Free Budweiser For 500,000 People

Anheuser-Busch InBev plans to give out 500,000 free samples of Budweiser beer over the next few weeks.  The offer will target upscale bars and restaurants. According to Reuters, “In addition to the free samples, which Anheuser hopes will attract new drinkers, the company plans to reallocate most of its media spending to the Budweiser brand, which has been declining domestically for over 20 years.”

According to the new Interbrand study of the worlds most valuable brands, Budweiser is worth $12.3 billion. Part of the reason is traditional marketing, part is due to the brand’s success over decades, and part is due to its success with social media.

The “sample” school of marketing has created a multitude of programs over the years. Food stores often give away free samples. Large consumer products companies including Procter & Gamble (NYSE: PG) offer free samples of detergent through the mail. There are dozens of “free sample” sites listed in a Google search of the term. Wal-Mart (NYSE: WMT) has a website that offers product samples without cost ranging from music to mouthwash to over-the-counter medicines.

Anheuser-Busch is taking very little risk with its program. Although shipments of the beer are down, it still holds more than 50% of the US market. Regular drinkers of Bud may get a day’s free beer, but they will have to pay to get more.

Attracting upscale beer consumers is a challenge for Anheuser Busch. Heineken and Corona have corned much of the high-end of the market. Free samples are not likely to change that.

Douglas A. McIntyre