Quilmes Enters The Marketing Hall of Fame

Quilmes Argentina

Titan: In a increasingly global sector, Quilmes remains close to Argentine hearts and taste buds.

Few brands are as synonymous with Argentina as Quilmes. Like Coca-Cola in the U.S. or Brahma in Brazil, the 120-year-old brewery has withstood the test of time and constantly managed to reinvent itself and project a youthful image through aggressive marketing and creative advertising. In recognition of the brand’s creativity and longevity, Quilmes has been named to Argentina’s Marketing Hall of Fame.

Marketing VP Ricardo Fernandez tells AdLatina, “Quilmes is a brand that transcends the beverage category. The top priority for us is to stay young, active and vital.” These qualities are often on display in Quilmes ads which run the gamut from whimsical (What if founder Otto Bemberg had opened his brewery in a city other than Quilmes?) to inspirational (One of the only positive memories of the 2010 World Cup).

Perhaps more impressive has been the brand’s ability to retain such a strong association with Argentina in an era when breweries are becoming increasingly global and individual beers are associated less with their country of origin and more with their hyphenated-parent-company-of-origin (Think Anheuser-Busch-InBev, SABMiller, MolsonCoors). Even Quilmes is controlled by a holding company based in Luxembourg, and that same company, Quinsa, accounts for 100% of PepsiCo beverage sales in Argentina and Uruguay.

“Quilmes is very close to the hearts of Argentines,” concludes Fernández, “Quilmes es la argentinidad, la pasion, la amistad, el sabor del encuentro.” (Full Story in Spanish)

isenbeck

As in other corners of South America, SABMiller is finally jumping into Argentina's beer pool.

Yesterday the world’s number two brewer, SABMiller, announced the purchase of Argentina’s number three brewer, CASA Isenbeck, in a deal valued at US$43 billion. In addition to the Isenbeck and Warsteiner brands, the purchase gives SABMiller its own plant in Argentina with 300 employees and a distribution center in Chacarita.

Drinks Business Review says CASA Isenbeck will continue to produce and distribute the Warsteiner brand under a long-term licence agreement. “CASA Isenbeck gives us exposure to the fast-growing and attractive Argentinian beer market and complements our existing Latin American operations,” said Larry Miller, president of SAB Miller Latin America.

Those “existing operations” include a sizable portfolio of 30 well-known LatAm brands including Aguila and Pilsen (Colombia), Cusquena (Peru), SalvaVida (Honduras) and Pilsener (Ecuador).

According to Clari­n, Isenbeck’s share of the Argentina beer market is 7%, while InBev-owned Quilmes still dominates with 75%. In terms of strategy, BA business insider d:biz says once established, SABMiller will possibly launch other global brands like Miller, Bass Ale and Pilsener Urquell here in Argentina. The company has taken a similar approach in other South American countries like Colombia where Peroni is now one of the best-selling brands in upscale restaurants and clubs.

As InvestBA reported on Monday, if SABMiller is looking to introduce more premium brands into Argentina, the timing could not be better. And watch for BA beer advertising to get a little steamier: Isenbeck has always featured creative campaigns, while Miller was behind the original Super Bowl catfight and their Colombia ads seem to feature more bikinis than bottles.

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Argentina Futbol Miracle

With 7-1 odds of winning it all, Argentina's sponsors are hoping for a miracle in South Africa.

Being an Official Sponsor of the Argentine national team has its highs and lows. Just ask The Coca-Cola Company. The Atlanta-based soft drink maker’s corporate logos were visible everywhere at the Estadio Monumental that October night when Martin Palermo scored the miracle goal against Peru in the rain.

A Shawshank moment and dream publicity to be sure. Thirty minutes later in the post-game press conference, head coach Diego Maradona sat at the dais covered with strategically-placed Coke bottles and cordially invited his media critics to give him oral pleasure.

It’s that combination of on and off-the-field unpredictability that raises the stakes for the corporate sponsors going to battle alongside Argentina and the 31 other teams in South Africa. Wharton gives an excellent overview today titled, Why and How Brands Hope to Score at the FIFA World Cup. The hierarchy of World Cup sponsors is explained in detail as are the number of clothing companies vying for team sponsorships “to raise consumption and sales at an exponential rate.”

As always, Argentina suits up with Adidas, while Nike is betting the farm on Brazil and eight other teams. Meanwhile U.S. advertisers will probably get more coverage than the U.S. team: Continental Airlines, McDonalds and Budweiser will collectively invest over US$60 million between now an 2014. In the end, Wharton says, those brands that are most successful are the ones that generate “an emotional connection between the sponsored team, the public and the brand.” For our money, it’s hard to top Argentina beer sponsor Quilmes. Talk about emotional bang for your peso. (YouTube Video)

Former player & current coach Diego Maradona in a 1978 ad for long-time sponsor Coca-Cola.

Former player & current coach Diego Maradona in a 1978 ad for long-time Argentina sponsor, Coca-Cola.

While some say beef is Argentina’s finest export, most European soccer club owners would politely disagree. The rosters of Europe’s legendary club teams are stacked with young players from Argentina like Lionel Messi, Sergio Agüero and Gonzalo Higuain.

And while these talented twenty-somethings are gearing up for a match next week in Germany and this summer’s World Cup in South Africa, a recently announced agreement should raise the team’s profile and following in the United States. The Argentina Football Association (AFA) just inked a deal with a Chicago-based marketing group committing the National Team to four “friendly” matches in the U.S. between now and 2014.

AFA agent Guillermo Toffoni explained the branding significance of the deal to Reuters: “We want to open the market for the national team which is a very strong brand. It’s a brand that is as strong as or stronger than that of Real Madrid or Barcelona.” (Article)

The global appeal of Argentina’s National Team is evident in the current roster of multinational Official Sponsors including Coca-Cola, VW, Adidas, Quilmes, YPF, Italcred, Standard Bank and Claro. While Brazil, Spain and England are more favored to win this year’s World Cup, odds are good the brand called Argentina will broaden it’s U.S. appeal beginning with the first friendly this September.

Latin American beer companies

When temperatures began to rise in BA last November, one local brewer, Isenbeck, covered the City with billboards promising the ultimate fantasy for beer lovers seeking respite from the calor bonaerense: A chance to swim in beer.

Ultimately, according to Advertising Age, the marketing event was canned by government officials who feared “the Pileta de Cerveza ad campaign and the plunge into a pool brimming with brew would encourage irresponsible drinking.”

The government may have thrown cold water on the Beer Pool, but the competition is just now heating up among brewers in BA and the region in general. First, Heineken outbids SABMiller for FEMSA’s beer business to gain much-needed Latin American exposure, then Chile’s Kunstmann (part owned by CCU, the second-largest player in Argentina) announces a regional expansion, and finally speculation surfaces that Anheuser-Busch InBev may increase its ownership stake of Grupo Modelo.

After so many M&A’s, the Latin Business Chronicle says “Scarce Targets” remain in the region: “To acquire volumes in Latin America potential acquirers would now have to look at smaller players that only have operations in one country.” Several of these cervejas artesanais are located in neighboring Brazil where A-B InBev rules, but Schincariol is gaining market share both at home and in Argentina.

Now with the World Cup only six months away, the Latin beer battle moves from the boardroom to the TV with every major brewer vying for top-of-mind association with each country’s national team. (A-B InBev’s Quilmes set the bar extremely high with this 2006 epic.) Winning that battle to reach 26.29 billion viewers in 214 countries would be something unforgettable…kind of like swimming in beer.

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