What’s Driving Growth for Anheuser-Busch’s Premium Beers?

American brewing company Anheuser-Busch has three ‘premium brands’: Stella Artois, Kona Big Wave and Estrella Jalisco, and each brand - whether a long-tenured classic of the category, like Stella, or an exciting relative newcomer - is currently having a big 2024.

“Each of these brands offers a unique proposition and allows us to reach consumers across a wide variety of taste preferences and passion points,” explains Chris Jones, group vice president of Anheuser-Busch’s premium portfolio, who shares with LBB how brand partnerships with popular web series ‘Hot Ones’, Hispanic music festivals, and celebrities like David Beckham have driven growth for the beers.

“There are a few variables that led us to defining a ‘premium’ brand within the portfolio, but it mainly boils down to the quality and craftsmanship that goes into each beer,” he adds. From there, Anheuser-Busch looks at the aspirational lifestyle that each brand evokes and tailors their strategies, starting with a clear positioning and often, the ‘“on-premise channel’” – bars and restaurants – where a brand’s identity and dynamic with consumers are truly formed.

Speaking to LBB’s Ben Conway, Chris discusses how Anheuser-Busch’s premium beers are succeeding and standing out in the market, big ambitions for the portfolio, and how he’s helping to preserve the magic of “one of the stickiest brands” he’s ever seen.

LBB> How does Anheuser-Busch fit into - or perhaps stand out in - the premium category?  How do you collaborate with the rest of Anheuser-Busch’s portfolio to inform your premium approach? 

Chris> We have done lots of work as a business to understand how consumers are  shopping for beer and the role each brand plays in our portfolio. We are extremely clear on the consumer profiles for each of our brands, their consumption occasions, and what we need to do to reach them effectively.

We are thoughtful in everything we do – from all the advertising you see, how we show up in culture, and our commercial plans.  

LBB> While still ‘premium’, a brand like Kona Big Wave has a very different identity and role in the portfolio to Stella Artois, or Estrella Jalisco. Tell us a bit about the strategy for Kona following its brand refresh last year! 

Chris> Kona Big Wave is a gem of a brand that has transcended its roots and is on the path towards becoming a true premium lifestyle beer. The brand is on fire and continues to grow. With this said, it’s important to us that we grow the brand carefully and preserve its magic. So, we are taking the necessary steps to do this, and it starts with prioritising trial above all else.  

When people try Kona Big Wave, they keep coming back at unprecedented rates. This is truly one of the stickiest brands I’ve ever seen, and it’s no wonder that our ability to connect with consumers authentically is driving more and more growth.  

Our plans are all built around delivering trial and awareness and you see that come to life through our on-premise programming, our partnerships with various surf and skate lifestyle brands, and immersive experiential such as our Aloha Houses and activations across prominent music properties.

LBB> You obviously have to approach each brand in a unique way, but are there some overarching philosophies and guidelines that go into the premium portfolio as a whole? What links the way you market Stella Artois, Kona and Estrella Jalisco? 

Chris> One of the things that makes high-end brands unique is how they are built. This means having an extraordinarily clear positioning and value proposition. It also means being intentional with where you are building them. And in our business, this often starts in the on-premise channel, also known as bars and restaurants.

This is where sampling happens, this is where impressions are formed, and this is where the identity of these brands are fortified. If you look at Stella Artois, its DNA is inextricably linked to the on-premise and it’s where the brand occupies a leadership position today. With Kona Big Wave and Estrella Jalisco, we are seeing a similar dynamic unfold, where on-premise is the biggest driver of growth for the brands.  

LBB> Partnerships play a key role with the premium brands - a major one to note is the Stella Artois sponsorship of ‘Hot Ones’ - how did that come about? What makes it such a natural and effective partnership? 

Chris> Our partnership with First We Feast’s ‘Hot Ones’ has been tremendous and  they're a great bunch to work with - we have a lot of fans in our office! It’s gone exceedingly well and been a symbiotic relationship. In addition to serving as the ‘Official Beer of Hot Ones’ this summer, we’ve been at the centre of multiple episodes featuring a wide range of stars. And this week, First We Feast’s ‘Hot Ones’ and Stella Artois will bring the largest ever ‘Hot Ones’ live in-person challenge to Chicago, hosted by [‘Hot Ones’ host] Sean Evans alongside some world class talent.

LBB> Ludacris, as a brand ambassador for Stella Artois, plays a big role in that partnership  - how do you choose ambassadors (like David Beckham as well) who fit the brand’s premium image? And how do you create content around those partnerships which feel authentic to both the partners and the brand? 

Chris> We look to foster long-standing genuine relationships with true lovers of the  brand. That’s why you’ve likely seen some of the same familiar faces these last few years. Ludacris and David Beckham not only connect with our audiences but exhibit the Stella Artois values and have a healthy personal affinity for the brand. It's a true win-win. 

LBB> We also hear that Estrella Jalisco is working with Mexican musicians to connect authentically with Mexican culture - what can you tell us about that? 

Chris> Mexican regional music is skyrocketing in popularity with consumers, and we are excited to be working with some of the biggest stars and events in the genre. This year, we are continuing to lean into the space, and Estrella Jalisco will activate at two of the biggest Hispanic music festivals in the country – Besame Mucho and Rumbazo. There is so much opportunity in this space and we continue to look for ways to authentically participate at local and national levels.

LBB> What can we expect from Anheuser-Busch’s premium portfolio in the rest of 2024?

Chris> We have big ambitions for our premium portfolio and a lot of momentum heading into the back half of the year. Paid media is peaking for us as we speak, and Fall and Winter are full of robust programming. This includes the final stops of Stella Artois’ ‘Let’s Do Dinner’ Summer Series programme and the rollout of our first-ever personalised chalice gifting programme for the brand over the holidays, where we’ll be giving away thousands of chalices across the  country. 

We are continuing to invest in relevant partnerships with Kona Big Wave, including our new ambassador, legendary pro skater Eric Koston. This year will also mark the first-ever Kona Big Wave holiday programme, where we’re giving consumers the Gift of Aloha through coveted travel getaways.  

All in all, we are teed up for a big finish to 2024 and an even bigger start to next year.