How a Bud Light Boycott Cost AB InBev Over $1 Billion in Lost Sales
The Bud Light boycott had a massive financial impact on AB InBev according to its latest earnings report. The brewing giant said its North American business was significantly affected, with organic revenue plunging $1.4 billion as beer sales volumes tumbled. AB InBev blamed the decline primarily on falling Bud Light sales in the US stemming from the consumer backlash.
The boycott began last April after Bud Light partnered with a transgender influencer on Instagram to promote the brand. This sparked anti-trans sentiments and calls online to boycott Bud Light. AB InBev’s weak response to the controversy further angered LGBTQ+ advocates. Mexican lager Modelo Especial ended Bud Light’s 20+ year reign as the top-selling beer in the US in the following months.
The Slow Recovery
CEO Michel Doukeris said Bud Light has only recovered 1.2 percentage points of lost market share so far. While the recovery is ongoing, it remains gradual at just 0.1-0.2 points every 3-4 weeks – a much slower pace than expected. Some analysts criticized the company, saying US performance was “very underwhelming” as AB InBev lost share in a declining market.
However, AB InBev struck an optimistic tone around its US outlook. Doukeris stated Bud Light’s market share losses have continued to gradually improve since May. The recovery is also accelerating over time. While the financial impact was massive, AB InBev hopes to fully recover from the Bud Light boycott in the long-run.
