Anheuser-Busch InBev, the parent company of Bud Light, unveiled a steep 10.5 percent decline in its U.S. revenue in its Q2 earnings report.
With a sharp 28.2 percent decrease in core profit, Bud Light has seen a staggering loss of $390 million since last year, as reported by the New York Post. The decline has come amidst the brand losing its title as America’s favorite beer.
The New York Post disclosed that compared to Q2 2022, Anheuser-Busch InBev experienced a 14.1 percent drop in North America’s gross profit. The reported period extended from April to June.
The Washington Post emphasized that this decline was attributed to the increased expenditures in marketing, especially in assisting distributors who’ve been adversely affected due to Bud Light’s dwindling revenue.
A controversial collaboration in April with Trans TikTok influencer, Dylan Mulvaney, resulted in Anheuser-Busch InBev losing $40 billion in value. This collaboration led to nationwide boycotts and even celebrities such as Kid Rock and Travis Tritt voicing their opposition. Consequently, Modelo clinched Bud Light’s spot as America’s top-selling beer in June.
Amid this tumult, there was a consensus among Bud Light and Anheuser-Busch executives to “spend heavily on the brand after spending fell off a cliff last year.”
Adding to the controversy, Bud Light’s Vice President of Marketing Allisa Heinerscheid took a sabbatical post-April. A controversial interview had her suggesting that Bud Light needed to deviate from its “fratty” image to “attract young drinkers.”
The subsequent month, the advertising agency responsible for roping in Mulvaney was terminated by Bud Light. In an effort to mitigate the damage, Anheuser-Busch’s CEO clarified in a letter to distributors, stating the Mulvaney promotion was an isolated event, emphasizing, “We need to clarify the fact that this was one can, one influencer, one post, and not a campaign.”