Despite declining sales, Bud Light distributors remain loyal to the brand.

26-04-2023
PixelVortex
Despite declining sales, Bud Light distributors remain loyal to the brand.
Bud Light
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Despite a recent controversy surrounding Bud Light, beer distributors are standing by the brand and its parent company, Anheuser-Busch. The controversy began when two Instagram posts featuring transgender influencer Dylan Mulvaney sparked outrage from some people on the political right and led to a decline in sales.

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In an effort to address the situation, Anheuser-Busch held a meeting with wholesalers on Tuesday at the National Beer Wholesalers Association Legislative conference. They aimed to dispel any misconceptions about the Mulvaney campaign and correct any misinformation or confusion surrounding it. The company emphasized that it was not a formal advertising campaign and that the single can given to Mulvaney was not for sale to the general public.

Del Papa Distributing, a major Texas-based wholesaler, issued a statement earlier this week expressing support for Anheuser-Busch. While the company criticized the social media posts, they clarified that the campaign was not intended to make a political statement. The statement also emphasized that the can featuring Mulvaney was produced by a third-party ad agency, not Anheuser-Busch.

Despite these efforts, Bud Light sales have declined in recent weeks. According to BeerBoard, which tracks sales data at thousands of bars and restaurants, Bud Light sales at 3,000 locations declined by 6% from April 2 to April 15 compared to rival light beers, including Miller Lite and Coors Light. In the weeks before, customers had ordered Bud Light 15% more than rival light beers.

An analysis of NIQ data compiled by Bump Williams Consulting for the Wall Street Journal found that sales of Bud Light fell by 17% in the week ending April 15 compared to the same week in 2022. Meanwhile, sales of Coors Light and Miller Lite each grew by nearly 18% compared to the same week a year earlier.

Despite the backlash, many wholesalers are choosing to wait out the storm and expect the controversy to fade in the coming weeks. Del Papa Distributing emphasized the importance of not allowing an unfortunate decision to jeopardize the goodwill that has been earned over many years of being good friends and neighbors in their communities.

However, some distributors remain unhappy with Anheuser-Busch. They would have preferred a genuine apology from the company for the lost business they have had to deal with as a result of the controversy.

Anheuser-Busch has responded to the situation by making leadership changes. Last week, two Bud Light executives were placed on leave, including Alissa Heinerscheid, the brand’s vice president of marketing, and Daniel Blake, the vice president overseeing the market for mainstream brands.

Heinerscheid has previously emphasized the importance of promoting inclusivity to attract young drinkers and ensure the company's future. Bud Light has a history of appealing to LGBTQ+ drinkers and has released beer in rainbow bottles for Pride Month and partnered with LGBTQ+ support organizations.

Despite the recent decline in sales and controversy, many wholesalers remain loyal to Bud Light and Anheuser-Busch, hoping that the situation will resolve itself in the coming weeks.