1 00:00:00,450 --> 00:00:02,950 - [Narrator] Budweiser is a classic American brand 2 00:00:02,950 --> 00:00:04,730 but with changing consumer taste, 3 00:00:04,730 --> 00:00:06,504 can it avoid becoming a relic of the past? 4 00:00:06,504 --> 00:00:09,087 (upbeat music) 5 00:00:10,700 --> 00:00:13,800 To celebrate Memorial Day back in May 2016, 6 00:00:13,800 --> 00:00:18,000 Budweiser temporarily renamed itself simply as America. 7 00:00:18,000 --> 00:00:18,833 Think about that. 8 00:00:18,833 --> 00:00:21,270 No other beer in almost any other country 9 00:00:21,270 --> 00:00:24,080 could assume to name itself after their home nation, 10 00:00:24,080 --> 00:00:27,870 even on a temporary basis, without expecting and getting 11 00:00:27,870 --> 00:00:31,650 either widespread outcry, or just mocked mercilessly. 12 00:00:31,650 --> 00:00:34,010 Would Becks ever rename itself Germany? 13 00:00:34,010 --> 00:00:36,250 Or Guinness use the word Ireland on its cans 14 00:00:36,250 --> 00:00:38,090 in place of the brand name? 15 00:00:38,090 --> 00:00:40,830 Such as the status of Budweiser in the United States 16 00:00:40,830 --> 00:00:43,340 that not only did they do it, but it sold well enough 17 00:00:43,340 --> 00:00:45,750 to repeat the stunt a year later. 18 00:00:45,750 --> 00:00:48,860 Yet, while Bud was claiming to be the beer of America, 19 00:00:48,860 --> 00:00:51,570 the market place was telling a different story. 20 00:00:51,570 --> 00:00:54,360 Over the last decade, changing consumer tastes 21 00:00:54,360 --> 00:00:56,670 have knocked the iconic brand from its perch. 22 00:00:56,670 --> 00:00:59,010 With the rise in hard booze and wine sales, 23 00:00:59,010 --> 00:01:00,560 the explosion of craft beer, 24 00:01:00,560 --> 00:01:02,780 and the increasing popularity of light beer, 25 00:01:02,780 --> 00:01:05,580 the former king is now struggling to reclaim its throne. 26 00:01:06,510 --> 00:01:09,940 Launched in 1876, Anheuser Bush's marquee brand 27 00:01:09,940 --> 00:01:13,290 declared itself the king of beers in the 1940's. 28 00:01:13,290 --> 00:01:15,519 ♪ Budweiser beer is for folks who know ♪ 29 00:01:15,519 --> 00:01:18,020 ♪ Where's there's life ♪ 30 00:01:18,020 --> 00:01:20,733 ♪ There's Bud ♪ 31 00:01:20,733 --> 00:01:22,308 ♪ The King of Beers ♪ 32 00:01:22,308 --> 00:01:23,980 ♪ Budweiser ♪ 33 00:01:23,980 --> 00:01:26,480 That's just how advertising worked back then. 34 00:01:26,480 --> 00:01:29,790 However, the modern brand was really born in the 1980's 35 00:01:29,790 --> 00:01:32,270 when it's advertising strategy went all in 36 00:01:32,270 --> 00:01:36,250 on a single demographic, dudes who watch sports. 37 00:01:36,250 --> 00:01:38,470 Bud sales peaked in 1988, 38 00:01:38,470 --> 00:01:40,850 selling more than 50 million barrels. 39 00:01:40,850 --> 00:01:43,260 It's a brand that uses the Super Bowl to constantly 40 00:01:43,260 --> 00:01:45,360 remind people of its iconic status. 41 00:01:45,360 --> 00:01:47,980 From the ludicrous Bud Bowl ads in the late 80's 42 00:01:47,980 --> 00:01:52,770 to talking frogs in 1995 to wassup in 2000. 43 00:01:52,770 --> 00:01:53,750 Sorry. 44 00:01:53,750 --> 00:01:55,870 To a collection of adorable puppy related 45 00:01:55,870 --> 00:01:57,710 hits in more recent years. 46 00:01:57,710 --> 00:02:00,110 But the last couple of decades have arguably been some 47 00:02:00,110 --> 00:02:01,723 of its toughest on the market. 48 00:02:02,780 --> 00:02:05,530 Budweiser was the top selling U.S. beer for decades until 49 00:02:05,530 --> 00:02:09,900 2001, when it passed the crown to its sibling, Bud Light. 50 00:02:09,900 --> 00:02:12,720 Then, in 2011, Coors Light knocked Bud 51 00:02:12,720 --> 00:02:14,040 out of the second spot. 52 00:02:14,040 --> 00:02:16,590 And last year, Miller Lite took over third place, 53 00:02:16,590 --> 00:02:18,810 pushing Bud to number four. 54 00:02:18,810 --> 00:02:21,180 I spoke to Monica Rustgi, Vice President of Marketing 55 00:02:21,180 --> 00:02:22,990 for Budweiser about what they're doing to 56 00:02:22,990 --> 00:02:25,370 try to claw back that number one spot. 57 00:02:25,370 --> 00:02:27,250 - [Monica] There's two things that really are 58 00:02:27,250 --> 00:02:30,020 the driving force towards ensuring that we don't 59 00:02:30,020 --> 00:02:31,540 grow stale with time. 60 00:02:31,540 --> 00:02:33,510 And one piece is innovation. 61 00:02:33,510 --> 00:02:36,160 Most recently, in the last two years we've introduced 62 00:02:36,160 --> 00:02:39,940 the Budweiser Reserve series, which has been a huge success 63 00:02:39,940 --> 00:02:43,240 for us because it's introduced new news 64 00:02:43,240 --> 00:02:44,760 to the lager category. 65 00:02:44,760 --> 00:02:46,950 And the second thing that we're noticing has changed 66 00:02:46,950 --> 00:02:48,100 is obviously choices. 67 00:02:48,100 --> 00:02:50,860 The beer category at large is in decline as a result of 68 00:02:50,860 --> 00:02:53,770 introduction and proliferation of wines and spirits. 69 00:02:53,770 --> 00:02:57,330 Those are the realities and we've accepted them quickly. 70 00:02:57,330 --> 00:03:00,600 And what's exciting about this is whenever there's pressure 71 00:03:00,600 --> 00:03:02,810 comes forced creativity. 72 00:03:02,810 --> 00:03:05,690 You know what? Let's call our partners at 73 00:03:05,690 --> 00:03:09,300 Jim Beam and see if they would create something with us. 74 00:03:09,300 --> 00:03:11,480 Understanding that there's an existing behavior 75 00:03:11,480 --> 00:03:15,220 with consumers, you get, have a Bud and a shot of Beam. 76 00:03:15,220 --> 00:03:18,690 We're like, let's listen to what consumers are already doing 77 00:03:18,690 --> 00:03:20,810 and see if there's any new news we can bring 78 00:03:20,810 --> 00:03:21,643 to that category. 79 00:03:21,643 --> 00:03:25,280 So, we just recently released the Budweiser Copper Lager 80 00:03:25,280 --> 00:03:27,100 aged on Jim Beam bourbon barrel staves 81 00:03:27,100 --> 00:03:30,190 which has been the strongest of all of our Reserve 82 00:03:30,190 --> 00:03:32,450 offerings in the last two years. 83 00:03:32,450 --> 00:03:36,180 That's in response to a change in behavior. 84 00:03:36,180 --> 00:03:37,560 - [Narrator] But it's not just its innovation that 85 00:03:37,560 --> 00:03:38,974 the brand's had to evolve. 86 00:03:38,974 --> 00:03:41,590 Bud has also had to rethink how younger consumers 87 00:03:41,590 --> 00:03:43,773 interact with and experience the brand. 88 00:03:44,780 --> 00:03:46,224 - [Monica] Attention now, more than ever, 89 00:03:46,224 --> 00:03:47,930 is the toughest thing to fight for 90 00:03:47,930 --> 00:03:49,700 because there's more than just TV, right? 91 00:03:49,700 --> 00:03:52,390 And it's forced us to think about what are cultural 92 00:03:52,390 --> 00:03:54,440 tensions, what do consumers care about, 93 00:03:54,440 --> 00:03:56,840 what's that big idea that's gonna cut through, 94 00:03:56,840 --> 00:03:59,750 rise above, not necessarily be like 95 00:03:59,750 --> 00:04:02,270 white noise vanilla and be forgettable. 96 00:04:02,270 --> 00:04:04,500 It's all about being remarkable and memorable. 97 00:04:04,500 --> 00:04:08,350 So, it's really forced us to raise the bar 98 00:04:08,350 --> 00:04:11,770 on not only the creative we put out, the formats 99 00:04:11,770 --> 00:04:14,590 that we bring it to the world but also taking risks. 100 00:04:14,590 --> 00:04:17,360 And I think that's a very important part of 101 00:04:17,360 --> 00:04:18,850 moving the needle. 102 00:04:18,850 --> 00:04:21,040 - [Narrator] Bud is still an incredibly powerful brand. 103 00:04:21,040 --> 00:04:22,900 One that carries weight around the world. 104 00:04:22,900 --> 00:04:26,010 Synonymous with America and American pop culture. 105 00:04:26,010 --> 00:04:28,760 With recent initiatives like brewing with 100% renewable 106 00:04:28,760 --> 00:04:31,980 energy and using the Super Bowl to hype wind power, 107 00:04:31,980 --> 00:04:34,670 Bud is evolving in intriguing ways. 108 00:04:34,670 --> 00:04:36,450 - [Monica] I think the big thing that we're gonna 109 00:04:36,450 --> 00:04:41,360 continue to evolve and focus on is how we get the new 110 00:04:41,360 --> 00:04:44,370 generation to fall in love with our lager 111 00:04:44,370 --> 00:04:46,570 the way the generations before have. 112 00:04:46,570 --> 00:04:47,630 - [Narrator] It looks like the challenges of the 113 00:04:47,630 --> 00:04:50,270 booze market and reaching an audience in the digital age 114 00:04:50,270 --> 00:04:52,630 have finally jump started the beer giant to kick 115 00:04:52,630 --> 00:04:55,240 its innovative ambition into high gear. 116 00:04:55,240 --> 00:04:57,610 It's gonna need every ounce it can muster 117 00:04:57,610 --> 00:05:01,100 to avoid becoming just another throwback logo on a t-shirt. 118 00:05:01,100 --> 00:05:04,466 And keep the Budweiser brand strong for another 150 years. 119 00:05:04,466 --> 00:05:07,049 (upbeat music)