The decline in sales of Bud Light has had far-reaching consequences, leading to the closure of two glass bottling plants and the subsequent layoff of approximately 650 employees. The Ardagh Group, a prominent global glass producer, announced last week that it would be shutting down its operations in Simsboro, Louisiana, and Wilson, North Carolina, effective July 17. Both facilities, which employed over 400 and 245 people respectively, were compelled to let go of their workforce.
Although the company did not offer a specific reason for the closures in its announcement, an investigation by WRAL revealed that the plummeting sales of Bud Light, one of Ardagh’s major clients, played a significant role in the decision. The beer brand, which had previously held the top spot as the best-selling beer in the United States, saw its reputation tarnished after a controversy involving transgender TikToker Dylan Mulvaney in April. Mulvaney criticized the company for its lack of support following backlash to her March Madness advertisement, prompting Bud Light to increase its support for the LGBTQIA community.
Employees at the affected bottling plants reported a sharp decline in productivity since Mulvaney’s promotion went online in early April. As a result, machines were taken offline, and the lower demand was attributed to the Bud Light situation, as stated by journeyman machine repair mechanic James Munhall.
According to a memo obtained by the news station, corporate management declared on May 18 that the two plants would be closed due to sluggish sales with Anheuser-InBev, the parent company of Budweiser and Bud Light. The majority of the work at the facilities involved producing bottles for these beer brands.
The decline in Bud Light sales continued, with the brand experiencing one of its worst weeks in terms of sales, down 28.5%, in the week ending June 17. This decline surpassed the previous week’s loss of 26.8% and set a new record low, lower by over 26%, during the week ending May 25. These ongoing sales drops significantly contributed to the challenges faced by the glass plants in their supply chain.
Ardagh, headquartered in Luxembourg, had previously disclosed a 9% decline in shipments and revenue in North America during a sales call in February. The company’s announcement of plant closures last week attributed them to a multi-year performance optimization program aimed at enhancing capacity and cost optimization.
While the affected employees at the Wilson plant are in the process of negotiating severance payments through their union, finding comparable union employment has proven challenging. For many, this is the second time in the past decade that Ardagh has closed a factory that employed their family members, leaving them devastated and uncertain about their future prospects.
DailyMail.com reached out to Ardagh Group for comment, but no response was received. Anheuser-Busch, the parent company of Bud Light, has previously acknowledged the impact of the boycotts on frontline workers and wholesalers, as conservatives stopped purchasing the beer due to the Mulvaney marketing controversy.
The relationship between Mulvaney and the beer company remains disputed, with Anheuser-Busch officials initially stating that the advertising campaign was the idea of an external agency. However, Mulvaney criticized the corporation for its lack of public support, highlighting the importance of standing by transgender individuals.
Despite the challenges faced by Bud Light and its parent company, Anheuser-Busch has emphasized its commitment to programs and partnerships within the LGBTQ+ community. CEO Brendan Whitworth faced criticism for his handling of the situation and his refusal to rule out future collaboration with Mulvaney. In an interview with CBS Mornings, he focused on the social conversation sparked by the campaign but evaded direct answers regarding the impact and potential mistakes made.