Anheuser-Busch InBev is facing the challenge of slumping sales for Bud Light, resulting in the layoff of several employees. The company, in a statement, revealed plans to reduce its workforce by approximately 2% across all corporate functions, amounting to around 380 employees out of their 19,000-strong workforce. Although the exact timeline for the layoffs was not provided.
The decline in Bud Light sales can be attributed to a marketing campaign launched in April, featuring social media star and trans rights activist Dylan Mulvaney. This campaign sparked boycott calls from some conservatives, ultimately leading to Bud Light losing its position as the nation’s best-selling beer in May, with rival Modelo Especial taking the lead.
Recent sales data indicates a significant drop in U.S. sales for Bud Light, down by 26.5% in the month ending July 15, while Modelo experienced a 13.5% increase in sales. Bud Light held a 6.8% share of the U.S. beer market during this period, while Modelo held an 8.7% share. Sales figures for the week ending July 16 reveal that Bud Light generated $71.5 million in sales, whereas Modelo Especial generated $90.3 million, surpassing Bud Light. The third spot was occupied by Michelob Ultra with sales of $68.6 million, according to data from sales tracker Circana.
Anheuser-Busch CEO Brendan Whitworth emphasized the need to ensure long-term success for the organization, expressing that the corporate structure changes will enable their teams to focus on their core strength of brewing great beer.
The layoffs are reported not to affect brewery workers, drivers, field salesman, or warehouse staff. It should be noted that the promotion with Mulvaney involved an Instagram post where she showcased a commemorative Bud Light can featuring her face, celebrating her “365 days of girlhood” series on transitioning. The single post faced backlash from conservatives such as Kid Rock and Travis Tritt, urging a boycott of the brand. However, despite losing its top-selling position in May, Bud Light remains the highest-selling beer overall this year.
While Bud Light faces these challenges, it remains crucial for the brand to experience growth in sales during the pivotal months of July and August. These months will prove decisive in determining Bud Light’s sales trajectory for the rest of the year.
Overall, Anheuser-Busch InBev’s decision to downsize aims to position the organization for future success and focus on their brewing expertise.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
