iStock.com/Sundry Photography
Bud Light Reveals Aftermath of Controversy
February 29, 2024
In 2023, Anheuser-Busch InBev, the biggest brewer globally, faced a colossal setback, potentially losing $1.4 billion in sales due to a brief collaboration with a transgender influencer to endorse Bud Light beer.
Though reporting record revenues, AB InBev pointed out that its growth in the U.S. was limited due to a backlash triggered by a sponsored Instagram post featuring Dylan Mulvaney. Consequently, organic revenue in North America plummeted by $1.4 billion last year, mainly attributed to a decline in Bud Light sales, which forms a significant chunk of AB InBev’s revenue.
Following the partnership with Mulvaney, Bud Light sales nosedived as anti-trans sentiments stirred a boycott. The company’s lukewarm response further irked LGBTQ+ advocates. Subsequently, Modelo Especial claimed the top-selling beer spot in the U.S., ending Bud Light’s two-decade reign.
CEO Michel Doukeris acknowledged a sluggish recovery on Thursday when speaking to investors, with Bud Light regaining only 1.2 percentage points of lost market share from May 2023 to February 2024. Despite efforts, the pace remains slow, with the recovery of a mere 0.1 to 0.2 percentage points every few weeks.
Analysts criticized the underwhelming recovery, highlighting double-digit revenue declines and market share losses in the U.S.
In a separate development, AB InBev averted a potential strike by reaching a tentative agreement with the Teamsters union on Wednesday, benefiting shareholders. The strike would have seen 5,000 workers walk out at midnight on Thursday. The company remains cautiously optimistic about its U.S. business, noting a gradual improvement in market share since May.
However, AB InBev’s Asia business witnessed a setback, with Budweiser Brewing Company APAC shares dropping by nearly 7% in Hong Kong due to declining profits attributable to a one-off customs charge in South Korea. Sales volumes in China also dipped in the fourth quarter despite double-digit growth in premium brands.
The fallout from the Bud Light controversy serves as a cautionary tale, highlighting the delicate balance companies must strike when engaging with influencers in today’s social media landscape.
Recent News
Walgreens Settlement: What You Need to Know
Walgreens recently settled a class action lawsuit, potentially putting cash in the pockets of Americans who faced job denials due to background checks. The settlement, a result of alleged Fair Credit Reporting Act violations, offers up to $918.28 to affected individuals. While Walgreens didn’t admit fault, it agreed to pay an undisclosed sum.
California Electric Bill Overhaul: What’s Ahead
California’s electricity payment system is getting a makeover. Recently, state regulators greenlit a shift to flat-rate billing, aiming to curb surging energy costs. Under this new scheme, most customers of investor-owned utility companies will face a fixed monthly charge of $24.15, trimming the per-kilowatt-hour usage fee by five to seven cents.
AI Has Mastered the Art of Deception
AI, celebrated for its productivity-boosting capabilities, harbors a deceptive side as revealed by recent research. This unsettling finding underscores the need for heightened awareness and regulatory measures to address the risks posed by AI’s ability to induce false beliefs.
Chinese EVs Navigate Global Markets Amid Rising Trade Tensions
China’s electric vehicle (EV) sector is making strategic moves into offshore markets for increased funding, exemplified by the recent success of Zeekr, a premium EV brand under Geely, which saw its shares surge 34% in the largest US IPO by a Chinese company since 2021.