Anheuser-Busch, the parent company of Bud Light, doubled down on its association with the advertising agency responsible for its controversial partnership with transgender influencer Dylan Mulvaney, despite widespread backlash from conservatives and from the LGBTQ community plummeting sales figures.
The brewing giant’s decision contradicts recent media reports claiming a severance of ties with the agency in response to the furor and massive loss of sales.
“There is no truth to this claim,” an Anheuser-Busch spokesperson clarified via email, disputing allegations raised by the New York Post last Friday.
The publication suggested that the brewer had dismissed the “third-party ad agency” behind the Mulvaney alliance, which had sparked a conservative uproar online.
The collaboration with Mulvaney, initiated in April, was a part of Bud Light’s #EasyCarryContest campaign.
The trans influencer, marking her “first year of womanhood” during March Madness, posted an Instagram picture featuring a can of Bud Light with Mulvaney’s image, causing a stir among conservative audiences and leading to a massive boycott movement.
Despite the controversy, Anheuser-Busch has maintained its commitment to supporting LGBTQ rights organizations, according to CEO Michel Doukeris. Doukeris also asserted that the Instagram post was not an official advertisement and blamed social media “misinformation” for escalating the conflict.
The CEO further disclosed that Anheuser-Busch InBev was offering a $500 bonus to workers personally threatened due to the Mulvaney partnership.
In the aftermath of the controversial campaign, Bud Light’s sales experienced a significant decline.
Retail sales plummeted 21.4% in the week ending April 22, according to Nielsen data analysis provided to Bump Williams Consulting.
However, Anheuser-Busch InBev’s Q1 earnings remained unaffected due to the timing of the Mulvaney partnership, which commenced after the reporting period ended.
Anheuser-Busch InBev reported a core profit of $4.8 billion for Q1, up 13.6% from Q1 2022, with revenue surging 13.2% year-on-year to $14.2 billion.
The brewing conglomerate’s other beer brands, including Stella Artois, Corona, Michelob Ultra, and Modelo, contributed to this financial performance.
In the wake of the backlash, Bud Light VP of marketing Alissa Heinerscheid and her supervisor, Daniel Blake, who manages marketing for Anheuser-Busch’s mainstream brands, were reportedly put on leave.
Todd Allen, former global VP of Budweiser, assumed Heinerscheid’s duties, while Blake’s replacement remains unannounced.
Anheuser-Busch’s insistence on retaining its advertising agency and the continued support for LGBTQ rights organizations, despite the recent uproar, raises questions about the brewer’s strategic direction.
While Anheuser-Busch aims to connect “authentically with audiences across various demographics,” its focus seems to have shifted from its core consumer base, leading to a critical loss in sales.
In the midst of this, the brewing giant must reevaluate its advertising strategy and refocus on reestablishing its relationship with its traditional audience.
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