Anheuser-Busch InBev, the parent company of Bud Light, faces a sharp decline in profits as the beer brand continues to suffer from an ongoing boycott. The company recently reported a 10.5% drop in U.S. revenue for the second quarter, along with a significant decrease of 28.2% in earnings before taxes, interest, and depreciation. These numbers reflect the damage caused by the boycott against Bud Light, which began in April.
Anheuser-Busch Remains Optimistic About Bud Light’s Image
Despite the challenging financial figures, Anheuser-Busch insists that the majority of U.S. consumers still hold a favorable view of the Bud Light brand. Based on a survey of 170,000 consumers across the country, the company claims that 80% of respondents maintain a favorable or neutral sentiment toward the beer.
Consumer Feedback and Expectations
Addressing the feedback received from consumers, Anheuser-Busch InBev CEO Michel Doukeris stated that customers want Bud Light to focus on its core product, beer. They also desire a beer-drinking experience free from debates. Additionally, consumers expressed a desire for Bud Light to concentrate on platforms that appeal to a broader audience, such as NFL, veteran charity Folds of Honor, and music.
Divergent Fortunes for Other Brands
While Bud Light’s sales have experienced a significant downturn, Anheuser-Busch reported an 18.4% increase in combined revenues from its global brands, including Budweiser, Stella Artois, and Corona.
Rapid Rise of Competitors
Bud Light’s market presence has been challenged by alternative beers such as Coors Light and Miller Lite, which have gained popularity. Bud Light’s decision to enlist transgender activist Dylan Mulvaney for a marketing campaign sparked criticism and fueled the boycott. As a result, Coors Light and Miller Lite have now surpassed Bud Light in total industry dollars.
Efforts to Regain the Top Spot
In an effort to reclaim its top position, Bud Light is shifting its advertising focus to quintessential American favorites like football and country music.
Despite the recent struggles, Anheuser-Busch remains hopeful that Bud Light’s popularity will rebound and regain its standing in the market.