Bud Light Parent AnheuserBusch Sees $27 Billion Gone, Shares Near Bear Market
AFTER
Two months ago, Bud Light launched an offensive marketing campaign featuring transgender activist Dylan Mulvaney that sparked customer backlash, boycotts and hit sales and value at parent company Anheuser-Busch InBev.
According to the Dow Jones Market Data Group, the market lost about $27 billion in value, falling to $107.44 billion at the end of May from $134.55 billion on March 31.
The stock is down 19.98% from its late March high, putting it on the verge of entering an official 20% bear market. May was the third worst month on record for corporate stocks.
Mulvaney received beer cans featuring the influencer as part of a promotion for the company's March Madness contest and to celebrate Mulvaney's first anniversary as a woman. The marketing move sparked a backlash among beer fans.
"The problem is that it puts your brand in a space where it shouldn't be, and it creates very strong feelings about something that has nothing to do with the product or its brand," Timothy said. Calkins, Vice President. Northwestern Kellogg's marketing president in an interview with FOX Business last week. "That's why I think a lot of brands are going to be very careful about what they do, especially around issues that aren't directly related to their product or service."
© Instagram/Fox News Bud Light faced backlash from longtime customers over a recent campaign by transgender activist Dylan Mulvaney. Instagram/Fox NewsOn April 14, Anheuser-Busch CEO Brendan Whitworth issued a statement regarding the controversy.
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“As CEO of a company founded in America's heartland more than 165 years ago, I have a responsibility to ensure that every consumer is proud of the beer we produce. We are honored to be a part of this country. Anheuser-Busch “employs more than 18,000 people, and our independent distributors employ an additional 47,000 associates. We have a proud history of supporting thousands of members, millions of fans and our communities around the world, military, first responders, sports fans and American workers,” said Whitworth. I never intended to engage in a divisive debate. Our mission is to bring people together over beer.
However, HSBC analyst Carlos Laboy and his team canceled the action on May 10.
"It is unclear how ABI can reverse the decline in volume and brand importance in the US and strengthen distributor confidence without management changes," the group wrote in a research note to clients, adding that it needed to restore investor confidence. :
“Volume stabilization and the erosion of brand relevance. A long-term plan to regain lost brand relevance for consumer brands. It shows that the marketing department is hiring people who have a strong sense of understanding core customers and integrating new customers into their base. "They wrote
Sales have stalled in recent weeks. Over the Memorial Day weekend, Fox News Digital reported that some Budweiser products were being sold for free at some stores as a result of a promotional discount offered by the company.
Bud Light sales fell 29.5% year over year for the week ending May 20, according to data provided to Newsweek by Bump Williams Consulting and Nielsen IQ. These data show that sales fell by 25.7% during the same period.
© (Photo by Erika Goldring/Getty Images for Bud Light) Bud Light sales fell 29.5% in the week ending May 20 compared to the same period last year. Erica Goldring/Getty Images for Bud LightAs Bud's mom continues to struggle, the contestants take advantage. Shares of Molson Coors, Constellation Brands, whose beers include Corona and Modelo, and Boston Beer, Sam Adam's and Truly Hard Seltzer, have risen this month, including on Wednesday.
Several executives associated with Mulvaney's marketing firm are reportedly on leave.
FOX Business did not immediately respond to requests for comment on Anheuser-Busch's stock.
Fox News Digital's Lindsay Cornick and Alexa Mutvelis contributed to this report.
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