USA: Main giant rivals fighting for Hispanic beer market

Anheuser-Busch the main rival of Miller Brewing, is intending to increase its marketing to Hispanics, about a year after Miller began a major push to conquer this market segment. Milwaukee Journal reported on October 25 that Anheuser-Busch, the brewer of Budweiser and Bud Lite, is increasing spending in its advertising to Hispanics by 66 %. The St. Louis-based company plans to spend $60 million on Hispanic media in 2006, about 11 % of its estimated $550 million total advertising budget in 2004.

The brewer Anheuser-Busch holds about a 50 % market share in the United States and is the top brewer in the Hispanic market through its 50 % ownership in Mexico City-based Grupo Modelo, which exports five brands, including Corona products, and is the exclusive importer and distributor of Anheuser-Busch's products in Mexico.

In an attempt to capture a larger share of the Hispanic market, Milwaukee-based Miller started a major marketing effort in late 2004 to reach that audience. Miller's efforts include an October 2004 advertising and marketing arrangement with Spanish-language broadcaster Univision Communications Inc., Los Angeles, worth more than $100 million; and sponsorship of a November 27, 2004, boxing match between super lightweights Marco Antonio Barrera and Erik Morales, both natives of Mexico.

One of the main targets of Miller's marketing are Hispanics who have newly immigrated to the United States and who are tending to be heavily influenced by top consumer brands, including those produced by the main competitor - Anheuser-Busch.