Budweiser Diversifies & Plans Deeper Cultural Partnerships In China

Popular American beer brand Budweiser has set its eyes on backing lifestyle and cultural brand partnerships in China.

Recently, it has sealed an endorsement deal with actor-singer Xiao Zhan – from hit historical TV drama Untamed – and collaborated with Italian fashion label Moschino on merchandise such as clothing, handbags and beer bottles. However, Budweiser’s lifestyle project BUDX has been gaining much traction by partnering UCCA Lab, part of the UCCA Center for Contemporary Art in Beijing, to plan a series of public projects focused on independent art, music, architecture, fashion and other cultural interests to attract the nation’s large Gen Z audience. 

Following the deal, Che Yi, Vice President of Budweiser Asia Pacific Market, said, “The agreement between BUDX and UCCA Lab to explore the possibilities of time and space for the younger and subversive art and the ambition and romance to distribute more pioneering attitudes to urban youth It is a hit, open to all artists and spectators, and welcomes everyone to break through all the traditional imaginations and join in this subversion, interpretation and reshaping.”

According to ASN data, Budweiser is the 2^nd largest player (20.7%, US$17.8m) for its category across the sponsorship market in China, just behind Yanjing Beer’s (23.5%). However, its quarterly spends since Q417 have ranged between US$820k to US$1.3m, below its average of slightly over US$1.5m. 

This has been largely due to the brand’s withdrawal from a lucrative US$6m title sponsorship of the Storm electronic dance music festival, last sponsored in 2017.  Budweiser’s biggest sponsorships in China tend to be focused on sport and venue sponsorship namely an almost US$3.3m deal with NFL China and a US$820k deal with the Mercedes Benz Arena in Shanghai. But, its latest moves show it wants to cement its position in Asia’s cultural landscape, similar to rivals Heineken and Tiger.