Bud Light continues to face the consequences of the disastrous partnership with Dylan Mulvaney in early April. For five months, drinkers have boycotted the beer, choosing competitors who did not put a transgender activist’s face on their can.
The enormous impact of the controversy is demonstrated through the pitiful financial figures Anhueser-Busch has posted since the backlash started. Recent reports show that second-quarter revenue plummeted by almost $400 million compared to the second quarter of 2022.
The total domestic revenue from April to June fell by 10.5 percent, whereas in 2Q23, Anheuser-Busch earned 2.35 billion in sales in the United States. This is a staggering loss compared to the 2Q22 revenue of $2.73 billion. After just four months of controversy from the Dylan Mulvaney collaboration, the company has seen an annual decline of $390 million.
Bud Light released a letter for consumers in May trying to mitigate the ensuing crisis. “This was one single can given to one social media influencer. It was not made for production or sale to the general public. This can is not a formal campaign or advertisement,” it read.
“Anheuser-Busch did not intend to create controversy or make a political statement,” the statement continued. “In reality, the Bud Light can posted by a social media influencer that sparked all the conversation was provided by an outside agency without Anheuser-Busch management awareness or approval.” However, the dismal, ever-declining sales figures prove Anheuser-Busch’s damage control failed to make an impact.
The American Tribune recently reported on more sales figures that paint a dire picture for Bud Light. For the week ending July 22, Bud Light sales fell an astounding 26.8 percent year-over-year. This further declined from the previous week when sales dropped 26.1 percent. Simultaneously, Bud Light’s competitors have been gaining steam, seeing increases in their sales across the board.
Furthermore, the perpetual double-digit declines in sales have beer industry experts forecasting that Bud Light could potentially lose its title as the number-one-selling beer in America a lot sooner than they expected. Mexican beer, Modelo Especial, has already outsold Bud Light month-over-month since May.
Modelo has been nipping at the heels of Bud Light’s overall market share in the beer industry, edging closer to overtaking the woke beer. According to past reports, Model Especial’s market share had increased to 8.1 percent compared to Bud Light’s 8.7 percent. However, that gap has recently narrowed, with Modelo increasing again to 8.2 percent, whereas Bud Light fell even further to 8.4 percent.
Addressing the recent trends across the beer industry, CEO of Bump Williams Consulting Bump Williams told the New York Post, “It’s going to happen a LOT sooner than anyone had ever thought. We have it surpassing Bud Light mid-August.” Williams also said Modelo Especial is “the closest any brand has come to surpassing Bud Light as the King of Beers.”
Making matters even worse, a Texas-based distributor of Bud Light stated that many consumers will never return to the beer after the Mulvaney fiasco. “Consumers have made a choice,” said an executive at the anonymous distributor. “They have left [Bud Light] and that’s how it’s going to be. I don’t envision a big percentage of them coming back.”
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