Anheuser-Busch InBev’s Q2 Results Show Decline in Sales and Profits
Anheuser-Busch InBev (AB InBev), the world’s largest brewer, has reported a decline in sales and profits in the US during the second quarter of 2023. The decline is primarily attributed to the performance of Bud Light, which has lost its position as America’s best-selling beer.
The decline in sales and profits can be traced back to a boycott of Bud Light following a promotional deal with a transgender influencer. Many conservatives, including presidential candidate Ron DeSantis, stopped buying Bud Light after the influencer, Dylan Mulvaney, posted an ad for the brand on her social media account.
In the video, Mulvaney shared an image of a personalized Bud Light can with her face on it, which was sent to her by the company to celebrate her 365th day living as a trans woman. Similar cans were sent to influencers across the country.
Following the backlash, Mulvaney expressed feeling abandoned by Bud Light and revealed that she had experienced significant bullying and transphobia. This controversy led to a decline in sales for Bud Light.
The financial results for AB InBev in the US showed a 15% decline in sales to wholesalers and a 14% decline in sales to retailers. Additionally, pre-tax profit dropped by 28% during the second quarter of 2023. Approximately two-thirds of the decrease in sales and profits can be attributed to the declining market share performance of Bud Light.
The remaining decline is due to increased investment and support measures for wholesalers. AB InBev has been taking steps to address the decline in sales and profits, but the impact of the boycott has been significant.
AB InBev’s Response
AB InBev has stated that it remains committed to its partnerships with organizations across various communities, including the LGBTQ+ community. The company emphasizes that the privacy and safety of its employees and partners are always a top priority.
Despite the decline in sales and profits, AB InBev continues to own major beer brands such as Becks, Budweiser, Corona, and Stella Artois. The company will need to strategize and implement measures to regain market share and improve financial performance in the US market.
Overall, the boycott of Bud Light following the promotional deal with a transgender influencer has had a significant impact on AB InBev’s sales and profits in the US. The company will need to navigate this controversy and work towards rebuilding its market position in the coming months.