According to a recent survey, many beer distributors think the ongoing Bud Light could be permanent, with some consumers never returning to the brand. The boycott against the brewing company has ensued for almost eight weeks, with sales perpetually declining compared to last year.
The financial services company and investment bank Jefferies Group LLC survey discovered that 65 percent of beer distributors anticipate the boycott to continue for at least another six months. Furthermore, 32 percent believe the boycott could be permanent, continuing indefinitely. For perspective, the survey findings indicate that one in three beer distributors see Bud Light never recovering from the Dylan Mulvaney disaster.
Moreover, Goldman Sachs conducted similar market research with an equally dismal conclusion. Goldman’s survey found that most participants believed Bud Light would not make a “full recovery” in “brand equity and market share.” This survey included dozens of beer distributors who cover nearly 200,000 retail outlets. Therefore, the opinions of these distributors have merit since they interact with the beer industry on a daily basis, getting a feel for consumer habits.
The Street published a similar article recently, which inferred that Bud Light would lose a significant portion of its business “permanently.” The report pointed out that Bud Light sales were down 24 percent compared to Memorial Day weekend a year ago, a holiday where beer is quite popular. For perspective, Bud Light is only selling three out of the four beers it was in the prior year.
Additionally, The Street comments on conclusions drawn from the financial institution Bernstein, which said Bud Light’s parent company Anheuser-Busch could expect a “permanent 15 percent haircut” with Bud Light sales. Furthermore, Bernstein lowered its 2023 profit expectations for AB InBev by 6.7 percent.
Aside from the dire financial implications of a permanent loss in sales, Bud Light has also been humiliated by losing its long-held spot as the number one beer in America. The American Tribune recently reported how Modelo has finally outsold Bud Light in recent weeks after perpetually creeping up in sales as the boycott raged on. Reportedly, Model Especial reached sales of roughly $333 million in the four weeks ending May 28, a nearly 16 percent increase year-over-year. During the same time frame, Bud Light’s sales were $297 million, which translates to almost a 23 percent decline compared to a year ago. According to Standard Sales Company L.P., “Since 1982, Bud Light has grown to become the best-selling beer in the United States and the No. 1 light beer in the world.” Bud Light’s legacy could now come to an end over one disastrous promotion.
According to a recent American Tribune report, Bud Light’s parent company Anheuser-Busch has hemorrhaged nearly $27 billion in market value. The stock has slid almost 20 percent, putting it in bear market territory. Week-over-week, Bud Light has been experiencing a plummeting sales volume and revenue. The week ending May 20 saw a volume decline of nearly 30 percent, with revenue down almost 26 percent. It will be interesting to see whose predictions are correct on the future of the Bud Light boycott, whether it will continue indefinitely or pass in the coming months.
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