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Super Bowl: Bud Light goes for laughs in new ad

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Seana Smith and Brad Smith

With Super Bowl LVIII nearing on the horizon, brands have their best ads prepped and ready to go, reaching the massive audience Sunday's Big Game provides. Bank of America's Food & Beverage Analyst Peter Galbo joins Yahoo Finance Live to discuss Anheuser-Busch's (BUD) strategy to capitalize on this year's exposure.

Galbo says Bud Light is "getting back to being funny" with its Super Bowl ad featuring stars like Post Malone and Peyton Manning. However, he notes Sunday will see a "drag-out fight" among the major beer companies.

In this setting, Galbo states beer aims to provide entertainment and "escape" for viewers. As younger consumers turn away from beer, Bud Light's humorous ad looks to attract new customers.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

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Editor's note: This article was written by Angel Smith

Video Transcript

- Are you--

- The Bud Light genie? Yeah.

- So we get--

- Wishes? It's my thing. Give me.

- '80s metal hair.

- Yes.

- Filthy rich.

- So filthy.

- I wish Peyton Manning was my best friend.

- Uh-huh.

- How they doing?

- Hey.

- Oh, Post Malone.

- Hey.

- Who wished for A T. rex?

- Guilty.

- Let's go to Super Bowl 58.

- Now we're talking!

SEANA SMITH: A light hearted fun one that we can look forward to on Sunday because beer giants are spending huge once again on the Super Bowl. They're doing everything they can to win back some of their lost customers. And the brand with the most on the line, well, it's arguably Bud Light. It's still struggling to recover from a consumer boycott last year.

Now, taking a look at the broader industry data out from Bank of America showing that the sector remains under pressure. Shipments falling to the lowest level that we've seen in about 25 years. We want to bring in Peter Galbo. He is Bank of America's food and beverage analyst.

Peter, it's great to have you. First, I think we've got to talk reaction to the ad. What you guys think?

PETER GALBO: So for Bud Light, it's about getting back to being funny.

SEANA SMITH: Yeah.

PETER GALBO: Like that's what the brand means to most consumers. And so they've added humor back into the equation. You have Post Malone and Peyton Manning who, I mean, has had a great second career. We all remember the SNL with Peyton Manning was one of the all-time viewed. So I mean, I think it's great ad copy.

It's going up against though, remember, 15 years ago, Coors Light rolled out the cold train. We're bringing the cold train back. So this is a true heavyweight, knock down, drag out fight between the beer giants. It's going to be like Chris Jones going against Trent Williams on Sunday. Like this is the match up, but great ad.

BRAD SMITH: Yeah, look, I was giving the rest of the team my unsolicited ad reviews earlier today. I think it comes down to hope, humor, service, value proposition as well of a product, and then just good delivery here. So the jury is out at least with brand equity partners on what I'm rating that one right now.

But while we have you, Peter, and you think about this overall industry and what the consumer is looking for for these companies to deliver upon, what is it? Is it something just like a good ad spot with a good salesman as well? But the product itself too, where is it-- where are they looking for differentiation?

PETER GALBO: So I think the value piece that you mentioned is important. But remember that what beer or what alcohol, particularly in this setting, is supposed to provide, essentially an escape for people, right? And if you're enjoying the game, that's what people are looking for.

I think, again, for Bud Light to get back to its roots in-- everything in humor, and remember, this goes back a few years even as well. Bud Light took some shots at Miller Lite in the 2019 Super Bowl going after them corn syrup. It kind of got off message.

BRAD SMITH: Yeah.

PETER GALBO: But look, the overall consumer, particularly younger consumers, are kind of shunning beer. This is a chance for them to start and gain new entrants into the category.