Anheuser-Busch Inbev reported a drop in North American sales, following a promotion with a transgender influencer that led to a conservative backlash. The world’s largest brewer and parent company of Bud Light revealed that while revenue growth in most of its global regions increased, sales in North America declined. Adjusted earnings for the latest quarter rose by 4.1% to $5.4 billion, with revenues climbing 5% to $15.6 billion.
However, revenue in the United States during the July-September period tumbled by 13.5%, primarily due to the decline in volume sales of Bud Light. The backlash from the trans promotion caused Bud Light to lose its position as America’s best-selling beer after more than two decades, dropping to second place behind Modelo Especial in U.S. retail sales. Modelo, which is owned by InBev but imported and sold by Constellation Brands in the U.S., remains the market leader with a nearly 9% share in year-to-date retail sales through October 21st. Meanwhile, Bud Light holds an 8% share.
Data compiled by Bump Williams Consulting shows that U.S. dollar sales of Bud Light have been down 29% in the four weeks ending October 21st compared to the same period last year. For the year-to-date, Bud Light sales are down almost 19%.
Unique Perspective:
While Bud Light’s transgender promotion aimed to be inclusive and promote diversity, it faced a significant backlash from conservative consumers. This incident showcases the challenges that companies may encounter when trying to navigate issues related to gender and identity in their marketing efforts. In today’s society, it is essential for brands to carefully consider the potential impact of their campaigns on various audiences and be prepared to address any concerns or controversies that may arise. Ultimately, striking the right balance between inclusivity and consumer acceptance is crucial for brands seeking long-term success.
