Stella Artois enlists David Beckham to revitalize its brand

Stella Artois, the nearly century-old brew, is facing challenges in beer sales. To help the lager regain its popularity, one of the world's most recognizable personalities, David Beckham, has been brought on board.

On Tuesday, the Anheuser-Busch InBev-owned brand announced that the former soccer superstar will be the new face of Stella Artois. Beckham has been named the "official ambassador" for the beer, with his first task being to star in a TV commercial. The financial details of the deal have not been disclosed.

A-B may be looking to Beckham’s appeal to help boost Stella Artois, which has seen a decrease in market share for the past five years in the US. Last year, sales of the lager in the US dropped by around 3%, according to Bump Williams Consulting.

Analyst Bryan Roth from Feel Goods Company and editor of the alcohol beverage newsletter, Sightlines, mentioned to CNN that it is logical for A-B to enlist an international superstar to breathe new life into a beer that presents itself as a European lifestyle brand, despite being brewed in the US.

David Beckham is the new face of Stella Artois.

David Beckham is the new face of Stella Artois.

Stella Artois

Why Beckham?

Beckham was chosen by A-B InBev because he embodies the premium values that Stella Artois aims to reflect, as stated by Richard Oppy, vice president of global brands.

Oppy mentioned that Beckham genuinely loves Stella Artois and finds the beer appealing for his growing business ventures. This includes partnerships with luxury brands like Tudor Watches, Maserati, and Nespresso. Together with his wife, Victoria Beckham, they are worth over $500 million.

David, who has experienced living in various places and succeeding in different industries, is now embarking on a new chapter focused on his family, travel, cooking, and cherishing meaningful moments, according to Oppy in an interview with CNN. This was seen as the perfect opportunity to come together and bring that positive energy to life on a global scale.

Furthermore, A-B has big plans for Stella Artois, including the recent signing of Beckham. They aim to boost sales by organizing contests for fans to win dinner with "captivating" celebrities (such as last year's guests Matt Damon and Zoe Saldana) and by sponsoring prestigious sporting events like Wimbledon and Roland-Garros.

Beckham has recently joined Lionel Messi as an A-B ambassador. He plays for the Major League Soccer team, Inter Miami CF, which Beckham co-owns. Additionally, Beckham also represents Michelob Ultra and recently appeared in a Super Bowl TV commercial for the beer.

A-B has had mixed fortunes.

A-B recently announced record revenues for 2023, boosted by price hikes and strong global sales. However, the North America unit saw a significant drop in revenue of over $1.4 billion, mainly due to a sharp decline in Bud Light sales.

Beckham's announcement comes at a time when retailers are preparing to rearrange their shelves for the summer season, when beer consumption typically increases. While Bud Light is losing shelf space, A-B mentioned in their earnings call that this presents an opportunity for their other brands like Michelob Ultra and Stella Artois to step in.

Roth from Sightline mentioned that having Beckham as a spokesperson for Stella Artois brings the kind of high-level recognition that A-B has traditionally relied on to attract attention. He pointed out that while it's uncertain if this would boost sales in the US, the addition of one of the most famous men in the world could further drive the growth of these brands, especially if they are already performing well in foreign markets.

Roth also noted that A-B's collaboration with Messi paved the way for Stella Artois to target a more globally recognized audience, as seen in the company's financial results. For example, revenue from popular American beers like Michelob Ultra increased by 7.5% outside of the US, indicating a faster growth rate internationally compared to domestically.

Editor's P/S:

The partnership between Stella Artois and David Beckham is a strategic move by Anheuser-Busch InBev to revitalize the lager's declining sales. Beckham's global appeal and association with luxury brands align with Stella Artois's premium positioning. While the financial details of the deal remain undisclosed, it is evident that A-B is heavily investing in this collaboration.

Beckham's involvement is not limited to television commercials; he will also play a role in the brand's promotional activities, including contests and sponsorships. A-B's aim is to leverage Beckham's star power to attract new consumers and increase sales. The company's focus on Stella Artois is part of a broader strategy to boost its portfolio amidst mixed fortunes in the North American market. With Beckham on board, Stella Artois has the potential to regain its popularity and establish itself as a global lifestyle brand.Busch InBev's commitment to leveraging celebrity endorsements to drive growth and maintain Stella Artois' position as a premium European lifestyle brand.