The marketing disaster surrounding Bud Light shows no signs of relenting, as the brand continues to face a grim decline in sales. Data from the industry reveals that Bud Light has experienced six consecutive weeks of plummeting sales, primarily due to an ongoing boycott that has left retailers struggling to offload their unsold stock.
The calamity traces back to Bud Light’s ill-fated collaboration with transgender influencer Dylan Mulvaney. This partnership has sparked significant backlash, prompting Anheuser-Busch to resort to drastic measures, including heavy discounts, in a bid to clear their inventory.
Analysis of Nielsen IQ data by Beer Business Daily underscores the magnitude of the decline, with Bud Light sales dropping by a staggering 28.4 percent in the week ending May 13, following a preceding 27.7 percent decrease. The situation became all the more dire as reports surfaced of 24-packs of Bud Light being sold for a mere $3.49 at select stores.
The repercussions extended beyond Bud Light, impacting other Anheuser-Busch products. Sales of Budweiser Red experienced a 14.9 percent decline, while Michelob Ultra witnessed a notable 6.8 percent drop. In a twist of fate, competitors Coors Light and Miller Lite saw substantial sales increases of 16.9 percent and 15.1 percent, respectively, capitalizing on Bud Light’s misfortune.
To salvage the upcoming Memorial Day weekend, Anheuser-Busch swiftly implemented a promotional rebate strategy. The company introduced the Anheuser-Busch Digital Prepaid Mastercard, which offers a rebate equivalent to the purchase price of a 15-pack or larger, up to $15, for any quantity of Bud Light, Budweiser, Budweiser Select, or Budweiser Select 55. Some retailers, shrewdly pricing their Budweiser products below the $15 rebate threshold, effectively made these purchases free for consumers.
Industry analysts at Beer Business Daily believe that additional summer promotions might help rejuvenate Budweiser’s sales figures. They anticipate an exceptionally promotional summer, surpassing even the historic “price war to end all price wars” triggered by the aftermath of Hurricane Katrina in 2005, which flooded the trade with beer inventories.
In a peculiar turn of events, this external catalyst for a large-scale price war has disproportionately affected Anheuser-Busch, leading to significant financial losses. The company’s stock price has plunged by 14 percent, resulting in a staggering loss of nearly $19 billion. These numbers serve as a stark reminder of the wide-ranging consequences that ill-conceived marketing decisions can have on a company’s bottom line.