Making Some Cuts at AB

Just saw this in AdAge:

"Agency fees are the latest casualty in Anheuser-Busch InBev's quest to trim $1.5 billion in costs out of the world's largest brewer.

A-B has swapped its long-held retainer-based model of compensating its busiest agencies for a new approach based on an agreed-upon scope of work at the shops. That shift, which has become an increasingly common one for marketers looking to cut agency outlays, puts the agencies on the hook if projects require more hours or greater cost than expected. Other changes include stingier reimbursement rates for production costs and smaller, flat per-concept fees."

This change should be interesting to watch unfold as a variety of smaller shops will be axed from the AB stable.

Also, check out the new label - it's kind of ridiculous InBev is forcing "American" down our throats. The fact that they have to emphasize that it's an "American Ale" actually puts more emphasis on the fact that it's no longer an American company, but a mere piece of a huge Belgian conglomerate. The next thing they'll put on there is that Belgium is the St. Louis of Europe.

UPDATE: I stand corrected - "American Ale" is a new line, yet the push for "American Lager" on their site is a little over the top (see below). "American/America" is on there 6 times.