• Bloomberg, Friday, March 26, 2010 10:39 AM

Many an observer felt that Anheuser Busch's marketing faced a sharp and pointed knife when InBev NV took it over -- and with good reason, Andrew Cleary reports. Its reputation for cost cutting is legendary.

"The question was whether they could simultaneously build brands," says Matthew Jordan, head of research at Matrix Corporate Capital LLP in London. Well, rather than cut back on advertising, CEO Carlos Brito bumped spending by 20% to $1.4 billion in the final quarter of last year alone. Jordan says the company is "at the vanguard of the industry's race to rebuild advertising and promotions."

CMO Chris Burggraeve, who says AB InBev will invest in its main brands "come hell or high water," certainly concurs. "Brand health today is price-premium potential tomorrow," says the executive, whose pedigree includes Coca-Cola and Procter & Gamble.

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