Modelo Especial to Debut New General Market and Hispanic Ad Campaigns

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No. 3 Import Launches First-Ever Online Ad Campaign With New :15 Spots and New Hispanic Ad Campaign Creative

After posting double-digit growth rates last year, Modelo Especial, the rich, full-flavored pilsner-style beer and No. 3 imported beer in the U.S., will debut new creative as part of a two-pronged advertising campaign in 2009. The beer will look to build upon its growth in the general market with new :15 spots to support the beer’s first-ever online campaign, while new Spanish-language TV and radio spots will debut as part of the Hispanic campaign.

Modelo Especial Hispanic Marketing Campaign

The beer has followed a unique pattern of establishing significant popularity in the Hispanic market before expanding to a mainstream audience. To generate additional cross-over growth, Modelo Especial launched its first-ever English language campaign in 2008 and will once again execute Hispanic and General Market campaigns in 2009. The expansion of Modelo Especial draft beer will also be key in increasing the beer’s popularity in the General Market.

“Modelo Especial is a unique brand that, in a challenging economy, continues to generate double-digit growth,” said Paul Verdu, vice president of marketing for Crown Imports. “The loyal Hispanic consumers and new crossover into the general market present a great deal of opportunity for the brand to grow in 2009.”

General Market and Hispanic Ad Campaigns

The highlight of the 2009 General Market Modelo Especial campaign is the first-ever online creative extensions. New :15 spots will debut online using the “Let it Be Served” tagline first introduced in print ads last year. The print and online creative celebrate Modelo Especial’s authentic Mexican heritage and premium positioning by featuring traditional Mayan foot soldiers whose proud role is to serve Modelo Especial to their Mayan King. Each character is animated to replicate Modelo Especial’s trademark golden bottle foil. Banner ads promoting the creative will appear on www.wired.com and www.men.style.com. Print advertisements will also run in Details and WIRED starting in May.

The Hispanic marketing campaign includes two new television spots that will air on national network and cable Hispanic TV. An extension of a campaign launched last year, the new TV spots focus on the quality of the beer and its taste profile, two attributes that are very appealing to the Hispanic population. In each spot two characters with polarized points of view, such as baseball vs. soccer fans or Reggaeton vs. Norteño-style music, disagree on almost everything only to find out that they can’t argue about the quality of Modelo Especial. Modelo Especial Hispanic ad campaign will also air four radio spots in the top 20 Hispanic markets. The radio ads include the same type of humor and cultural nuances that characterize the TV campaign, positioning Modelo Especial as a quality beer that appeals to all Latinos. In addition to radio and TV, new out-of-home creative will be introduced this year which will also appear in the top 20 Hispanic markets.

Integrated Promotional Support

Modelo Especial plans an integrated approach in order to create sampling opportunities and introduce the beer at targeted events through media partnerships. The brand will be the exclusive import beer at the WIRED Cafe held during Comic-Con 2009 in San Diego this July, an invitation-only, VIP lounge hosted by WIRED magazine, where entertainment insiders and film fans will gather to experience VIP hospitality, new product demos, and a celebration of pop culture. Modelo Especial will also be featured at a sampling event in New York City’s Meat Packing district with Details magazine in December called “Rock the Block” as well as other programs throughout 2009. Modelo Especial looks to expand its General Market reach through on- and off-premise promotions during Cinco de Mayo, and the Holiday periods when consumers tend to trade-up to imported beers. Also, Modelo Especial Draft beer will continue to rollout to additional markets this year.

Promotional support for the Hispanic ad campaign will focus on major holidays and interests of target consumers and will have both on-premise and off-premise extensions. Modelo Especial will execute Hispanic market promotions tied to Cinco de Mayo, Fiestas Patrias, Las Posadas, various soccer games and boxing. Hispanic model, actress and journalist Jellym Mejia will continue to serve as the Modelo Especial spokesmodel and the beer has signed on for a concert tour sponsorship with Banda Cuisillos, one of the most awarded Mexican bands of the Regional Mexican music genre.

Growth and New Product Launches

In 2008, Modelo Especial grew in sales by 10.6 percent selling 24.7 million cases, a feat for any brand in the current marketplace. Sales for Modelo Especial have grown at a double-digit rate for 17 consecutive years, more than any other beer in the industry, and it looks to continue growth in 2009 with the nationwide expansion of Modelo Especial Draft beer and the introduction of 18-pack cans.

Modelo Especial Draft was initially introduced in Phoenix and Houston in 2008, generating impressive sales results in all selected bars, pubs and restaurants. Furthermore, Modelo Especial’s 6-Pack and 12-Pack bottle sales recorded sales increases in grocery and liquor stores in Draft markets. Additional Modelo Especial Draft markets planned for expansion include the Southwest territory along with a possible Northeastern U.S. rollout.