A-B InBev Trademarks 40+ Airport Codes

June 16, 2012 By Jay Brooks

Here’s a strange development. Remember Anheuser-Busch InBev filed trademark applications for over a dozen telephone area codes a few months ago. Speculation ran high that they were planning on duplicating the success of their recent acquisition, Goose Island Brewing, and their 312 Urban Wheat Ale, named after the local Chicago area code, but nobody could say for sure. This past Monday, the U.S. Patent and Trademark Office granted ABI a 6-month extension to submit their mandatory “Statement of Use” forms, meaning we’ll have to wait a bit longer to discover exactly how they’re planning on using those area codes.

Pro Brewer is now reporting — though the original sources are Evan Benn on St. Louis Today and Jenn Litz at Craft Business Daily — that ABI has spent over $12,000 filing similar applications to lock-up over 40 airport codes, including “LAX (Los Angeles), SFO (San Francisco), MIA (Miami), BOS (Boston) and LGA (New York LaGuardia).” Again, no word on what the plan is for them, but it would have to be for a beer name, wouldn’t it? What else could it be? Surely not just making sure no one else uses them? ‘Cause that would be kinda evil. What’s next, famous zip codes? Two-digit state codes? There was a great joke Lily Tomlin used to tell in her stand-up act. “I love it how New York City named their streets after all the famous numbers.”

Big Changes At A-B InBev

January 23, 2012 By Jay Brooks

Wow, there’s a lot going over at Anheuser-Busch InBev, and besides the slip in sales of their core brands. Last week, rumors abounded that ABI was planning to roll out some version of 100% Share of Mind, which had been the “unofficial” policy until a few years ago, when it became unworkable. I wrote about it four years ago as it started to wane in Losing Their Share of Mind, and you can get the history and background of the policy there, assuming you’re unfamiliar with it. In a nutshell, A-B insisted that their distributors focus ONLY on A-B and A-B-related brands, and there were ways they had for dealing with those distributors that didn’t toe the line. And it worked well enough while A-B brands were selling well, but when they began to slip, it became harder to enforce and harder for distributors to remain profitable without taking on non-A-B brands, especially craft brands.

According to Beer Business Daily, ABI “is again turning up the leverage with Sales Opportunity Teams starting next week.” Apparently “Sales Opportunity Teams” (SOT) is the new buzzword for it this time around. They continued:

The SOTs, which A-B chief Dave Peacock has repeatedly said are not punitive in nature, will certainly be uncomfortable for distributors with growing competing brands in the house, as they try to explain this or that competing display or tap handle on the floor.

It’s got to be even harder this time, with craft beer riding a wave, with great growth, higher rings and consequently more profits. Sell less, make more. Hard to walk away from that, but of course having the best-selling brands is also pretty attractive, too. So what’s a distributor to do?

Today, the other shoe dropped, as Anheuser-Busch President Dave Peacock — and the last of the pre-InBev top executives — resigned effective today. According to ProBrewer

Peacock was one of the few remaining high-level holdovers who had stayed with the company after it was acquired in 2008 by InBev. He was only one of two non-Busch family members to hold the title of CEO.
Peacock is well liked by wholesalers and is known as reasonable, fair and an advocate for the second tier. The latest pressure on wholesalers by InBevAB may certainly have prompted Peacocks departure.
Peacock began his career at A-B in 1992 and was promoted to president in 2008 in the wake of the acquisition after serving as VP-marketing since late 2007. Many U.S. executives departed after the InBev takeover, but Peacock was handpicked by the new owners to lead the U.S. operation.

Harry Schuhmacher, in his Beer Business Daily, broke the news this morning, calling it “a watershed moment in the history of A-B since its acquisition by InBev.”

Coincidence? Hard to imagine the two developments are completely unrelated, especially since Beer Business Daily, presumably working from a press release, states he’s leaving “to spend more time with his family and pursue other business interests.” I’m always more than a little suspicious when that’s the official reason for leaving, as it so often is in circumstances like this one.

Peacock is succeeded by Luiz Fernando Edmond, who until today was the Zone President of North America. Oh, and Bud Light Platinum is coming soon, in the cobalt blue bottle, and should be on store shelves as early as this week. They’re calling it a “game changer,” but I tend to think these other two developments will change the beer landscape far more than a Bud Light line extension.

bud-light-platinum-sixer

Pearls Before Swine On A-B InBev

December 21, 2011 By Jay Brooks

comics-2
Today’s comic strip Pearls Before Swine, written by former San Francisco attorney Stephan Pastis, took a funny swipe at Anheuser-Busch InBev. [Thanks to Motor for sending me the strip.]

pearls-before-swine-beer

High Alcohol, Low Calories: Bud Light Platinum

November 8, 2011 By Jay Brooks

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This is a bit of a head scratcher. Though it’s been rumored for a while now, apparently it is coming, as AdAge is reporting that the TTB has given label approval for Bud Light Platinum. Though thought to be somewhere between 6% and 8% a.b.v., AdAge indicated the new low-calorie beer will weigh in at 6% and have 137 calories. Regular Bud Light is 4.2% a.b.v. and has 110 calories. And as regular Budweiser is 5% and 145 calories, it’s hard to see the point. Apparently, the idea is “to tap into the rising popularity of craft beers, which tend to be fuller bodied with more alcohol.” Sure, just throw in some alcohol, that should fool people. Apparently they’re missing the point that craft beer drinkers want flavor, not just higher octane. But given how successful the big brewers have been at convincing people to drink low-calorie light beers, I have little doubt this couldn’t work, too, however illogical I find the very notion of light beer.

ABI has also apparently registered the domain name budlightplatinum.com, but it’s not yet an active website. There’s not even a placeholder there so it may be some time before we see the actual beer. ABI has also not yet made an official announcement or sent out a press release.

Bud-Light-Platinum

Area Code Beer

July 7, 2011 By Jay Brooks

After Anheuser-Busch InBev‘s recent acquisition of Goose Island for just under $40 million, it seems they may be taking a page from the Chicago microbrewery’s success. One of Goose Island’s most popular beers is 312 Urban Wheat Ale, named for the Chicago telephone area code.

Officially known as the Telephone Numbering Plan, it was first implemented only in large metropolitan areas in the late 1940s, and was nationwide by 1966. Until the number of area codes exploded due to fax machines, beepers (remember beepers?) and then mobile phones, many cities became closely associated with their area codes, being recognizable at once to anyone in the know. Thanks to such positive associations — not to mention being a tasty brew — Goose Island’s 312 became their best-selling beer, especially in their local market.

It appears that ABI is hoping such positive associations with local area codes will work as well in other cities as it has in Chicago. Earlier this year, in May, they applied for a federal trademark for the area codes in fourteen metropolitan areas. So far they’re seeking a trademark for 202 (Washington, D.C.), 214 (Dallas), 216 (Cleveland), 303 (Denver), 305 (Miami), 314 (St. Louis), 412 (Pittsburgh), 415 (San Francisco), 602 (Phoenix), 615 (Nashville), 619 (San Diego), 702 (Las Vegas), 704 (Charlotte), and 713 (Houston). I’m a bit surprised that both New York (212) and Philadelphia (215) are both missing from the list. Both seem more well-known to me than several on the original list. So far, there’s no information about ABI’s plans for the trademarks, whether it’s to market the Urban Wheat branded for specific markets or to do different beers in each city. But it’s certainly possible we could see some version of the beer below at some point in the future. Stay tuned.

415-mockup

Anheuser-Busch InBev Buys Goose Island

March 28, 2011 By Jay Brooks

goose-island
I received a press release this morning that Anheuser-Busch InBev is buying a controlling interest in Goose Island Brewing. ABI will pay $22.5 million for a 58% share of the Chicago brewery and the remaining 42% currently owned by the Craft Brewers Alliance will be sold to ABI for an additional $16.3 million in cash, bringing the total price of the sale to $38.8 million. The Chicago Tribune is reporting that “[a]n additional $1.3 million will be invested to increase production at Goose Island’s Fulton Street brewery” and that the “transaction is expected to close by the end of June.”

From the press release:

Chicago-based Goose Island, one of the nation’s most‑respected and fastest-growing small brewers with sales concentrated throughout the Midwest, today announced it had agreed to be acquired by Anheuser‑Busch, its current distribution partner, in a move that will bring additional capital into Goose Island’s operations to meet growing consumer demand for its brands and deepen its Chicago and Midwest distribution.
Goose Island’s legal name is Fulton Street Brewery LLC (FSB). Anheuser-Busch reached an agreement to purchase the majority (58 percent) equity stake in FSB from its founders and investors, held in Goose Holdings Inc. (GHI), for $22.5 million. Craft Brewers Alliance Inc. (CBA), an independent, publicly traded brewer based in Portland, Ore., that operates Widmer Brothers, Redhook and Kona breweries, owns the remaining 42 percent of FSB and reached an agreement in principle to sell its stake in FSB to Anheuser-Busch for $16.3 million in cash. Anheuser‑Busch holds a minority stake (32.25 percent) in CBA.
Goose Island sold approximately 127,000 barrels of Honkers Ale, 312 Urban Wheat Ale, Matilda and other brands in 2010. To help meet immediate demand, an additional $1.3 million will be invested to increase Goose Island’s Chicago Fulton Street brewery’s production as early as this summer.
“Demand for our beers has grown beyond our capacity to serve our wholesale partners, retailers, and beer lovers,” said Goose Island founder and president John Hall, who will continue as Goose Island chief executive officer. “This partnership between our extraordinary artisanal brewing team and one of the best brewers in the world in Anheuser-Busch will bring resources to brew more beer here in Chicago to reach more beer drinkers, while continuing our development of new beer styles. This agreement helps us achieve our goals with an ideal partner who helped fuel our growth, appreciates our products and supports their success.”
Hall will continue to be responsible for Goose Island beer production and the expansion of Goose Island’s Chicago brewery, where production will continue and its business will still be based.
“The new structure will preserve the qualities that make Goose Island’s beers unique, strictly maintain our recipes and brewing processes,” Hall said. “We had several options, but we decided to go with Anheuser‑Busch because it was the best. The transaction is good for our stakeholders, employees and customers.”
Anheuser-Busch has distributed Goose Island brands since 2006 as part of an agreement with Widmer Brothers Brewing Co. of Portland, Ore., a co-founder of CBA, that provides Goose Island access to the network of independent wholesalers that distribute Anheuser-Busch beers. Anheuser‑Busch also provides logistical support to all Anheuser‑Busch wholesalers distributing Goose Island and CBA beers as part of that agreement.
“These critically acclaimed beers are the hometown pride of Chicagoans,” said Dave Peacock, president of Anheuser-Busch, Inc. “We are very committed to expanding in the high‑end beer segment, and this deal expands our portfolio of brands with high-quality, regional beers. As we share ideas and bring our different strengths and experiences together, we can accelerate the growth of these brands.”
The two Goose Island brew pubs are not part of the deal, but will continue in operation, offering consumers an opportunity to sample Goose Island’s award-winning specialty beers and food selections.
As part of CBA’s agreement to sell its 42 percent block in FSB to Anheuser-Busch, in addition to cash, Anheuser-Busch will provide enhanced retail selling support for CBA brands, will reduce distribution fees payable by CBA to Anheuser‑Busch and will provide CBA additional flexibility with respect to future acquisitions and divestitures.

In a separate press release today, Goose Island announced that Brett Porter will become Brewmaster of the production facility, replacing longtime brewmaster Greg Hall. Porter’s most recent brewing job was with Deschutes and he’s also brewed at Portland Brewing and a couple of UK breweries.

UPDATE: Goose Island founder John Hall has released a short statement about their acquisition by ABI, which they call a Special Announcement.

More On The Possibility Of An ABI / SABMiller Merger

February 9, 2011 By Jay Brooks

abib
You’ll no doubt recall the Interwebs were lit up last week with the idea of an Anheuser-Busch InBev merger with SABMiller, which was started by Credit Suisse analysts engaging in speculation. While there were some reports to the contrary, the two mega-beer companies were not in talks.

Yesterday, apparently Credit Suisse followed-up their report by saying, after fueling such a flurry of speculation, that “nobody in our diverse pool of responders indicated that we are off the mark.” They further suggest that ABI “could come knocking” on SABMiller’s door before the end of this year.

As usual, there’s more to it, such as stakes in Grupo Modelo are part of the equation. You can read more about those at Beer Business Daily, which again I heartily recommend that everyone get a subscription to Harry’s newsletter.

ABI To Include Stella Artois In Super Bowl Ads

January 21, 2011 By Jay Brooks

stella-artois
Anheuser-Busch traditionally pulls out all the tops for the Super Bowl, one of the most-watched television events of the year, especially for their core demographic. And that looks to be true for this year’s game, as well. But according to a report from Advertising Age yesterday, they’ll be trying something new this year.

The biggest overall change is that “instead of running nine ads for a total of five minutes, as it did last year, A-B will air five ads that run over three-and-a-half minutes.” The ads themselves will be similar to past efforts. But 2011 will mark the first time they’ve deviated from their core brands of Budweiser and Bud Light. One of their spots, a 60-second ad, will be for the uninspired Belgian lager Stella Artois under the banner of a new campaign, “She is a thing of beauty.”

I’m fairly certain this isn’t the ad they’ll be running, but this one was supposedly directed by Wes Anderson and Sophia Coppola.

Despite the Marin Institute’s incessant complaining about alcohol advertising during the Super Bowl — oh, the horror, why won’t anyone think of the kiddies? — of the 28 planned advertisers, only one is an alcohol producer, Anheuser-Busch InBev. So not only are they misplaced about who watches the Super Bowl, but seeing as a mere 3.5% — exactly one — of the advertisers are alcohol producers it hardly seems worth all the hue and cry they’ve raised. Of the 3-4 hours of the game, just 3-1/2 minutes are taken up by beer ads, representing less than 2% to under 1.5%, depending on how long the game ultimately runs. Even at that, it assumes anyone watching would be glued the set the entire time, a dubious proposition at best, especially applied to children. But the Marin Institute won’t be happy until they’ve “freed the bowl” from even those three and half minutes.

Personally, I’m looking forward to this year’s Super Bowl, especially if my beloved Packers manage to win on Sunday. It’s been more then a decade since I’ve actually cared about who wins the game, it would sure be nice to have someone to root for this year.

ABI Suing Baseball Over Exclusive Beer Rights

November 12, 2010 By Jay Brooks

Today in U.S. District Court, for the Southern District of New York, Anheuser-Busch InBev filed a lawsuit asking for a declaratory judgment against Major League Baseball. In “Anheuser-Busch, Inc. v. Major League Baseball Properties, Inc.,” ABI alleges that MLB “reneged on a renewal of its beer sponsorship rights this year and demanded ‘exponentially higher’ fees.” Back in April of this year, ABI believed it had reached a deal to renew its long-standing status (over 30 years) as the “official beer of baseball,” but apparently the baseball league tried to renegotiate the deal “due to ‘a change in marketplace dynamics,’ according to the lawsuit.” Naturally, MLB was seeking to increase the amount of money they would receive from ABI and also wanted to negotiate with rival beer companies for the same rights. The lawsuit asks the court to enforce the April deal and further prevent “MLBP from negotiating with any other brewers for sponsorship rights. The lawsuit doesn’t request money damages.” Baseball’s position is that the April deal was not binding and that they could “offer sponsorship rights to Anheuser[-Busch]’s competitors.” In addition to sponsoring the league as a whole, Anheuser-Busch also sponsors 26 of the total of thirty individual baseball teams in MLB.

The story has already been picked up by Bloomberg, Reuters, the St. Louis Business Journal and the Wall Street Journal.

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