September 27, 2024
As non-fungible tokens (NFTs) sweep across industries and reshape the digital landscape, major brands are stepping into this vibrant space to harness their rising popularity.
Today, we review Budweiser's buzzy entrance into the realm of NFTs, diving into the art and the benefits they bring to collectors and fans alike.
Budweiser has a total of 4 collections as of May ‘23. Here’s a high level look:
In a stroke of creative genius, Budweiser's Genesis collection pays homage to the brand's storied history by featuring 1,936 editions, commemorating the year (1936) the iconic Budweiser can first graced the shelves. Each NFT features five unique traits: Background, Can, Crown, Frame, and Koozie; with designs meticulously curated from a rich archive of photographs, designs, and advertisements. Budweiser very effectively connected their long history with the web3 world for the genesis collection.
These NFTs also reward owners with exclusive privileges, such as early access to future collections and coveted airdrops.
Budweiser's NFT sale, which commenced on November 29, offered two price tiers: $499 for a core can (1,000 available) and $999 for a gold can (a mere 36). Prioritizing a user-friendly experience, Budweiser sold these via their website and accepted credit cards for payment.
At the time of minting, these NFTs would have cost around 0.12 and 0.23 (in ETH terms), respectively.
The fervor surrounding Budweiser's NFT debut was palpable. The collection sold out within an hour, and in the first week alone, trading volume soared with 1,373 sales at an average price of 0.47 ETH – a staggering 4x return for early minters. The peak average sale price reached an impressive 0.856 ETH. At last check, the most recent sale occurred on May 1, 2023, and fetched a respectable 0.15 ETH.
For its second collection, Budweiser joined forces with Vayner3 (Gary Vaynerchuk’s web3 company) to showcase 22 trailblazing musicians hailing from around the globe and spanning diverse genres. These NFTs symbolize early support for the artists, enabling fans to proudly show their loyalty before the musicians skyrocket to stardom. Vayner likens this innovative concept to collecting "rookie cards," a staple in the sports domain but new to the music industry.
Each artist is immortalized in 500 NFTs, divided into three tiers of rarity: 400 Core, 99 Rare, and 1 Ultra-Rare. The NFTs feature a looped animation of the musician posing atop a spinning record. The sole distinction among the three rarity levels is the color: Red for Core, Silver for Rare, and Gold for Ultra-Rare.
Rare and Ultra-Rare NFT holders enjoy exclusive perks, such as access to a virtual listening party on Discord with the artist.
Ultra-Rare owners also receive the once-in-a-lifetime opportunity of a 1:1 video call with the musician.
The perks for Rare and Ultra-Rare level is very enticing for early fans. However, it’s not clear on the NFT metadata whether that perk has already been redeemed, so buyer beware.
Launching on January 21, 2022, each token was priced at $499 (0.173 ETH at the time). Recent sales, approx four months ago, dropped significantly and ranged from 0.004 to 0.03 ETH.
For its third collection, Budweiser created a collection with Zed Run, an exhilarating web3 game where players collect, breed, and race virtual horses. Leveraging its expertise in sports sponsorship, Budweiser became the "Official Beer of Zed Run."
The pass features a 20-second looping animation of an avant-garde Budweiser bottle, topped with a horse head that folds down to reveal the bottle cap. The animation is reminiscent of Tony Stark coming out of his Iron Man suit.
The collection was available for pre-sale on June 9, 2022, only to those holding a Budweiser Heritage NFT and either a Zed Run Genesis racehorse or a NASCAR ZEN RUN pass. The total collection size comprised of 2,500 NFTs. Qualified accounts could snag a pass for $225, plus a gas fee, equivalent to approximately 0.17 ETH at the time.
On June 10, the pass became available to the general public for 24 hours.
In celebration of the launch, Zed Run unveiled an exclusive Budweiser Racetrack within the game, destined to host future Budweiser racing events.
Pass holders enjoyed a plethora of perks, including:
Resale volume for the collection was slow even in the early days, with only 48 sales in the first week, meaning owners kept it and did not list on secondary markets. This is likely because ownership perks were especially desirable for Zed Run players.
The highest average sale was 0.168 ETH. Recent sales averaged around 0.016 ETH, as most ownership benefits have expired or been redeemed.
On October 14, 2022, Budweiser introduced the BudVerse and FIFA World Cup collection, aptly named Budverse Live Scoreboard Collectible 2022. In yet another collaboration with Vayner3, this multimedia NFT collection celebrated Budweiser's longstanding partnership with the FIFA World Cup, dating back to 1974 (which is also the size of the collection).
Owners followed their favorite team's progress throughout the tournament, engaging in a pre-game minigame called the Budverse Penalty Kick. During matches, the NFT displayed real-time scores and the opponent's details, while post-game updates adorned winning countries with a crown.
After the tournament, the NFTs showcased the year and country, and the minigame was no longer playable (link to the game in metadata).
Owners also enjoyed exclusive physical merchandise, redeemable before December 31, 2022, including a Budweiser World Cup scarf, a color-changing Budweiser aluminum cup, and a Budweiser Football trading card.
NFT purchasers could also enter a sweepstakes to win a one-of-a-kind NFT, the Budverse 360 Experience, which also included a plethora of luxurious benefits:
All this for a mere $100 mint. This collection, with its innovative blend of gaming, multimedia, real-time elements, and enticing rewards, really stands out.
Sales activity in the collection has been low, with only 46 sales recorded during its peak week. The highest average sale price reached 0.0558 ETH, or roughly $74, on October 9. Currently, on May 1 ‘23, only three NFTs are listed for sale. It seems that owners are keen on holding onto these unique tokens, possibly because it represents a proof of participation, or because there’s a lack of interest for these NFTs after the tournament.
Similar to Coke’s NFT entry into web3, Budweiser experimented with innovative approaches and collaborated with different agencies to launch their collections. Unlike Coke, which opted for multiple blockchains, Budweiser exclusively minted their collections on Ethereum. Starbucks also opted to go with just 1 chain, but chose Polygon for its lower gas cost.
In a user-friendly approach, all four collections allow buyers to purchase NFTs using USD rather than crypto. Budweiser then mints and sends the NFTs to the buyer's wallet, eliminating the need for frustrating gas wars to mint directly on-chain.
Budweiser's NFT collections seamlessly integrate with their brand identity and mission, creating a cohesive digital experience. Their Genesis collection, the Heritage Edition, connects Budweiser's decades-long marketing history with the web3 world, inviting collectors to immerse themselves in the Budweiser universe. The Budweiser x Zed Run and FIFA World Cup collections continue the brand's long-standing tradition of sports sponsorship, expanding their digital presence into the web3 sphere.
Budweiser takes the NFT experience to another level by granting collectors exclusive real-world perks, such as early access to merchandise, intimate interactions with artists through one-on-one video calls, and an all-expenses-paid trip. By offering these enticing benefits, Budweiser elevates the value of their NFTs beyond mere digital ownership. With this strategy, the iconic brand aims to captivate digital art collectors and convert them into customers.
However, compared to Starbucks' NFT initiatives, which prioritize customer loyalty, repeat purchases, and gamification, Budweiser's event-driven collections lack an ongoing connection with their customers. Long-term interest and engagement wane once the perks are utilized or the event concludes.
Despite this, Budweiser's collections still outshine Coke's offerings, which primarily focus on collectible art, by providing a more extensive range of perks and benefits to their collectors.
Budweiser's experiment with NFTs has been noteworthy. The brand effectively harnessed the unique capabilities of blockchain technology and connected real-world perks to innovate within this emerging medium.
By tapping into their rich brand history and providing tangible benefits for NFT holders, Budweiser sets a powerful precedent for other brands to emulate.
No major brand, however, has been able to craft a blue-chip NFT collection capable of retaining value over an extended period. It seems we're still in the early stages of brands venturing into web3, with businesses cautiously experimenting to identify winning strategies.
This article is brought to you by Bambuu. We help businesses integrate digital assets to increase customer retention and brand awareness. If you’re interested in working with us, please join our waitlist.
