Anheuser-Busch, Bud Light's parent company, reportedly blamed a third-party agency for their partnership with Dylan Mulvaney, prompting nationwide boycotts that cost them over $5 billion in losses.
According to Fox News, Anheuser-Busch told US beer distributors they had cut ties with the agency to make amends with vendors weary over their tarnished reputation.
The company sent a letter to distributors stating they fired the marketing firm responsible for the sponsorship that started last month. Mulvaney, a transgender TikTok influencer, revealed that she was sent a can of Bud Light with her face printed on it as part of an ad for the company's Marc Madness contest and a way to celebrate a full year of girlhood.
Anheuser-Busch claimed that the beer can with Mulvaney's face was not produced in any pot of their facilities and blamed the ad agency entirely for the collaboration.
The company will triple media spending on advertising for Bud Light over the summer, which confirmed reports that the brewing company is planning a significant marketing push to recover its reputation.
How It Started
The controversy began when Mulvaney posted a photo with the beer can featuring her face. A second post showed Mulvaney in a bikini, frolicking in a bathtub while drinking a Bud Light beer as part of the partnership.
Following the posts, many wondered if it were part of an April fool's gag.
However, Bud Light faced backlash for their association with Mulvaney, who has been accused of promoting racist and anti-Semitic content on social media.
The company quickly issued a statement denouncing hate speech and stating that they do not support or condone it. They also announced that they would be ending their partnership with Mulvaney. On the other hand, Mulvaney denies a partnership with the brand.
What's Next
Bud Light's increased media spending on advertising is part of its efforts to rebuild its brand image and distance itself from the controversy.
It remains to be seen if these efforts will be enough to repair the damage done to Bud Light's reputation. However, the company's response to the controversy suggests they are taking the issue seriously and committed to making a positive change.
Overall, the controversy surrounding Bud Light damaged its reputation. However, the brand seems determined to move forward from this situation by implementing concrete actions focused on promoting inclusivity & responsibility throughout every aspect of its business operations.