Bud Sales are Slipping, Spurring an Agency Review – Could the Hispanic Market be the Solution?


By Max

Budweiser and Bud Light are not just global beer brands, they are the two largest global beer brands. And sales have been sliding down – at least among American consumers.
ABInBev – parent company to Anheuser-Busch, producer of Budweiser and Bud Light – is kicking off a global media planning and buying review, inviting its six major holding companies to pitch.

Their biggest problem is one that is becoming increasingly common to mass beer producers: More consumers are choosing imported and craft beer.

In 2015, overall beer sales sank by .2%, while craft beer sales soared, up by 12.8%. In fact, over the past 5 years, domestic sales of Budweiser and Bud Light have fallen significantly (but 2/3 of Budweisers are consumed outside of the U.S.).

The question for the competing creative agencies is: Can Bud win back the American people?

There is one segment of Americans that just might be the untapped resource they need: Hispanic Americans.
ABInbev (Bud Light and Budweiser) Pitch Brief

Currently, ABInBev spends just 10% of their media budget on Hispanic channels – a telling hint that they’re not concentrating on this demographic as much as they should be.

Because Hispanic Americans love their beer.

In fact, they over-index in their consumption of beer compared with other consumer groups.
ABInBev isn’t completely oblivious to this market – they recently introduced Estrella Jalisco in 10 states. But to understand this audience, they need to know how they differ from the typical Bud Light drinker.

And they do differ, though they have many similarities too.

bud light consumer analysis

Meet the Hispanic Beer Consumer

Like Bud Light consumers, the Hispanic Beer Consumer is male, between the ages of 25-34, and love cars, food, sports and social drinking. Personality-wise, both audiences show inventive, curious and creative personality characteristics, and they respond well to bright colors and passion-packed language.

But Hispanic Beer consumers spend time a little differently than their Bud Light counterparts. Their favorite sports are soccer, volleyball and basketball. They’re more likely to follow the Copa America and the World Baseball Classic, and far more likely to read magazines and adopt social networking apps.

Bud Light fans are more into American football, combat sports and golf.

Hispanic Beer Consumers analysis

And, while both groups like to eat – Bud Light fans prefer snacks and only enter the kitchen to grab more beer from the ‘fridge. Hispanic beer consumers are interested in gourmet cooking, following websites like Hispanic Kitchen.

Considering that Hispanics are the largest ethnic group in the U.S., with more than $1 trillion in spending power, beverage companies like ABInBev can’t afford not to take notice. But, even with the Hispanic audience, the brand will face a familiar challenge – Hispanic beer consumers, especially millennials, prefer craft and imported beer too.

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Topics: Knowledge; Infographic; New Business Pitch