AB InBev hopes a fresh UFC deal will win back US market share as Bud sales slump
Seen Budder days… Budweiser parent AB InBev is still struggling with shrinking US sales after a conservative-led Bud Light boycott earlier this year. Yesterday, AB InBev reported that US revenue had dropped more than 13% in the third quarter — the continuation of a decline that started after a Bud Light promo with transgender influencer Dylan Mulvaney. Still, the stock popped after AB reported 5% total revenue growth (though volumes fell), helped by international sales and its other brands, like Stella and Beck’s. The beer biz also announced a $1B stock buyback.
Brew blues: This summer, Bud Light lost its long-standing title of America’s best-selling beer to Modelo (sold by booze giant Constellation Brands in the US).
From light beer to lightweight champs… As it fights to regain US market share, last week AB struck a six-year marketing partnership with the Ultimate Fighting Championship. FYI: Bud Light replaced Modelo Especial as the UFC’s official beer (Bud last sponsored the UFC in 2017). The nine-figure deal is said to be the largest marketing promotion in mixed martial arts history. Starting January 1, Bud Light’s brand will get exclusive placement at UFC fights. The beer maker will also collab on original UFC content.
Target market: With its UFC partnership, AB InBev is re-creating ties with a sports org that’s often associated with more conservative political leanings than other US leagues.
UFC Pres Dana White donated $1M to support the 2020 Trump campaign and was a speaker at the Republican National Convention.
FYI: AB InBev also said it’ll focus Bud marketing on outlets like the NFL, college football, and country-music fest Stagecoach.
Marketing = alignment… Partnerships can help a brand connect with its target consumers. Marketing campaigns — even smaller ones, like the Dylan Mulvaney promo — can affect a company’s sales for several quarters. A recent marketing win: Kim K’s Skims became the official underwear brand of the NBA and WNBA this week, which could boost its new men’s line.