Cheers to That! Anheuser-Busch Stock Finally Catches a Break After Bud Light Hammering Continues
Key takeaways
- Anheuser-Busch’s CEO has now stepped in to calm investor concerns over troubled Bud Light brand after Dylan Mulvaney controversy
- The stock rose nearly 5% after his rescue plan was announced
- Bud Light dropped out of the top spot for best-selling U.S. beer brand for the first time in 22 years
The Bud Light drama and the ensuing effect on the parent company Anheuser-Busch’s stock price has reminded all brands to understand their customer base fully. The CEO has now swooped in with a plan to save the troubled brand and boost sales — here’s the lowdown.
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What happened with Bud Light?
Bud Light first ran into trouble when its customer base wasn’t happy after transgender activist and TikTok star Dylan Mulvaney posted a partnership with the brand on Instagram. A boycott campaign against Bud Light soon emerged and has been raging ever since. When the controversy first emerged, Anheuser-Busch stock dropped 13.2% in a day.
CEO Brendan Whitworth addressed how the company would fix things with its customers on Thursday last week. “We recognize that over the last two months, the discussion surrounding our company and Bud Light has moved away from beer and this has impacted our consumers, our business partners, and our employees,” he said.
Whitworth announced plans to support its frontline workers, give financial support to its wholesalers and distributors, and boost brand investments in local markets. Whitworth will also be doing a U.S. promotional tour in a bid to restore confidence in the disgraced brand.
Anheuser-Busch’s stock market performance
The message did the trick. The share price trended upwards last week, finishing at nearly $59 on Friday — a 4.8% increase throughout the week. The brewing company’s stock is still down 2.33% in 2023 because of the boycott, which shows the consumer power at the heart of some brands.
It still faces an uphill battle to restore investor confidence. The brand’s market cap fell by $27 billion at its worst point, sales of Bud Light have dropped nearly a quarter (24%) and rival beer Modelo Especial has taken the coveted title of America’s top-selling beer after Bud Light dominated the top spot for 22 years.
The bottom line
Bud Light has a tricky path ahead: once customer respect is gone, it can be gone forever. Investors will hope that’s not the case with Bud Light and its CEO is working hard to restore consumer confidence — but will it be enough? Only time — and sales — will tell.
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