Bud Light sparked controversy in April when it decided to launch a brand partnership with transgender activist Dylan Mulvaney. A conservative boycott has ensued in the weeks since, leading to plummeting sales figures for Bud Light.
The independently-owned distributors who sell Bud Light have taken a massive financial hit from the Bud Light boycott. Anheuser-Busch is attempting to repair the strained relationships with these distributors facing the consequences of the disastrous Dylan Mulvaney marketing scheme.
Amid the controversy, these distributors are dealing with angry consumers who voice their frustration with sales associates and delivery workers and an accumulation of unsold inventory from the boycott. “This situation has impacted our people and especially our frontline workers: The delivery drivers; sales representatives; our wholesalers; Bud owners; and servers,” Anheuser-Busch CEO Michel Doukeris told investors on an earning call last week.
Doukeris also announced his company would mend the relationships with its distributors by investing in funds to support them while the Bud Light brand attempts to recover. “We are providing direct financial support to the frontline teams that work for us and our wholesalers,” Doukeris said. Reportedly, Anheuser-Busch will also pay $500 bonuses to delivery drivers, sales representatives, and other employees who are dealing with the consequences of the backlash firsthand.
The latest industry data indicates the boycott has led to a severe decline in Bud Light sales in April. Conservative commentator Collin Rugg tweeted, “Absolutely insane. The Bud Light boycott is working. Bud Light sales (outside of restaurants and bars) are down 26.1% for the week ending in April 22nd compared to the previous year. Sales were down 21.1% for the week prior. Volumes are down 8% for the year. Coors Light and Miller Light are picking up the slack as their volume was up 13.3% percent 13.6% for the same time frame. Go woke go broke.”
Absolutely insane. The Bud Light boycott is working.
Bud Light sales (outside of restaurants and bars) are down 26.1% for the week ending in April 22nd compared to the previous year.
Sales were down 21.1% for the week prior.
Volumes are down 8% for the year.
Coors Light and… pic.twitter.com/8lM7Y0MwMT
— Collin Rugg (@CollinRugg) May 2, 2023
Bud Light hopes to recover from the sales decline over the summer with a significant increase in advertising spending. “We are investing behind Bud Light tripling our need investment for the summer, and we are investing more together with our wholesalers in our local markets,” Doukeris said. “Just last week, Bud Light was on the stage at the NFL Draft. We released a new TV commercial that continues our campaign. The current campaign is easy to drink, easy to enjoy.”
However, if Bud Light cannot recover its brand image and slow the steep decline in sales, it could be in “serious trouble,” according to industry experts. Bump Williams, CEO of Bump Williams Consulting, pointed out that Bud Light is still the top-selling beer in the country, but if current trends continue, it could be outpaced by another popular beer. Williams said, “Bud Light is in serious trouble this year. I think it runs the risk of losing that No. 1 position at the end of calendar year 2023 to Modelo Especial.”
Dealing with the root of the problem, Anheuser-Busch fired the advertising agency that was responsible for the disastrous Dylan Mulvaney promotion. Furthermore, Bud Light VP of Marketing Alissa Heinerscheid and her boss, Daniel Blake, have taken a leave of absence.
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