Sales of Bud Light dropped over the Fourth of July holiday weekend amid the monthslong backlash against the company over its decision to promote a transgender social media activist.
Industry data shows that sales of the light beer dropped 23.6 percent in the weekly period ending on July 8 as compared with the same period a year ago, according to Bump Williams Consulting citing NielsenIQ data. In the same time period, sales of Coors Light increased by 30.2 percent, Miller Lite jumped 25.2 percent, and Modelo Especial was up 20.7 percent.
The most recent Bud Light drop is smaller than the two weeks prior when it declined by 28.5 percent and 27.9 percent, respectively, the data shows. But a report from the Daily Caller, citing industry data, found that other Anheuser-Busch brands have suffered, too, as Budweiser saw a 6.6 percent drop in sales in the week ending July 8.
The sales slump started when Bud Light made a beer can with transgender influencer Dylan Mulvaney’s face on the front before the influencer posted the can on social media, declaring the two were partners. Executives with Anheuser-Busch later told analysts in May that there was no official partnership and that one can was made.
But by that point, the damage was already done. For the months of May and June, Modelo Especial, which is owned by Constellation Brands, overtook Bud Light as the No. 1-selling beer in the United States, according to industry data.
A number of non-Anheuser-Busch-owned beers, such as Miller Lite, Coors Lite, Yuengling, and more, have seen sales upticks since the controversy erupted in early April.
“The Fourth of July is the biggest beer holiday in terms of retail sales and an opportunity to move a lot of volume,” Dave Williams, vice president for analytics and insights at Bump Williams Consulting, told the New York Post several days ago. “And there has been no notable signs where the course has changed for Bud Light.”
Bud Light has attempted to pivot from the controversy by deploying advertisements that feature sports figures, American flags, and iconic U.S. landmarks. However, commenters on social media have largely pilloried the company and have demanded the firm apologize for the incident.
Anheuser-Busch’s U.S. CEO, Brendan Whitworth, has avoided publicly and explicitly defending the Mulvaney promotional materials. However, he has also not apologized or described the collaboration as a mistake.
When he was asked about the transgender controversy, Mr. Whitworth told CBS News: “Over the last month, we’ve talked to over 100,000 consumers and their feedback is very clear. “The feedback is to reinforce what Bud Light has always meant to them, which is good times, goodwill, and easy enjoyment,” he also said.
Since the advertising fiasco, some analysts and former Anheuser-Busch officials have claimed the company doesn’t know its customer base and said that a brand like Bud Light shouldn’t wade into socio-political matters.
“Until we find a CEO that is going to address this head-on, I don’t think this situation is going to go away,” former Anheuser-Busch executive Anson Frericks, a frequent critic of his former company, told Business Insider. “In the best interest of shareholders, they need to find a CEO who will address this head on. We’ll continue to see sales drop, and shelf space at retailers lost, and that will put thousands of people’s jobs at risk, both at Anheuser-Busch and at wholesalers partners.”
Last week he told Fox News, “I think I’m even more shocked, though, about the lack of clear response that the current CEO has delivered during this crisis,” adding, “There’s going to be more employees at risk if we don’t find a CEO who can somehow address the situation, get those customers back that were always loyal to Bud Light and move this company forward.”
The Epoch Times has contacted Anheuser-Busch for comment.
Responding to a decline in weekly sales last week, a spokesperson for Anheuser-Busch told news outlets that for the year-to-date period, Bud Light is the “No. 1 brand in the industry” in both dollars and overall volume at an “8.7 share.” “The Anheuser-Busch portfolio continues to be the leader of the category as the No. 1 brewer at 35.6 share in the latest week,” the spokesperson said.
Meanwhile, some conservative influencers accused Bud Light of promoting a left-wing, transgender agenda in the vein of other major corporations in recent years.
Conservatives, meanwhile, have proclaimed the boycott as a cultural victory. Other companies like Target have also been subject to a similar backlash and have seen their stock valuations drop.
“The Bud Light and Budweiser share losses would persist through the year and we believe that the consumers who have opted to move away from those two brands are ultimately lost to the company,” TD Cowen analyst Vivien Azer told Reuters this month.
Ms. Azer added that consumers had quickly figured out AB InBev’s other beer brands such as Michelob Ultra and Natural Light, which have also seen declines in sales i recent weeks.