October 13, 2009
Previously published on October 8, 2009
Anheuser-Busch InBev is shelving its “Fan Cans” promotions in college communities, in response to complaints that the campaign, which sells cans of Bud Light in school colors, promotes underage drinking and infringes on trademarks.
Both the Federal Trade Commission and the brewer have confirmed that they have discussed the issue. Regulators are concerned that cans will be marketed to minors. Industry regulations require at least 70 percent of the intended audience for an alcoholic beverage to be of legal drinking age, which is not the case on college campuses, an FTC spokeswoman said. The FTC declined to comment on whether it was conducting an investigation of the promotion.
In a statement, an Anheuser-Busch spokeswoman said the company informed the FTC that the cans would be sold through retailers where purchasers must be 21 or older. Despite the precautions, “certain cans are not being made available in communities where organizations asked us not to offer them,” the company stated.
Anheuser-Busch launched the campaign last month, which coincides with the start of football season. The program puts school colors on Bud Light cans. Anheuser-Busch, which was bought by Belgium-based InBev last year, said the cans have no college logos, names, or other identifiers – just 27 color combinations. The program is nationwide, where the brewer’s wholesalers choose to participate. The company estimates half of its wholesalers are participating.
According to the company, roughly 25 colleges represented by Collegiate Licensing Co. have sent the brewer formal letters asking it to stop the program at their campuses. Although it declined to specify the colleges, Boston College, the University of Wisconsin, Texas A&M University, the University of Colorado at Boulder, and a dozen schools represented by Licensing Resource Group, including Mississippi State, have confirmed that they sent letters to the brewer or local distributors asking that the campaign be pulled in their areas, expressing concerns over trademark infringement and underage drinking.
Why it matters: Anheuser-Busch probably was aware it was taking a chance in using college color combinations to sell Bud Light, since by their very nature, college populations are largely under 21 and color combinations can be trademarked. But college football games also attract their fair share of alumni and other fans who are of legal drinking age, and Anheuser-Busch can make a case that its promotion is aimed at these fans, since the cans are being sold only at retailers where purchasers are 21 or older. Nevertheless, the company seems to be walking a fine line, as evidenced by its discussions with the FTC and the number of colleges that have requested that the campaign be stopped in their areas – requests with which Anheuser-Busch is apparently complying.
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