In the latest quarter, the global beverage giant Anheuser-Busch InBev reported a 2.6% increase in revenue, but its sales in the U.S. market told a different story.
The company’s sales to retailers in the U.S. saw a 13.7% decrease, primarily driven by a drop in volume for its popular Bud Light brand. This has been a continuing trend for A-B, with sales to wholesalers also declining by 10.1% and its earnings taking a hit with a 19.7% drop in EBITDA.
This decline in Bud Light sales can be traced back to a controversial partnership the brand made over a year ago with transgender influencer Dylan Mulvaney. In an attempt to update the brand’s image, Bud Light created and sent custom beer cans to Mulvaney to mark “365 days of girlhood”.
This move, along with comments from the brand’s marketing vice president at the time, Alissa Heinerscheid, sparked calls for a boycott from conservative influencers and celebrities. As a result, Bud Light’s sales began to plummet in April 2023, ultimately leading to its dethroning as the bestselling beer in the U.S. in favor of Constellation Brand’s Modelo Especial.
Despite A-B’s efforts to rehabilitate Bud Light’s image, such as new partnerships with UFC and the Olympics and releasing Super Bowl ads focused on patriotism and humor, the brand has still not fully recovered in the U.S. market. This quarter’s earnings report shows that volumes globally were down 0.6%, with A-B’s beer volumes down by 1.3%. While non-beer volumes did see an increase of 3.5%, it was not enough to offset the decline in beer sales.
As A-B works to turn around its sales in the U.S., the company’s overall revenue and sales globally remain strong. However, the decline of Bud Light, once a top-selling beer, serves as a cautionary tale for brands attempting to modernize and attract a younger demographic.
REPORT: Woke backlash continues to hammer @BudLight…
In reporting their first quarter earnings, Bud Light’s parent company, @AnheuserBusch, reported sales to retailers were down over 13% — primarily driven by a drop in Bud Light sales volume:$BUDpic.twitter.com/yQdSdwJpfs
— Will Hild (@WillHild) May 9, 2024
The backlash from the boycott and decline in sales shows the potential impact of a misstep in marketing and the importance of understanding and catering to a diverse consumer base. Moving forward, it will be interesting to see how A-B continues to navigate the aftermath of this controversial partnership and if Bud Light will be able to regain its former status as the top-selling beer in the U.S. market.
