USA: Budweiser Select ranks among top new products of 2005

Anheuser-Busch announced on March 3 that Budweiser Select, the new kind of beer introduced nationally by Anheuser-Busch in 2005, ranked second among the best-selling new food and beverage brands of last year, according to sales data released by Information Resources Inc. (IRI), an independent consumer products research firm.

Budweiser Select grossed more than $123 million in sales in 2005*, according to IRI data. Although more than 1,500 new beer, wine and hard liquor products were introduced in 2005, Budweiser Select accounted for a full 45 percent of sales of all new beer, wine and hard liquor purchases. Even more remarkable is that 28 percent of those sales are incremental, coming from adults who previously were not buying beer.

“We’re very proud of what our brewmasters have accomplished with Budweiser Select. It truly is a new kind of beer, and we’re thrilled with how much adult beer drinkers enjoy it,” said August Busch IV, president, Anheuser-Busch, Inc. “Budweiser Select, with its bold taste and clean finish, is truly elevating the image of beer. It not only appeals to beer lovers who are looking for a more upscale premium brew, but is bringing new consumers into the beer category.”

Capitalizing on Budweiser Select’s upscale image and ability to attract new consumers to the beer category, the brand recently launched a new advertising campaign during the Olympic Winter Games utilizing stylish lifestyle settings that display imagery of elegant home dining, casual sports, artwork, time spent with friends, and preparing for a night out. The ads, titled “Band” and “Veranda,” elevate consumers’ awareness and understanding of the brand’s attributes by showing how it fits into their modern lifestyles, and establishes the Budweiser Select crown as an icon.

Created by Minneapolis-based Peterson Milla Hooks and directed by renowned music video guru Dave Meyers, the ads feature cutting-edge beats from popular UK band “Chemical Brothers,” and introduce smooth lyrics pioneered by rapper “Q-Tip.” The ads are complemented by a print advertising campaign that will focus on lifestyle-oriented publications such as Wired, Esquire, Fast Company and Cigar Aficionado, along with a newly redesigned web site featuring gender-specific content provided by AskMen.com and iVillage.com, and navigable by a unique, uptempo subway system map.

IRI's Top 10 New Products include brands launched between February 2004 and January 2005. To qualify, the brands also must have achieved at least $7.5 million in first-year retail sales in food, drug and mass outlets, excluding Wal-Mart and convenience stores. Only 20 percent of products introduced in the consumer packaged goods category reach revenue of $7.5 million or more, and less than 1 percent of new products in the category reach annual sales of at least $100 million, according to IRI.

Based in St. Louis, Anheuser-Busch is the leading American brewer, holding nearly 50 percent share of the U.S. beer market. The company brews the world’s largest-selling beers, Budweiser and Bud Light. Anheuser-Busch also owns a 50 percent share in Grupo Modelo, Mexico’s leading brewer, and a 27 percent share in Tsingtao, the No. 1 brewer in China. Anheuser-Busch ranked No. 1 among beverage companies in FORTUNE Magazine's Most Admired U.S. and Global Companies lists in 2006. Anheuser-Busch is one of the largest theme park operators in the United States, is a major manufacturer of aluminum cans and is America’s top recycler of aluminum cans.

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