Anheuser-Busch InBev, the world’s largest beer company, faced the impact of a boycott against its flagship brand, Bud Light, with significant declines in revenue and core profit during the second quarter.

The US market experienced a 10.5% drop in revenue and nearly a 30% plunge in core profit, resulting in a loss of nearly $40 billion in the company’s value.

The boycott stemmed from a controversial collaboration with trans influencer Dylan Mulvaney, which placed Bud Light’s two-decade reign as the top-selling brand in jeopardy.

Despite the repercussions, the company made no explicit mention of the backlash in its latest earnings report, instead referring analysts to an internal survey claiming positive sentiments from most consumers towards the Bud Light brand.

During the same period when the survey was conducted, lasting from April 1 to June 30, the US market witnessed a decline in Bud Light sales volume, attributing the substantial core profit loss to this drop, as well as increased investments in sales and marketing.

The impact of the boycott extended to Anheuser-Busch’s other brands, with sales-to-retailers falling by 14% in the US.

Notably, Bud Light lost its top-selling position to Modelo Especial in May.

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Despite the challenging US market, the company reported an overall 7.2% increase in revenue during Q2, and profits after EBITDA rose by 5%.

The growth was primarily driven by surging sales in Brazil, China, and Colombia, where earnings increased by more than 20% in the second quarter.

Nevertheless, Anheuser-Busch distributors in the US acknowledged the difficulty of winning back disaffected customers, recognizing that many have made a clear choice to abandon Bud Light.

The company has been working on revamping its marketing strategies, introducing new ads centered around all-American themes like country music and sports.

Despite these efforts, the ongoing backlash surrounding the Bud Light-Mulvaney partnership persists, leaving many questioning the brand’s future prospects.

Anheuser-Busch’s CEO, Brendan Whitworth, has avoided discussing the possibility of working with the transgender influencer again in recent interviews.

As the beer wars continue, it appears that the ultimate success for beer brands hinges on effective marketing strategies.

Nevertheless, Bud Light’s sales have yet to fully recover despite attempts to reposition the brand with patriotic and sports-related ads.

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