If the nation’s brewers were racers we’d be calling this the Silly Season, because like the game of musical chairs that takes place when drivers flit from one team to another, the same thing is happening in the world of beer.  While a lot of this involves NASCAR, the spill-off from the most recent developments could have a significant impact on drag racing.

 

In no particular order, Anheuser-Busch, makers of Budweiser, Bud Light and Busch Beer, among numerous other brands (A-B has been snapping up smaller brewers in the last 18 months, including Rolling Rock and Beck’s, to name just two), announced a while back that they would be ending their support of NASCAR’s premier support series at the end of the current season.  Their longevity with the series has been such that it’s been known as the Busch Series for, well, seemingly forever.

 

Nationwide Insurance has picked up the series sponsorship for a reported $28M – less than NASCAR was originally seeking, an indication that their once-unchallenged supremacy in all things motorsports may not be as dominant as once thought.

 

Meanwhile, A-B also announced they were letting Budweiser’s “Official Beer of NASCAR” contract lapse.  Coors picked that one up for a cool $20M.

 

Finally, the move in driver sponsorship from Dale Earnhardt, Jr. to Kasey Khane for 2008 and beyond will probably save the company an additional $5M to $10M per year.

If the nation’s brewers were racers we’d be calling this the Silly Season, because like the game of musical chairs that takes place when drivers flit from one team to another, the same thing is happening in the world of beer.  While a lot of this involves NASCAR, the spill-off from the most recent developments could have a significant impact on drag racing.

 

In no particular order, Anheuser-Busch, makers of Budweiser, Bud Light and Busch Beer, among numerous other brands (A-B has been snapping up smaller brewers in the last 18 months, including Rolling Rock and Beck’s, to name just two), announced a while back that they would be ending their support of NASCAR’s premier support series at the end of the current season.  Their longevity with the series has been such that it’s been known as the Busch Series for, well, seemingly forever.

 

Nationwide Insurance has picked up the series sponsorship for a reported $28M – less than NASCAR was originally seeking, an indication that their once-unchallenged supremacy in all things motorsports may not be as dominant as once thought.

 

Meanwhile, A-B also announced they were letting Budweiser’s “Official Beer of NASCAR” contract lapse.  Coors picked that one up for a cool $20M.

 

Finally, the move in driver sponsorship from Dale Earnhardt, Jr. to Kasey Kahne for 2008 and beyond will probably save the company an additional $5M to $10M per year.

 

Slightly declining TV ratings and some on-screen pans past empty seats at races like the recent Talladega 500 miler may be an indication that A-B is ahead of the curve in recognizing that NASCAR’s popularity may have indeed peaked and is facing a downturn.

 

Meanwhile, Miller Brewing of Milwaukee and Coors Brewing of Golden, Colo. have announced a major new marketing and distribution agreement that in some respects makes the two companies one.  Now operating under the moniker MillerCoors, the company controls 29% of the US market, while A-B continues to be the heavy hitter with 49%.  It’s destined to help both operations, strengthening Miller’s presence in the west, where Coors is strong, and boosting Coors’ exposure in the Midwest, where Miller is currently ahead.

 

How does all of this potentially impact drag racing?

 

Anheuser-Busch has decreased their involvement with drag racing in recent years, dropping their sponsorship of the Top Fuel Showdown and, for a time, also letting their “Official Beer of the NHRA” contract lapse.  That’s since been renewed.

 

But, A-B is extremely calculating in how they approach marketing opportunities.  They assign a dollar value to everything they do, and once prices exceed what they believe will be a profitable return, they won’t go higher no matter what.  Excellent case in point -- allowing Pepsi to out-bid them for Dale Earnhardt, Jr’s services, and settling for another young, good looking competitor in Khane.

 

With their pull-backs from NASCAR A-B now has a substantial war chest with which to play, which makes it possible that they’ll re-consider their involvement with NHRA drag racing, and possibly expand a bit.

 

In the case of MillerCoors, their expenditure of $20M for the Official Beer status at NASCAR demonstrates their seriousness in wanting to expand their exposure.  They may look at NHRA drag racing to further that expansion.

 

Even though neither company has a current presence in the sport, activities like the Mopar Block Party in Golden, literally within walking distance of the Coors headquarters, can’t be ignored.  The management at Bandimere Speedway maintains a positive relationship with the brewer, and clearly, they’ve been watching what drag racing can deliver.

 

We’re obviously just speculating, but it’s possible these recent developments could result in greater sponsorship for individual race teams and programs within NHRA drag racing.  Now it’s up to a marketing maven to make this happen.