Bud Light Pours More Money Into Ritas

New ad campaigns, flavors for fruity malt beverage line.

July 15, 2014

ST. LOUIS – When Anheuser-Busch InBev launched its margarita-inspired Bud Light Lime Lime-A-Rita flavored malt beverage in April 2012, it was supposed to be a summertime limited edition ending by Labor Day. But the line extension survived and has grown to the point where the brewer has made it a major priority with new flavors and an accelerating marketing budget, according to Ad Age.

"We are stepping up our investment in the Ritas," Tyler Simpson, director of marketing for Bud Light extensions, told Ad Age, calling the beverages a "big bet for Anheuser-Busch."

At the same time, Bud Light keeps churning out new flavors of the Ritas, which are designed to be poured over ice, stealing market share from liquor brands. This fall, the brand will add Apple-Ahhh-Rita as a limited edition to line, which includes Lime-A-Rita, Straw-Ber-Rita, Mango-O-Rita and Raz-Ber-Rita. Cran-Brr-Rita, which was first sold last winter, is returning in November. (The flavor's popularity last year led to stock shortages and prompted the brewer to extend its run past the holiday season and into January.)

Bud Light might not stop there: Ad Age says that trademark applications have been filed for more than 10 additional flavors, including Melon-Rita, Peach-A-Rita, Ki-Wi-Rita and Pom-A-Rita, according to the U.S. Patent and Trademark Office. Mr. Simpson declined to comment on the potential new offerings.

If sales are an indication, the brand might need to keep innovating to maintain its market share momentum. The Rita franchise grew dollar sales by 55% to $498 million in the 52 weeks ending June 15, and now controls 28% dollar share of the flavored malt beverage segment, according to IRI, which refers to the category as "progressive adult beverages."

And the newer Ritas are outperforming the older varieties. Sales of the original Lime-A-Rita fell by 28% in that time period, while Straw-Ber-Rita, which debuted in March of last year, grew by 128%, according to IRI. Meanwhile, Mang-O-Rita and Raz-Ber-Rita, which launched in March this year, have already reached $47 million and $39 million in sales respectively, according to IRI, whose figures exclude bar sales.

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