Bud Light continues to grapple with significant declines in sales and consumer confidence, following the controversial marketing campaign involving transgender influencer Dylan Mulvaney six months ago. Industry expert Harry Schuhmacher, the publisher of Beer Business Daily, now characterizes the damage to the brand as “quasi-permanent.” Despite initial hopes for a rebound, Bud Light remains down by around 30 percent in volume compared to the previous year, indicating that some consumers may be lost for good.
Both conservatives and liberals have boycotted the brand for different reasons, with conservatives criticizing the brand’s partnership with Mulvaney and Mulvaney’s supporters condemning Bud Light for not providing adequate support after the backlash she faced. Recent statistics reveal that Bud Light’s sales trends have continued to decline, with decreases of about 30 percent in both dollars and volume. Schuhmacher predicts that these year-over-year declines will persist until April and May of 2024, suggesting a prolonged recovery period.
The situation has become more troubling as it has started to affect retailers’ confidence in the brand. A loss of retailer confidence can lead to reduced shelf and display space, impacting visibility and inventory placement in stores. The summer of 2024 is seen as a critical period for Bud Light’s long-term success, and the brand must work to regain retailers’ trust. Despite the challenges faced, Bud Light has announced a $22.5 million investment to address the issues.
Wholesalers across North America have also been impacted by Bud Light’s struggles, losing store visibility and inventory loading opportunities. While Bud Light remains somewhat powerless to fix its losses, maintaining local connections with communities through wholesalers may be its saving grace. Nevertheless, it has been a challenging period for the brand.
Bud Light’s decline began after its partnership with transgender influencer Dylan Mulvaney, who featured Bud Light cans with her image on them as part of a controversial marketing campaign. The fallout from the campaign has persisted, resulting in Bud Light losing its status as America’s number one beer brand to Modelo Especial after over two decades.
Sales of Bud Light in off-premise locations like grocery stores and gas stations have significantly declined, with a 15.9 percent drop in dollar sales and a 20.1 percent decrease in volume over the past year. Millions of customers turned away from the brand, pouring beer down the sink and discarding cans in protest. The polarization even spilled into bars, where patrons argued over beer choices and some bar owners decided to stop selling Bud Light to prevent conflicts.
In August, Mulvaney addressed the controversy, emphasizing that she preferred not to name her critics to avoid giving them satisfaction. She also highlighted the importance of standing up for oneself and conveying one’s actual purpose, irrespective of gender.
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