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MILWAUKEE -- Anheuser-Busch Cos. Inc. is planning to increase its marketing to Hispanics, about a year after Miller Brewing also began a major push to capture that market segment, reported The Business Journal of Milwaukee .
The Wall Street Journal reported that Anheuser-Busch, the brewer of Budweiser and Bud Lite, is boosting spending in its advertising to Hispanics by 66 percent. The St. Louis-based company plans to spend $60 million on Hispanic media in 2006, about 11 percent of its estimated $550 million total advertising budget in 2004.
Anheuser-Busch is reportedly looking to target new markets as beer sales are slowing. The company already has about a 50 percent market share in the United States and is the top brewer in the Hispanic market through its 50 percent ownership in Mexico City-based Grupo Modelo, which exports five brands, including Corona products, and is the exclusive importer and distributor of Anheuser-Busch's products in Mexico, according to The Business Journal report.
In an effort to grab a larger share of the Hispanic market, Milwaukee-based Miller began a major marketing effort in late 2004 to reach that audience. Miller's efforts include an October 2004 advertising and marketing arrangement with Spanish-language broadcaster Univision Communications Inc., Los Angeles, worth more than $100 million; and sponsorship of a Nov. 27, 2004, boxing match between super lightweights Marco Antonio Barrera and Erik Morales, both natives of Mexico.
A main target of Miller's marketing effort are Hispanics who have recently immigrated to the United States, who tend to be heavily influenced by top consumer brands, including those produced by Anheuser-Busch, The Business Journal reported.