Anheuser-Busch InBev still feels the effects of a controversial marketing campaign featuring Bud Light and transgender influencer Dylan Mulvaney.
On Thursday, August 3, the brewing firm revealed that its sales in the United States for the quarter of April to June were down 10.5% year over year, "primarily due to the volume decline of Bud Light." After more than two decades as the top-selling beer in the United States, it fell to second place in June behind ABInBev's other major brand, the Mexican Lager Modelo Especial.
The Bud Light Backlash
The firm received fire when Mulvaney shared a commemorative Bud Light can with her many social media followers via a TikTok video.
Bud Light was targeted by conservative groups and others who called for a boycott, while Mulvaney's allies slammed the beer brand for not doing more to back the trans influencer. Mulvaney has alleged she was the victim of bullying and transphobia, and she has criticized the company for failing to reach out to her after the uproar surrounding their collaboration.
According to CBS News, US sales of Bud Light were down 26.5% in the month ending July 15, while sales of Modelo were up 13.5%. During that time period, Modelo had an 8.7% of the US beer market compared to Bud Light's 6.8% share.
But despite a decline in Bud Light sales, the business still managed to beat Wall Street expectations, with total revenue increasing 7.2% to $15.1 billion from the same time a year earlier. It reported a 5% increase in EBITDA (profits before interest, taxes, depreciation, and amortization) to $4.9 billion.
CEO Michel Doukeris said Thursday in a conference with Wall Street investors that customers only want to have their beer without a debate. "They want Bud Light to focus on beer."
Anheuser-Busch InBev said this week that it would be eliminating the jobs of around 2% of its employees across every corporate department. Out of AB InBev's total workforce of over 19,000, that is around 380 people.
Also Read : Bud Light Parent Anheuser-Busch Lays Off Employees After Dylan Mulvaney Boycott Controversy
Potential Lawsuit?
Anheuser-Busch has also been the target of political criticism.
The governor of Florida, Ron DeSantis, has lately hinted that the state may sue Anheuser-Busch because of its partnership with Mulvaney. DeSantis told Fox News that the state's pension fund had invested more than $50 million in Anheuser-Busch shares before the scandal arose and that those shares had lost value.
DeSantis also wrote to the Florida State Board of Administration, which controls the state's pension system, requesting that they "review how AB InBev's conduct has impacted and continues to impact the value of SBA's AB InBev holdings."
