After a contentious advertising campaign, Bud Light sales are drastically down, which might have an adverse effect on the entire supply chain for the brewer.
According to a recent article published by Beer Business Daily, the volume of sales of some of Anheuser-Busch InBev’s brands dropped significantly over the course of the Easter holiday in some markets.
Bud Light Advertising Strategy
Suggesting that consumers were unimpressed with Bud Light’s new advertising campaign featuring transgender activist and social media influencer Dylan Mulvaney.
As a result of a decline in sales that has impacted Bud Light distributors, businesses throughout various geographic regions of the US supply line anticipate political backlash and subsequent sales impact from their demographic.
Consumer feedback is even more crucial for suppliers, such as Ball Corp., Roxland noted, as beer and soft drinks accounted for nearly 70% of Ball’s North American revenue while Anheuser-Busch made up roughly 13% of the aluminum can manufacturer’s total sales in 2022
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Controversial Campaign Prompts Stock Decline
Roxland maintained its Hold rating on Ball Corporation but issued a warning that North American volumes could come under pressure if this difficulty continued and urged that prospective investors wait until the negative effects of the campaign had diminished before making any purchases.
Bud Light has been silent on all of its social media accounts for over a week, with its most recent tweet being issued on April 1 in the midst of growing opposition to the advertising campaign.
Anheuser-Busch, which is the parent company of Bud Light, had a fall in its stock price of roughly 4% during the course of the preceding five trading days.
As a result of continuing drops in sales, the stock is currently trading at a lower price on Wednesday.
