Anheuser-Busch InBev to Consider Ad Buying Review for 2017

Anheuser-Busch InBev NV is considering a review of its massive global ad buying business following its recent $100 billion-plus takeover of beer giant SABMiller.

"As a leading CPG company, it is part of our best practices to regularly review our approach to our media operating model," said a spokeswoman in a statement. "Following the combination with SABMiller, we are currently assessing our media planning and buying model and whether a global media agency review would be required."

The world's largest brewer is seeking to hire a consulting firm to help it review its existing ad buying practices and potentially conduct a review, according to people familiar with the matter.

AB InBev and SABMiller collectively spent $1.08 billion on U.S. measured media in 2015, according to estimates from ad-tracking firm Kantar Media.

AB InBev, which houses brands like Budweiser, Corona and Stella Artois, currently works with a long list of ad buying firms, including companies owned by ad giants WPP PLC, Publicis Groupe SA, Dentsu Inc. and Interpublic Group of Cos.

A review could begin in the second quarter of 2017, and cover a number of markets, including North America, Europe, Asia Pacific, Latin America and Africa, among others, according to the people familiar with the matter.

While the brewer's motives aren't immediately clear, a megadeal typically prompts a move to consolidate agency relationships in an effort to cut costs. combining media budgets could also provide the brewer, and its agencies, with even more sway over media companies, leading to additional cost savings.

AB InBev has already said it is seeking $1.4 billion in annual cost savings from the SABMiller deal. Marketing is typically a place that companies seek to find cost savings following mergers.

AB InBev has a reputation for slashing costs and has in the past pressured ad firms over the fees its pays for services.

Still, the consolidated beer business would be a prize for any agency. That is, if they make it through the potential review process.

AB InBev in September got the final stamp of shareholder approval for its SABMiller deal, and in October the company dropped the SABMiller name and began trading as a combined company.

Write to Alexandra Bruell at [e-mail]

(END) Dow Jones Newswires

December 09, 2016 17:45 ET (22:45 GMT)

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