Anheuser-Busch cuts agency fees in US

LONDON - Budweiser brewer Anheuser-Busch InBev (A-B) is scrapping agency retainers as part of a plan to cut $1.5bn (拢1.05bn) in costs.

Previously, A-B reimbursed agencies with a standard retainer. Now it will pay a set fee for specific projects, regardless of whether they take longer than previously agreed.

Other savings will be made within production, including set costs for certain projects and a disciplined approach to TV production -- emphasising on pre-shoot testing and not as much work on the cutting room floor.

Keith Levy, vice-president of marketing for A-B, said the company would be downsizing its roster and cutting ties with infrequently used agencies. According to the report in Advertising Age these could include Hill Holiday, Goodby Silverstein & Partners and Momentum Worldwide.

A-B's Budweiser account is handled by DDB, Chicago. Media and planning are handled internally.

Levy said: "It's more about 'Bill me by the project' vs. 'Bill me by the hour'. It's about redirecting budgets tied to retainers back to other parts of the business."

A-B was bought by InBev in July 2008 for £36bn, making the combined company the world's largest brewer.

Last week, it emerged that A-B's chief creative officer Bob Lachky was to step down from his role after 20 years with the company.