State Orders Halt to ‘Bud Gear’ Beer Ads
State authorities obtained a court order Friday forcing Anheuser-Busch to halt its “Buy the Beer, Get the Gear” television advertisements, in which consumers are offered merchandise for drinking Budweiser.
Los Angeles Superior Court issued the temporary restraining order at the request of the state Department of Alcoholic Beverage Control. A hearing is scheduled July 15 in Los Angeles, department spokesman Carl DeWing said.
The brewer’s advertising program violates the state’s liquor laws by offering any “premium, gift or free goods” in connection with the sale of alcohol, according to the state.
ABC Director Jay Stroh described the ads as “a bold marketing effort we feel steps over the line by blatantly encouraging increased alcohol consumption to obtain premium points that are redeemable for nonalcoholic merchandise.”
“We believe the ‘Bud Gear’ is an irresponsible and unlawful marketing scheme that encourages consumers, particularly young people, to drink as much beer as possible,” Stroh said.
The “Bud Gear” ad campaign also did not alert consumers that claiming the merchandise required, in some cases, paying a percentage of the actual cost of the product, Stroh said.
State authorities said they learned of the ads in late May and notified Anheuser-Busch that the program is unlawful. The state said it asked the brewer to discontinue the advertising, but the company declined.
Anheuser-Busch Vice President Dane Starling apologized to customers and asked them to hold on to their “points” until the matter is resolved.
“The ‘Bud Gear’ program has been temporarily suspended by court order. A hearing on the matter will be held in mid-July and a decision on its future is expected at that time,” Starling said.
“We appreciate the loyalty of our customers,” he said. “ ‘Bud Gear’ is designed to reward that loyalty.”
The promotion offers prizes--such as dartboards, pool tables and “keg-a-rator” refrigerators--in exchange for points collected on bottle tops and cartons that carry cans, the order says.
Anheuser-Busch lawyer Emmett Stanton argued at the hearing Friday that the state Department of Alcoholic Beverage Control had already approved the promotion.
The company said that if the promotion were blocked, $42 million worth of bottled beer would have to be destroyed “because there is no way to replace the logoed bottle caps.” The company also says it will lose $2.8 million in ‘Beer Gear’ merchandise, $2.1 million for catalog printing and $3.5 million for replacement packaging and other costs.
Anheuser-Busch says the state will lose $26 million in taxes from the promotion, while the federal government will lose $19.8 million.
