Budweiser Seeks Pot of Gold Selling Beer in the Emerald Isle

In the land where Guinness is king, Budweiser has emerged as a possible crown prince.

Traditionally, the creamy black Guinness stout ranks alongside horse racing as one of Ireland’s national treasures. But now Dublin’s affluent young drinkers are discovering the ice-cold attractions of the world’s best-selling lager.

Guinness, maker of the world’s best-selling stout, is delighted because it signed an agreement last year with St. Louis-based brewing giant Anheuser-Busch to brew Budweiser in Ireland.

In Ireland’s 900 million punt ($1.4 billion) retail beer trade, lager is the big growth market, with a bewildering array of new brands coming onto the market in a bid to change age-old Irish drinking habits.

“The lager market is very competitive, with numerous brands on the market, all of a high quality. The punter (beer-drinking customer) has become very discerning and discriminating,” Guinness senior brand manager Brian Twomey told Reuters.

“Stout accounts for 50% of the Irish market, 30% is lager and 20% is ale. In 1980, the lager and ale percentages were the other way round,” he said.

Guinness, which also makes the Irish market-leading lager Harp, has been quick to spot the upswing, brewing Budweiser under license as well as the German lager Furstenberg. It will start brewing Danish Carlsberg this summer.

Twomey rejects suggestions that that is overkill. “There are distinct niches in the market. There will be overlap but they are all distinctive,” he said.

Speaking in the language beloved by advertising executives, Twomey said: “The typical Bud drinker is 18 to 24. . . . Let us not label it a yuppie drink, but say it is more for the middle classes than the working classes.”

Disaster for Sponsor

But how does Budweiser win brand recognition in a crowded, competitive market? Sport sponsorship has worked wonders, with Budweiser taking over the Irish Derby horse race until 1991 and promoting international power boat racing on Dublin’s River Liffey.

“Both are high-profile, big-buck sponsorships which give you a very high awareness factor. The Derby has been a great help for us. It has enormous media coverage,” Twomey said.

But last year’s Derby was a disaster, with rain pouring down on the Curragh track, a bomb scare forcing the evacuation of the grandstand.