Anheuser-Busch finds itself grappling with recent layoffs and a downturn in Bud Light sales, and a beer industry expert, Harry Schuhmacher, publisher of Beer Business Daily, offers unique insights into the situation. Schuhmacher points to a crucial factor: the need for decision-makers in New York City to be more in touch with Middle America. He emphasizes that brands like Bud Light should steer clear of controversial topics, instead focusing on their core mission of selling beer.
Last month, Anheuser-Busch announced layoffs affecting approximately 380 employees based in the U.S., particularly in the sales and marketing departments in New York City. Schuhmacher attributes this to a cultural shift within the company, dating back to its move of marketing and advertising teams from St. Louis to New York City in 2015. According to him, this relocation created a disconnect with Middle America, subsequently impacting Bud Light’s sales.
The company faced controversy surrounding a social media promotion involving transgender influencer Dylan Mulvaney, which triggered conservative backlash. This, combined with marketing missteps, contributed to the significant drop in Bud Light’s sales, losing about 30% of its volume in comparison to competitors such as Molson Coors and Modelo.
Schuhmacher suggests that Anheuser-Busch needs to actively listen to consumer feedback and make necessary changes to regain public trust. Additionally, he highlights the impact of on-premise sales at bars and restaurants on Bud Light’s overall performance.
On the other hand, Molson Coors experienced substantial growth in brand volume, led by Coors Light, Miller Lite, and Coors Banquet. Modelo Especial is also gaining momentum, and Schuhmacher predicts it might even surpass Bud Light to become the No. 1 beer in America if current trends continue.