E-Malt.com News article: United States: Diageo to launch one of biggest marketing pushes in the US to bolster Guinness sales

Diageo plc, the brewer of Guinness, is making one of its biggest marketing pushes in the U.S. in years to bolster sales, including a sports-themed advertising campaign and the introduction of two new versions of the Irish stout, The Wall Street Journal reported on October, 11.

Guinness and other import brands face a choppy economy and rising competition from domestic, small-batch "craft" brewers.

Starting this week, Guinness will run ads on ESPN and other channels starring such sports figures as retired football star Jerome Bettis. In his ads, the bruising, former Pittsburgh Steelers running back will highlight the message that the robust beer is "only for the bold." One of his former coaches, the square-jawed Bill Cowher, will appear in similar ads.

The commercials, developed by Omnicom Group Inc.'s BBDO, are part of the first major sports-themed marketing campaign in the U.S. for the Guinness brand, which long has been associated with soccer and rugby in ads in other markets. The campaign expands on a tag line, "Fortune Favors the Bold," that the brewer introduced late last year.

"Connecting Guinness with sports is the perfect way to bring boldness to life: It takes bold moves, bold plays," said Patrick Hughes, U.S. brand director for Guinness.

The campaign also includes online and radio ads, as well as in-store displays. The company declined to say how much it will spend on the campaign.

Diageo-Guinness USA, the sixth-largest U.S. beer supplier by sales, also plans to include basketball celebrities in ads next year linked to college basketball's March Madness championship tournament run, which will start on St. Patrick's Day, a crucial sales period for the brewer.

In the past few weeks, the company has begun a national rollout of Guinness Foreign Extra Stout, which has more hops and alcohol than the draught label popular in the U.S. Foreign Extra Stout, a big seller for Diageo elsewhere, hasn't been sold in the U.S. since before Prohibition. Diageo is spending about $1 million in advertising to support the rollout.

Diageo also last month began test-marketing a new brew, Guinness Black Lager, the first lager version of Guinness in the U.S. The beer, a lighter twist on Guinness that is designed to expand the brand's audience, currently is for sale only in Chicago and San Diego.

Mr. Hughes said the new beers are aimed partly at American beer drinkers who increasingly are experimenting with new beer styles and trying craft beers made by such domestic companies as Colorado's New Belgium Brewing Co. and Alaskan Brewing Co.

Diageo's multipronged effort is aimed at lifting sales for a brand that enjoys a strong following in the U.S. but whose growth has slowed during the economic downturn as consumers have cut back on beer drinking or switched to less expensive competitors.

Shipments of Guinness to U.S. retailers fell about 6.6% last year, according to market-research firm Beverage Information Group. But Diageo said in August that Guinness's North America sales volume rose 5% for the fiscal year ended June 30. The company doesn't break out U.S. results but said Guinness volume was up and that the brew gained a tenth of a percent of market share among imported beers.

Guinness is the sixth-largest import in the U.S. by sales volume, according to Beverage Information Group. The category is led by Grupo Modelo SAB's Corona Extra and Heineken NV's flagship Heineken brand, both of which have struggled in the weak economy.

Guinness's introduction of new brews makes sense because some drinkers have reached for craft beers instead of imports, said Eric Shepard, executive editor of industry newsletter Beer Marketer's Insights. "It's tough out there," he said. "The consumer has an enormous amount of choice."

Bump Williams, an industry consultant, said Diageo may have difficulty wooing drinkers of craft beers, some of whom are skeptical of new products from household beers with large marketing budgets. "The problem that they're going to run into is their name has such a strong brand equity," he said.

By rolling out new products, Guinness hopes to attract attention in the bar scene, a segment that has been especially challenging for brewers in the weak economy. About 48% of Guinness's U.S. sales comes from bars, restaurants and other so-called on-premise locations, which is high relative to its rivals.

"We are pleased with our performance," said Mr. Hughes, the U.S. brand director. With the new brews, "we feel we are poised quite well for the next year."


13 October, 2010