Since 2013, beer sales by volume have been steadily declining. In 2019 alone, domestic beer sales declined by 3.6%, losing out to trendy hard seltzers, like White Claw and Truly, which experienced 50% growth in the same year.

While Michelob ULTRA’s health-and-wellness-oriented positioning is on-trend when it comes to health, the brand remains seen as a “diet” and “watery” beer by consumers. This perceptual issue is particularly acute with a younger, more urban demographic of drinkers who enjoy an active lifestyle and are more brand conscious. The brand significantly under-indexes the category (by as much as 60%) with men ages 21–49 and women ages 21–34.

To grow its share, we needed to shift Michelob ULTRA from a beer that was accepted for its health value to a brand that was demanded for its badge value.

To put it simply, Michelob ULTRA needed to matter in culture.

Summary: This is the story of how Michelob ULTRA used a sports sponsorship to change the game.

Background and Context: It was March 2019. Beer was declining. Michelob ULTRA had just signed its first deal with the NBA to be its official beer sponsor — a great opportunity to reach a new, younger audience — and then COVID-19 threw a wrench into everything.

The sports season — and beer sales — went into a tailspin. As quarantine set in, on-premise sales evaporated, fans feared a “lost season,” and athletes threatened not to play.

“Play games without the fans? Nah, it’s impossible. I ain’t playing.”

— LeBron James, March 6, 2020

So, as the official beer sponsor of a game that was shuttering, and in a world that wasn’t drinking socially anymore, Michelob ULTRA took its responsibility seriously. It was time to bring back the fans, the beers, and the joy of sports. The brand’s health depended on it.

Once favored for its health benefits, light beer sales have been declining 3%–4% per year since 2013. Michelob ULTRA, in particular, struggles with young, urban consumers. The brand significantly under-indexed the light beer category with men 21–49 (-49% on average) and women 28–34 (-17% on average).

Put simply, while the beer’s better-for-you product benefits appealed to this active consumer, the brand didn’t.

Creative Challenge:

How do we make Michelob ULTRA matter in a quickly changing, highly-sensitive cultural context? And not let that big NBA sponsorship investment go to waste.

Solution:

Michelob ULTRA virtually transported fans right back where they wanted to be… and where players needed them to be: Courtside.

While other leagues scrambled to install cardboard fan cutouts, Michelob ULTRA partnered with Microsoft and the NBA... and Michelob ULTRA Courtside was born.

Powered by the debut of Microsoft’s AI-driven Together Mode and 17-foot LED ring, the experience digitally transported fans into the NBA Bubble, from the comfort and safety of home. The experience boasted millisecond data transfers, a never-before-seen rail cam, and 120 spatial contact microphones, which redefined the live-watching experience.

Suddenly, the empty stands that plagued stadiums became an invaluable brand opportunity. Real-time player, fan, and broadcaster interaction made Michelob ULTRA a pivotal part of the season.

Execution:

To get Courtside, fans scanned their Michelob ULTRA bottles to win virtual tickets to 124 games live-broadcasted from the Orlando-based NBA Bubble. Calls-to-action across PR, in-store and digital trade, social, influencer, broadcast integrations, TVC, and more led to the most visited URL in the brand’s history, adding significantly to its CRM database.

The magic of the campaign went beyond the lucky fans who sat Courtside. Influencers (Jimmy Butler, Scottie Pippen, Peyton Manning, etc.) posted and celebrities (President Obama, Mickey Mouse, Lil Wayne, etc.) made surprise appearances all season, rubbing digital shoulders with unsuspecting fans. Courtside dominated headlines in sports, lifestyle, and news, becoming the #1 industry topic.

And across 81.5 million hours of NBA coverage, Michelob ULTRA proved its motto, “It’s Only Worth It If You Enjoy It.”