Bud Light boycott over Dylan Mulvaney trans ad spot has already cost parent AB InBev $400 million

It can be attributed to the fact that consumers in the United States alone are boycotting AB InBev, suggesting that sales rose in Canada, which also includes North America. That translates into a drop in revenue of almost $400 million year-over-year. The Belgian brewer saw a 14% fall in Bud Light sales and a 10.5% drop in revenue in the June-to-April quarter in the United States.

Bud Light has been the reigning supreme in the U.S. Beer market for years. However, in May, AB InBev, the company that oversaw the marketing campaign Mulvaney was on leave from, distanced itself from a single post that was not even a campaign. Additionally, two executives from the company, who managed the social media aspect of the campaign, faced an increased backlash from the anti-trans community. After facing a boycott from consumers, the brand quickly changed its tune by ending its partnership ad with transgender TikTok icon Dylan Mulvaney in April.

However, the company reacted to the backlash by the time it had already begun losing consumers, dethroning it from the No. 1 status as a seller of beer in the U.S.

“During its earnings call on Thursday, InBev AB addressed the situation with Bud Light, also mentioning the boycott referring to it. In addition, they mentioned the beers Corona and Stella Artois, which are also produced by InBev AB.”

“We are actively engaging and listening to our consumers,” said Doukeris Michael, the CEO.

Following its recent advertising campaign disaster, the biggest beer producer in the world intends to persist in allocating resources to sales and promotional initiatives that strengthen its brand influence, keeping in consideration the lessons it acquired.

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AB InBev did not promptly respond to Fortune’s inquiry for a statement.

Sales of beer in other locations

During the corresponding period last year, it exceeded profit expectations of 0.4% by generating a 5% rise in profits for this quarter. AB InBev’s earnings have been boosted by the increase of 9% in drink prices, which consumers have accepted. The company’s performance in other regions has contributed to a 7.2% growth in total revenue for the second quarter, despite the underperformance in America.

The company decided to stick to its full-year outlook, despite the struggle to continue sales volumes of both non-beer and beer, as the U.S. Business offset its help to China-like markets with.

In the second quarter of 2023, Heineken experienced a decline in profits due to this fact. Consumers showed a preference for more affordable brands, however, the Dutch beer company, which holds the second position globally in terms of beer sales, raised its prices in response to the rise in inflation. Likewise, other significant participants in the beer sector are also grappling with the consequences of escalating prices, just like Heineken.

Nevertheless, the dispute encompassing AB InBev has led to certain victors, like its American rival Molson Coors, which has presently raised its annual forecast.

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