The $46 billion unsolicited bid by Belgian's InBev for Anheuser-Busch has stirred up grave concerns over lost jobs and the loss of a national icon for corporate America. But from a branding perspective, many are wondering how the "America's King of Beers" would fair under foreign ownership.
Long wrapped around patriotism, Budweiser uses red, white and blue as its colors. It's often employed soldiers, Clydesdale horses, and stock cars in its advertising. One past slogan announced: "American owned. Brewed here. Born here." And although competitor Miller was also sold to a foreign company, Budweiser's positioning is seen by many as too Americana.
One particularly notable ad was the Super Bowl spot that ran after Sept. 11, 2001, that showed its famous Clydesdale horses bowing in tribute to the victims of the attack.
"I was sitting around a room when that advertisement ran with a bunch of rednecks ... guys who love football ... and they were sitting there with tears running down their faces because their beer understood how they felt," Ted Parrack, chief strategic officer of Colangel marketing agency, told Reuters. "That's gone if that becomes an international company."
But other beer industry observers believe Budweiser's loyal fans won't create a huge backlash.
"There's no real reason for InBev to take away from the tradition Anheuser-Busch has built," said Austin Wilson, publisher of Draft magazine. "The Anheuser-Busch brand is just so strong in this country. I'd be surprised if it was even possible to detract from that brand."
Politicians and union organizers are clearly concerned about InBev's reputation for cost cutting. But InBev has already made several concessions to create a friendlier deal. These include a proposal to keep St. Louis as the new company's headquarters, maintaining Anheuser-Busch's existing breweries, retaining the Anheuser-Busch name in some way and making Budweiser its flagship brand. InBev also said that it plans "to expand Budweiser even further, through our extensive distribution network."
If the deal happens, InBev, which owns Stella Artois, Beck's and Bass, would become the world's largest brewer, and benefit from significant economies of scale.
Without overwhelming political or consumer protests, many expect the deal will go through. Anheuser-Busch's stock has been stagnant for years. While politically entrenched, the Busch family holds only a small stake in the company.
But former Anheuser-Busch marketing executive Bill Finnie told NPR that it will not be easy to make the combination work.
"Done wrong, it's going to be a disaster for InBev, for Anheuser-Busch and its people," says Mr. Finnie. "Done right, it could be a huge win for all three."
Discussion Questions: What do think of the InBev/Anheuser-Busch deal? Is foreign ownership a bad idea for Anheuser-Busch and the Budweiser brand?