Anheuser-Busch InBev, the Belgian-based beer giant, has experienced a significant decline in revenue and profit in the US during the second quarter due to the Bud Light boycott. The company has lost nearly $40 billion in value as a result. Despite this setback, Anheuser-Busch InBev has failed to address the controversial partnership with trans influencer Dylan Mulvaney, which has put Bud Light’s position as the top-selling brand in the US at risk.
In its earnings report, the company chose to highlight its own survey, which showed that “most consumers are favorable towards the Bud Light brand.” However, this survey was conducted during the same period when the backlash against Mulvaney’s promotion of Bud Light began. It seems that Anheuser-Busch InBev is choosing to ignore the costly consequences of its ill-advised partnership.
The decline in core profit in the US was attributed to the decrease in Bud Light sales as well as increased investments in sales and marketing. This decline has also affected other Anheuser-Busch brands, such as Budweiser and Busch Light, which have seen a 14% decrease in sales-to-retailers in the US. Bud Light was even overtaken by Modelo Especial as the top-selling beer in May.
The boycott and negative publicity have taken a toll on Anheuser-Busch InBev’s market value, which has dropped from $134.5 billion to $97.74 billion. This loss of market value has affected the company’s other brands as well.
Despite the decline in the US market, Anheuser-Busch InBev reported an increase in revenue during the second quarter due to strong sales in Brazil, China, and Colombia. However, its net profit dropped due to issues with shares.
Anheuser-Busch distributors are not optimistic about winning back disaffected customers. The beer distributor executive mentioned that consumers have made their choice and it is unlikely that a large percentage of them will return. The success in the beer industry depends on effective marketing strategies.
In an attempt to improve sales, Bud Light has released new advertisements with all-American themes. However, these efforts haven’t been able to reverse the decline in sales. The brand faced criticism on social media for its support of the US Women’s National Soccer Team, with some users questioning the inclusivity of the support.
Despite the ongoing backlash, the CEO of Anheuser-Busch, Brendan Whitworth, has refrained from commenting on the Bud Light-Mulvaney partnership. The company has tried to distance itself from the controversy by claiming that it was just “one post and not a campaign.” However, this attempt to downplay the situation has been met with skepticism.
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