Anheuser-Busch, the parent company of Bud Light, has announced that its market share has stabilized following a recent fallout over a controversial partnership with transgender influencer, Dylan Mulvaney, and a subsequent drop in sales.
According to reports from the Associated Press, the total U.S. market share for all beer brands experienced a decline of over 5 percent, reaching 36.9 percent in April. However, Anheuser-Busch’s second-quarter report, published on Thursday, revealed that the company’s total beer industry share has remained stable since the last week of April until the end of June.
While the stability of market share offers some reassurance, the company did face challenges during the second quarter. Revenue declined by 10.5 percent, and sales-to-retailers dropped by 14 percent, primarily attributed to the volume decline of Bud Light.
The decline in Bud Light sales coincided with the brand’s partnership with Dylan Mulvaney for an Instagram advertisement featuring the influencer posing with a personalized beer can. The collaboration sparked significant backlash, leading to calls for boycotts from conservatives. Conversely, Mulvaney’s supporters and LGBTQ advocates claimed that the company did not adequately defend the partnership.
The aftermath of the controversial partnership resulted in Bud Light losing its title as the top-selling beer for the first time in more than two decades, with Mexican beer Modelo Especial surpassing it. It’s worth noting that Grupo Modelo, the producer of Modelo Especial, is also owned by Anheuser-Busch Inbev.
As of the month ending on July 15, Bud Light sales declined by a significant 26.5 percent, while Modelo’s sales saw an increase of 13.5 percent. In that period, Modelo held an 8.7 percent share of the U.S. beer market, compared to Bud Light’s share of 6.8 percent.
The impact of these developments has also had implications for the company’s workforce. Anheuser-Busch announced layoffs of nearly 2 percent of its U.S. workforce across all corporate functions.
In conclusion, Anheuser-Busch has weathered challenges to stabilize its market share after the controversial partnership with Dylan Mulvaney. While the revenue and sales declines are a concern, the company’s market share has shown resilience. The beer industry remains competitive, with Modelo Especial overtaking Bud Light as the top-selling beer. As Anheuser-Busch navigates through this period, it will be crucial for the company to address consumer sentiments and explore strategies to regain market momentum.
