Stella

In: Business and Management

Submitted By soonerinny
Words 971
Pages 4
Introduction Stella Artois is the embodiment of old European beer making. The company traces its roots back over 650 years but finds itself struggling to find relevance in the modern world. However, after what was initially seen as one of the most successful brand extension launches in recent history, Stella soon found itself with rapidly declining sales. How does this happen to one of the most prestigious beer manufacturers? How do they regain relevance in the modern world?
Stella Artois History of Brand Stella Artois traces its long history back to 1366 when the Den Hoorn brewery opened its doors for the first time in Leuven, Belgium. The Artois name first came to bear in 1717 when Sebastian Artois, then the master brewer at Den Hoorn, bought the facility and changed its name to the Artois Brewery. Stella, or star in Latin, first graced a bottle when his brewery began creating a special brew just for Christmas for their most ardent patrons. Stella Artois first began to appear on the European market around 1930. The brand continued to expand when InBev was formed and opened a fully automated brewery in Leuven in 1993. By 2006, total annual production was over one billion liters. When Anheuser-Busch was acquired by InBev, the new company AB InBev, created in 2008 a lower 4% alcohol content for the UK market and called it Stella Artois (Bamford, 2011).
Marketing Issues Stella 4% went from being hailed as the most successful alcohol launch in the previous ten years to experiencing a huge fall off in total sales volume after hitting its peak in 2009. There are a couple of key reasons why this drop off happened. Stella did not have to live long in the introduction phase of the product life cycle. Instead, due to the Stella brand name giving some identity right off the bat, the product immediately went into the growth stage. One of the key…...

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