Phillies perform in the inviting Citizens Bank Ballpark with a view of downtown Philadelphia.
The two franchises do share one thing in common: Budweiser is their official beer. In fact, the King of Beers is an official sponsor of 26 Major League Baseball teams.
But with InBev’s $52 billion purchase of Anheuser-Busch complete, some experts believe Anheuser-Busch’s massive sports marketing budget will be imperiled. The Belgium brewer has a history of cost-cutting, they warn, and A-B’s sports marketing budget — which shells out more than $300 million worldwide on sponsorships and more than $200 million in the U.S. on advertising, according to Nielsen Media Research and SportsBusiness Journal — would be a prime target. Not only that, return on investment in the sports marketing field is notoriously hard to gauge.
Yet Anheuser-Busch is still completing hefty pacts, and InBev seems to understand the importance of the sports-marketing field. Says Andrew Bergstein, associate director for the Center for Sports Business & Research at Penn State University: “In terms of the success of Bud and Bud Light, the excellent campaign fusing these brands to the psyche of American beer drinkers through sports marketing has played a large role. Logic would suggest InBev would want to continue this strategy.”
So far, InBev hasn’t stood in the way. This summer, A-B extended its NBA sponsorship and its United States Olympic Committee sponsorship, now good through 2012. In New York City, the company has jumped into the two new baseball stadiums scheduled to open in 2009, securing a deal in Yankee Stadium this summer on top of its pact to gain exclusive in-stadium signage for Budweiser and Bud Light at Citi Field.
Looking ahead, A-B has reportedly planned 10 Super Bowl spots for February during the priciest commercial time on television. The company regularly spends at least $20 million around the big game.
“I think we’re going to stay very aggressive,” said Tony Ponturo, an A-B sports marketing executive, during the Fox Business “Money for Breakfast” show. “Sports has worked for us.”
No beer company spends more on U.S. sports marketing than A-B through its Budweiser brands, and any cuts would give an opening to rivals such as MillerCoors. At the moment, A-B has locked up a good portion of the pro sports market: Budweiser and Bud Light are the official beers of Major League Baseball, Bud Light has served as the NBA’s official beer for a decade, and Bud Light also has pacts with 21 National Hockey League teams and is the official beer sponsor of the league.
And even though Budweiser is not the official beer of the NFL — Coors holds those rights — the perception among many football fans is different. For decades, Budweiser commercials (including memorable spots by the Clydesdales and croaking frogs) have dominated the Super Bowl and charmed its 93 million U.S. viewers. Anheuser-Busch holds exclusive alcohol beverage sponsor rights for the Super Bowl telecast run for four more games.
If anything, InBev might be tempted to focus on sports marketing to increase Bud’s reach outside the U.S. A-B brands sold internationally make up less than 5 percent of the company’s volume, a stunningly low number given how well-known Budweiser is worldwide. InBev has promoted its beers through global sports such as soccer and hockey, so there is plenty of precedent for the brewer to shell out money on sports marketing.
The Boston Red Sox may be upset that Tampa Bay, not they, advanced to the World Series after a seven-game battle. But for fans of the 180-seat Budweiser Right Field Roof in Fenway Park, there’s some consolation that Bud should be sticking around for a long time in Boston. Throughout the country, Budweiser’s aggressive sports-marketing strategy looks to be safe, regardless of who’s in charge of the brand.
David Sweet writes the weekly SportsBiz Spotlight column for MSNBC.com.
