Anheuser-Busch, the global brewing giant, has experienced a significant decline in its market value since April, primarily attributed to a boycott initiated by consumers in response to a controversial promotion featuring transgender influencer Dylan Mulvaney during the NCAA March Madness tournament.
The Bud Light brand, in particular, has suffered a staggering drop in sales, contributing to a $15.7 billion decrease in Anheuser-Busch InBev’s overall value. Furthermore, the company’s stock has plummeted by 11.9% since April 1, raising concerns about its future prospects.
Anheuser-Busch has lost $15.7 BILLION in value since Bud Light stabbed their customers in the back.
This movement is POWERFUL.
— Benny Johnson (@bennyjohnson) May 24, 2023
According to Jared Dinges, a beverage analyst at JPMorgan Chase, Bud Light sales have plummeted by over 23% since the week ending on May 6. This decline can be attributed to the swift backlash the promotion received, with conservative consumers leading the charge by advocating for a boycott of the beer. Dinges shared this information in a note to clients on Tuesday, referencing data obtained from NielsenIQ.
“We believe there is a subset of American consumers who will not drink a Bud Light for the foreseeable future,” he said. “We believe a 12% to 13% volume decline on an annualized basis would be a reasonable assumption.”
Mulvaney, a transgender TikTok influencer, was known for his “Days of Girlhood” series on TikTok, where he documented his gender change process. The campaign was part of Anheuser-Busch’s efforts to address declining Bud Light sales and attract younger audiences.
Mulvaney promoted Bud Light during the NCAA March Madness tournament in a video uploaded on April 1, 2023. The video sparked significant backlash from Bud Light consumers, leading to calls for a boycott of Bud Light and Anheuser-Busch as a whole.
Would you look at that.
Anheuser-Busch stock just CRASHED to its lowest trading value for all 2023 with absolutely no end in sight.
And Bud has lost over $10 billion in market cap since the boycott.
Strong Men killed the Bud Light brand.
Take a bow, mah boys.
We are powerful. pic.twitter.com/N5HowyTRik— Benny Johnson (@bennyjohnson) May 24, 2023
Earlier this week journalist Rita Panahi criticized Bud Light for “reckless corporate virtue signaling.” Bud Light has continued to face a significant consumer backlash after incorporating woke activism into its branding, which many viewed as insincere and politicized.
Panahi highlighted the devastating financial impact on the parent company. The “Bud Light crisis” has been dubbed the most impactful conservative boycott in modern history, persisting despite objections from prominent conservatives.
HSBC downgraded Anheuser-Busch, Bud Light’s parent company, due to concerns over the crisis. Anheuser-Busch CEO Michel Doukeris attributed the decline in sales to misinformation surrounding a single social media post featuring the transgender influencer. The incident serves as a cautionary tale for corporations engaging in political activism, revealing the risks involved in alienating consumers.