Anheuser-Busch InBev, the proud custodian of Bud Light, is currently neck-deep in financial turmoil. A significant component of this predicament can be traced back to the controversial collaboration with the transgender activist Dylan Mulvaney. The aftermath of this questionable alliance has left the company’s shares in a freefall, wiping out an astonishing $27 billion from its market value since the infamous campaign was given the green light.
What started as a seemingly innovative partnership strategy soon became a significant liability. Many conservatives felt a sense of deep alienation, sparking a nationwide boycott against Bud Light and other products in Anheuser-Busch’s portfolio. The market was quick to respond, illuminating the devastating impact of choosing virtue signaling over respecting consumer sentiment and adhering to basic business principles.
The tangible cost of this questionable marketing move is evident in the declining market capitalization of Anheuser-Busch InBev. Over the course of the past two months, the company has taken quite the financial hit. The stocks of Bud Light’s parent company have plunged by more than 20% since the initiation of the controversial Mulvaney campaign.
Looking back to May 4, Anheuser-Busch’s market cap was confidently perched at around $130 billion. Fast forward to today, and it stands at a worrying $108 billion, shedding $22 billion in a short span of time.
The stocks, in tune with the declining market capitalization, have taken a nosedive. They hit a new eight-month low, hovering around $53, which is a stark contrast to the broader market trend that is witnessing gains. This decline was marked on March 31, precisely a day before Mulvaney flaunted customized cans of Bud Light in a TikTok video. These cans, gifted by the company, were intended to celebrate the anniversary of her coming out as a transgender.
The sales of Anheuser-Busch have been on a roller coaster ride – only, it’s all downhill. They’ve been sliding by 10% or more every week for the past month compared to the same time last year, as pointed out by the NielsenIQ data cited by Goldman Sachs. This declining trend in sales has coincided with the depleting market capitalization of Anheuser-Busch. Over the last two months alone, the company has seen a whopping $27 billion erased from its value.
The situation is akin to a ship in stormy seas. The seas, in this case, are the result of a contentious campaign that has not only rocked the ship but also threatened to capsize it. Anheuser-Busch InBev, as the captain of this ship, now faces the unenviable task of navigating these choppy waters. The question that remains is – can the captain save the ship from sinking, or will it be abandoned to the mercy of the raging sea? Only time will tell.
