Bud Light Boycott Costs Anheuser-Busch InBev Over $1 Billion in Lost Sales
Anheuser-Busch InBev, the world’s largest brewer, faced a significant setback, potentially losing over $1.4 billion in sales due to a boycott following its brief collaboration with a transgender influencer to promote Bud Light beer.
Despite reporting record revenues for 2023, Anheuser-Busch InBev acknowledged that its US business suffered from the fallout of the boycott, with organic revenue in North America plummeting by $1.4 billion. The decline was primarily attributed to a sharp drop in Bud Light sales following backlash over the sponsored Instagram post featuring Dylan Mulvaney.
The controversy erupted last April, triggering an anti-trans backlash and calls for a boycott, which saw Bud Light’s market share decline significantly. Modelo Especial, a Mexican lager, seized the top-selling beer title in the United States the following month, ending Bud Light’s two-decade reign.
Despite efforts to recover market share, Bud Light’s progress has been sluggish, with only a marginal improvement in sales volume reported from May through February. CEO Michel Doukeris acknowledged the slow pace of recovery but remained optimistic about gradual improvement.
Analysts expressed disappointment with the company’s underwhelming performance in the US market, citing double-digit revenue declines and continued market share loss.
However, there were positive developments for shareholders as Anheuser-Busch InBev reached a tentative agreement with the Teamsters union in the United States, averting a potential strike of 5,000 workers.
Looking ahead, the company expressed optimism about the US market, noting a gradual improvement in beer market share since May. Meanwhile, in Asia, Budweiser Brewing Company APAC, a subsidiary of AB InBev, faced challenges with declining profits attributable to shareholders and falling sales volumes in China, despite growth in premium brand sales.
