Anheuser-Busch Inbev announced on Tuesday that while its revenue grew in most global regions, it experienced a decline in sales in North America. This decline is believed to be a result of the negative impact from a promotion involving a transgender influencer.
The world’s largest brewer and parent company of Bud Light reported a 4.1% increase in adjusted earnings for the latest quarter, amounting to $5.4 billion. Revenues also climbed 5% to reach $15.6 billion.
However, revenue in the United States for the July-September period dropped by 13.5%. AB InBev, based in Leuven, Belgium, attributed this decline to the decreased volume of Bud Light sales to retailers.
Bud Light experienced a significant sales decline following a conservative backlash resulting from the brand sending a commemorative can to transgender influencer Dylan Mulvaney in April. As a result, Bud Light lost its position as America’s best-selling beer after holding that title for over two decades. It has been surpassed by Modelo Especial, which is owned by InBev but imported and sold by Constellation Brands in the U.S. Modelo currently holds nearly 9% of the market share in year-to-date retail sales through October 21, while Bud Light holds an 8% share.
According to Nielsen data compiled by Bump Williams Consulting, U.S. dollar sales of Bud Light declined by 29% in the four weeks ending October 21 compared to the same period last year. Year-to-date sales are down by nearly 19%.
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