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Bud Light sales have been down for six consecutive weeks, as per industry data, due to a boycott that has led many retailers to sell off the unwanted beer. Its teaming up with transgender influencer Dylan Mulvaney proved to be a mistake, as sales figures declined steeply for Bud Light and its parent company Anheuser-Busch.
Nielsen IQ data reviewed by Beer Business Daily indicates that Bud Light volumes dropped 28.4% in the week ending May 13 and 27.7% the week before that. Budweiser Red sales declined 14.9% on the same week, while Michelob Ultra sales were down 6.8%. In stark contrast, sales for Coors Light skyrocketed up by 16.9% and Miller Lite was up by 15.1%.
Anheuser-Busch responded to the sales disaster by introducing a promotional rebate ahead of Memorial Day weekend. It offers an amount equivalent to the purchase price of at least one 15-pack or larger of Bud Light, Budweiser, Budweiser Select or Budweiser Select 55, paid for through the Anheuser-Busch Digital Prepaid Mastercard, up to $15.
However, given retailers sell 15-packs of Budweiser products for less than $15, consumers can technically get their purchases free or for a small amount excluding state restrictions or sales tax. The Beer Business Daily’s analysts anticipate more promotions and sales throughout summer aimed at turning Budweiser’s sales around. In fact, the publication thinks the summer of 2021 could be a promotional season that outshines even that of the price war after Hurricane Katrina of 2005.
Some analysts may see that the controversy over Dylan Mulvaney’s partnership with Bud Light has struck a chord with the conservative demographic, which has contributed to the decline in sales. Conservatives may have felt alienated or a sense of apathy in Bud Light’s support for Mulvaney, which caused them to choose alternative brands like Coors Light or Miller Lite instead. The drop in sales has affected not just Bud Light but also Anheuser-Busch’s other products. The boycott has caused stores to sell off the stock at lower prices to make space on their shelves.
Anheuser-Busch must find a way to regain lost ground after teaming up with someone who didn’t resonate with a segment of the population. With many conservatives looking for value for their money, Bud Light’s offering of a rebate may help bolster sales. Also, the upcoming summer months will provide an excellent opportunity to promote its products amidst increased marketing and promotional activities.
The Beer Business Daily says it expects many more promotional activities for Anheuser-Busch’s products during summer. The publication also explains that external events often spark plunging sales and, in this situation, the Mulvaney controversy triggered the decline in Bud Light sales. The report notes that Hurricane Katrina led to enough beer inventory back up in the trade to start a price war, similar to what could occur in the case of Anheuser-Busch’s beer inventory.
Although Anheuser-Busch only experienced a drop in sales for the discussed period, volume trends for beer sales have been on a steady decline over the past few years. Research shows that young people drink less beer than past generations, as they have switched to hard seltzer, flavored malt drinks, and wine.
With people slowly returning to their pre-pandemic habits, Anheuser-Busch may need to focus on innovation to broaden its customer base. The company’s alcoholic beverage portfolio includes a diverse range of products, some ranging from low-carb options like Michelob Ultra to classic brews like Budweiser, as well as flavored malt drinks like Best Damn Cherry Cola.
Anheuser-Busch has also been focusing on customer preferences by developing new products, like Bud Light Seltzer, which could make up for the decline in Bud Light volumes. Besides that, the company is providing gluten-free options, with Constellation Brands creating gluten-free beers like Omission and Estrella Damm Daura.
Besides, Anheuser-Busch has been paying attention to cultural preferences to cater to a broader audience. For example, the company released the African American lager, Black Crown, in 2013, which resonated with the audience. The company also launched the Busch Family Brewed reality TV series during the pandemic, intending to showcase its family tradition and heritage to a wider audience.
As Anheuser-Busch tries different approaches to jumpstart its sales figures, it’s essential that the company makes informed decisions to avoid controversies that may lead to unintended outcomes. Although its Bud Light sales seem to have been affected by the Mulvaney partnership, the company has been successful in creating a diverse portfolio that caters to different customer preferences.
Hopefully, the company’s promotion and sales efforts will pay off now and throughout the summer, helping the company increase its customer base and regain its position as the best-selling beer in the United States. However, the ongoing decline in beer volumes indicates the importance of the company’s continued efforts to cater to all ages and sensitivities with fresh ideas and new approaches.
The beer industry is highly competitive, and major brands are always looking for ways to innovate and stay ahead of the curve. Despite the obstacles it faces, Anheuser-Busch has shown that it’s fully capable of bending to consumer preferences and even using those preferences to shape its offerings and marketing campaigns.
In conclusion, the boycott against Bud Light and Anheuser-Busch stemming from the company’s teaming up with Dylan Mulvaney has caused sales to decline sharply in recent weeks, with retailers selling off inventory at lower prices to create space on shelves. The company’s promotional rebates, starting with Memorial Day weekend, are expected to help recover to a large extent and turn the tide in terms of sales. However, the company still needs to embark on innovative ideas and promotional marketing campaigns to attract more customers and to keep earnings up.
While the beer industry continues to evolve and customers’ preferences change, Anheuser-Busch must remain on top of trends, know their audience, and mitigate controversies that may lead to unintended outcomes. Apart from avoiding unforeseen issues, the company must continue to come up with new ideas and approaches through innovation to cater to different sensitivities and preferences.
By using current data on customer preferences and trends, market innovation, and effective marketing campaigns, Anheuser-Busch can overcome declining sales. The future of this and other beer brands rests on its ability to adapt, innovate, and provide customers with a diverse and affordable portfolio of alcoholic beverage options.
Therefore, the rise of Coors Light and Miller Lite, at least in the near future, should serve as a wake-up call to Anheuser-Busch. By keeping its promotions and sales activities on point and staying on top of consumer preferences, the company can emerge successful and recapture its previously very dominant market position.