In a bid to recover from the fallout of the Dylan Mulvaney scandal, Anheuser-Busch is planning temporary packaging modifications for select Bud Light and Budweiser products, according to sources familiar with the matter.
Last week, the corporation convened a meeting with distributors at its US headquarters in St. Louis to discuss its strategy for addressing the criticism it faced. As part of its new initiatives, the company intends to temporarily alter the aluminum bottles used for Budweiser and Bud Light.
The CEO of Anheuser-Busch revealed plans to introduce camouflage-print bottles featuring imagery from the “Folds of Honor” program. The program provides scholarships to children and spouses of fallen or disabled American military service members and first responders.
An unnamed distributor disclosed, “It’s an aluminum bottle. It’s the only packaging I know of that will be changing, but I can’t say for certain.”
The controversy arose when Bud Light commemorated Mulvaney’s first year as an openly transgender woman by featuring her image on beer cartons. This move sparked backlash from conservative circles.
Anheuser-Busch intends to make significant brand investments throughout the spring and summer, and the temporary packaging change is part of these efforts. The company launched the campaign at the end of April, aligning with the NFL draft.
Over the weekend, the company promoted its Michelob Ultra brand in select New York City grocery stores by offering free “Ultra Mom” T-shirts to customers who made a purchase.
Industry experts anticipate additional marketing strategies, such as price reductions at retail stores, substantial investments in sports marketing, and incorporating themes like the US military, country music, farmers, law enforcement, and first responders in their advertisements.
According to research conducted by Bump Williams Consulting and NielsenIQ, Bud Light sales nationwide saw a 23.6% decline in the week ending May 6 compared to the same period last year. This decline was slightly more pronounced than the 23.3% dip observed in the previous week, ending April 29.
While other Anheuser-Busch brands experienced declining sales, the pace of decline slowed compared to the previous week. Natural Light saw a 2.5% drop, Michelob Ultra decreased by 2.9% (from 4.3%), and Budweiser declined by 9.7% (from 11.4%).
Amidst the aftermath of its ill-fated collaboration with the transgender influencer, competing beer brands are seizing the opportunity to gain ground against Bud Light, which holds the top position in the US beer market and generated $4.8 billion in revenue last year.