Dear Client:
Sélim Chidiac has resigned as Red Bull North America chief, effective February 3. He was with RBNA for three years and with Red Bull globally for 11 years. He is leaving to become the CEO of a gold jewelry company in the Middle East. His successor will be announced “at a later stage,” says the company. “Red Bull North America is well-positioned to continue the momentum that has led to the highest share ever in four years,” said the company.
Ad Group Chides MillerCoors for Ad Claims
At A-B’s prompting, the National Advertising Division of the Council of Better Business Bureaus has recommended that MillerCoors modify certain claims for its “Taste Protector” caps and lids. NAD also determined that other claims did not require substantiation. Taste protection has become a leading point of differentiation for Miller Lite recently.
“NAD determined that consumers could interpret these advertisements to mean that Miller Lite’s bottle caps and can lids have been improved by the addition of a ‘special’ barrier that has the ability to better preserve the taste of the beer. The advertiser conceded that there have been no changes to the bottle cap or can lid that would constitute a technological advance,” writes the NAD.
“NAD noted that offering more than 100 days of protection was not a new product benefit and that the technology used in the production of the bottle cap and lid was comparable to the technology used by its competitors.
“Although the advertiser argued that the advertisements called out a benefit that its product packaging has long offered, NAD noted that consumers could not know from the advertising that the technology was not new, different, innovative or ‘special.’
“NAD further noted that while advertisers can change marketing strategies to promote the different features of their product, they must do so truthfully to avoid any potential overstatement or consumer confusion. NAD recommended that the advertiser modify its advertising by discontinuing references to the ‘special seal’ and ‘special barrier’ and avoiding prominent references to the ‘Great Taste Deserves Protection’ (and the ‘great taste deserves this kind of protection’ in the radio advertisement) that convey the unsupported message of a product innovation or enhancement.”
However, the NAD concedes that “‘Taste Protector Cap’ and ‘Locks in Great Pilsner Taste’ as they appeared on the Miller Lite bottle and can did not convey a new or special product benefit but simply call out the benefit that the cap and lid actually provide. Finally, NAD determined that ‘Locks in Great Pilsner Taste’ in the context of the ‘Taste Activator Glass’ advertising was puffery, not an objectively provable claim that required substantiation.”
MillerCoors, in its advertiser’s statement, said that while the company disagrees with NAD’s findings regarding the references to “special seal” and “special barrier” in the print advertising and the phrase “Great Taste Deserves Protection” in the radio commercial, “the company will take NAD’s recommendations into account in future advertising. We thank NAD for its careful consideration of the issues raised in this matter.”
In a statement to BBD, MillerCoors added: “We disagreed with NAD’s findings with regards to the use of the term “special” that appeared in some advertising. Though in the spirit of cooperation, we discontinued the advertisements in question and stated we would take other recommendations into account in future advertising.”
AB InBev Contues Having Belgian Woes
AB InBev has failed to stop nearly two weeks of blockades at its Belgian breweries with the collapse of mediation talks on Tuesday with striking workers, creating shortages of beer throughout its home country. The Belgian workers have blocked the entrances to the company’s plants in Leuven and Liege for 13 days and a week at Hoegaarden in protest at AB InBev’s plan to cut a net 263 jobs out of its 2,700 Belgian workforce, says Reuters. Company management and the unions had talks last Thursday which failed to bring a reconciliation. A second attempt on Tuesday also failed.
“We don’t want constant restructuring, but some degree of certainty,” a union official said. “We will continue with the blockades and will discuss whether to intensify our action.” AB InBev said in a statement it planned to hold a third round of mediation talks on Wednesday.
BEER BRIEFS:
MILLERCOORS DISTRIBUTOR David Ingram of DBI Beverage has donated $100,000 to the Red Cross International Relief Fund to help the earthquake victims of Haiti. This gift is being made from the David Ingram Advised Fund of The Community Foundation of Middle Tennessee.
GAMBRINUS chief Carlos Alvarez has also contributed $100,000 to the Red Cross.
CORRECTION. When we said yesterday that A-B’s Ambassadors of Excellence program was mandatory, of course we meant it was not mandatory, but voluntary.
Until tomorrow, Harry
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-George Carlin
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