Bud Light sales continue to decline weeks after the Mulvaney ad debacle

Bud Light sales have dwindled and stocks have been reduced in an ongoing fallout since the popular beer ran a promotion with transgender influencer Dylan Mulvaney last month.

Parent company Anheuser-Busch InBev (ABI) sold $71.5 million worth of Bud Light in the week ended April 29, down 23% from a year ago, according to data from Bump Williams Consulting. The company said Budweiser sales totaled $31.5 million in the same week, down about 11%. Sales of other Anheuser-Busch brands—including Michelob Ultra, Busch Light, and Natural Light—were also very successful.

Mulvaney, a San Diego-based trans rights activist and representative, posted a video to Instagram on April 1 to promote a beer brand contest. In the promo, she showed off cans of Bud Lite with her face in celebration of her “365 Days of Childhood” series in which she documents her gender transition.

the post Conservatives were angered, including singers Kid Rock and Travis Tritt, and calls for a brand boycott. The 26-year-old Mulvaney, who has 10.8 million followers on TikTok and 1.8 million on Instagram, has received hateful comments online, as well as support.

This led Wall Street analysts to dub the episode a “crisis” and downgrade the company’s stock to “hold”. In a note Thursday, analysts at HSBC said the decline in Bud Light sales could be worse than reported, and that the drink’s distributors are considering distancing themselves from the brand.

“The manner in which this Bud Lite crisis unfolded about a month ago, management’s response to it and the unprecedented loss of scale and relevance of the brand raises many questions,” the analysts wrote. Citing Beer Marketer Insights, they said that “the trend of declining beer volumes is worsening and could decline by more than 25% in April,” while “US distributor relationships appear to be at an all-time low.”

“It is unclear how ABI will reverse the erosion of US size and commercial importance, and solidify distributor confidence, without changing the leadership,” the analysts said.

Anheuser-Busch did not immediately respond to a request for comment from CBS MoneyWatch.

Violent reaction from both sides

Anheuser-Busch CEO Brendan Whitworth on April 14 He regretted We regret the split caused by the company’s collaboration with Mulvaney, though his statement did not refer to the promotion directly. Soon after, two Anheuser-Busch InBev executives oversaw the failed marketing collaboration They are put on leave.

The company’s attempt to distance itself from the campaign only caused more Backlash from the LGBTQ+ communitywith some bars pulling all Anheuser-Busch products from their menus.

Anheuser-Busch global CEO Michel Docris said Budweiser still suffered a conservative reaction to the episode, in part because audiences mistakenly believed he had a long-term partnership with the social media influencer.

“We’re going to need to continue to articulate the fact that this was one could, one influencer, one engagement, not a campaign, and repeat that message for some time,” he said on a May 4 earnings call.

“Over the years, our global reach has enabled us to navigate different types of challenges, such as [a] He added: “Temporary bans on beer sales in certain countries and longer closures of bars and restaurants around the world.” “Regarding the current situation and impact of Bud Light sales, it is too early to get a full view.”

Docris noted that the decline in Bud Light sales in the United States in the first three weeks of April would account for approximately 1% of ABI’s global sales for that period.

The backlash didn’t affect all beer brands. Coors Light and Miller Lite sales are up 20% from a year ago, while Keystone Light grew 14%, according to Bump Williams.

ABI stock was trading Friday morning, at about $61 a share. The stock is down more than 7% this month.