Anheuser-Busch Inbev is experiencing the lingering effects of a marketing promotion involving Bud Light and transgender influencer Dylan Mulvaney. The brewing giant reported a 10.5% decrease in U.S. revenue in the April-to-June quarter, primarily due to a decline in Bud Light volume. This decline resulted in Bud Light losing its title as America’s best-selling beer after more than two decades, slipping into second place behind Modelo Especial, another ABInBev-owned beer brand.
The controversy arose when Anheuser-Busch sent a commemorative Bud Light can to Mulvaney, who shared it with her social media followers. Conservative figures and others called for a boycott of Bud Light, while Mulvaney’s supporters criticized the brand for not providing enough support. Mulvaney herself revealed she faced bullying and transphobia and criticized the brand for not reaching out to her during the partnership controversy.
In the month ending July 15, Bud Light’s U.S. sales dropped by 26.5%, while Modelo’s sales increased by 13.5%. Bud Light held a 6.8% share of the U.S. beer market during that period, while Modelo held an 8.7% share. Despite the decline in Bud Light sales, Anheuser-Busch exceeded Wall Street forecasts, with an overall revenue increase of 7.2% in the second quarter, reaching $15.1 billion. This increase was supported by global brands like Stella Artois and Corona, offsetting the Bud Light sales loss. The company’s earnings before interest, taxes, depreciation, and amortization rose by 5% to $4.9 billion.
Anheuser-Busch has also faced political attacks, with Florida Governor Ron DeSantis suggesting potential legal action against the company due to its association with Mulvaney. DeSantis claimed that the state’s pension fund, which includes over $50 million worth of Anheuser-Busch shares, had been negatively affected by the controversy. DeSantis sent a letter to Florida’s State Board of Administration, requesting a review of how Anheuser-Busch’s conduct impacted the value of the pension fund’s holdings.
In response to these challenges, Anheuser-Busch InBev announced lay-offs of approximately 2% of its workforce, affecting around 380 employees across various corporate functions.
Overall, Anheuser-Busch Inbev is contending with the fallout from its Bud Light promotion involving Dylan Mulvaney, experiencing a decline in revenue and facing criticism and potential legal repercussions. However, the company’s global brands are helping to offset the Bud Light sales decline, and it continues to perform better than expected in terms of overall revenue.
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