Bud Light, a well-known beer brand owned by Anheuser-Busch InBev SA/NV (AB InBev), the world’s largest brewer, has recently come under fire on Twitter. The criticism stems from a new advertisement that seems to ridicule its core consumer base.
In the first quarter of 2023, AB InBev posted a 13.2% revenue increase due to both volume and revenue per hectoliter growth. The company’s global brands, such as Budweiser, Stella Artois, and Corona, saw a combined revenue increase of 15.4% outside their home markets. The company’s earnings per share (EPS) for the quarter were $0.65, exceeding the consensus estimate of $0.64 by $0.01.
Despite facing challenges in the alcohol industry, AB InBev has diversified its product portfolio, leading to strong results in the first quarter of 2023. The company’s impressive earnings, revenue, and normalized EBITDA growth demonstrate its resilience and financial stability.
After a two-month Twitter hiatus following a significant sales drop, Bud Light released a new ad. The sales decline was largely due to the controversial decision to appoint Dylan Mulvaney, a trans-TikTok star, as a brand ambassador. This move was perceived as inconsistent with Bud Light’s traditional image as a beer for the working class.
However, the brand has encountered difficulties. Bud Light sales have plummeted, experiencing a 24% drop. Despite this, Deutsche Bank has upgraded its rating on Anheuser-Busch stock, predicting that the worst of the boycott is over and expecting headwinds to diminish.
Instead, the new ad, designed to reconnect the brand with its consumers, provoked further criticism. It depicts Bud Light drinkers as clumsy and foolish in summer scenarios, leading to widespread disapproval on social media regarding the brand’s marketing direction.
Ad meeting:
Not bad but we need a White guy falling in the lake, walking through a screen door and falling out of a hammock! https://t.co/sPCJUkuIb0— White Men Are Stupid In Commercials (@StupidWhiteAds) June 22, 2023
Bud Light’s parent company, Anheuser-Busch InBev North America, had previously recognized the negative impact of recent controversies on their brand and consumers. CEO Brendan Whitworth reassured consumers that the company had learned from its mistakes and would return to promoting the aspects of Bud Light that consumers have traditionally valued.
However, the backlash against the new ad suggests that Bud Light’s marketing team may still be misaligned with its consumer base. The ad was criticized for its portrayal of Bud Light drinkers and its apparent lack of diversity, with most of the negatively portrayed individuals being white. This observation sparked further discussions on social media about representation and stereotypes in advertising.
— BRiv (@BRiv70) June 22, 2023
The negative response to the ad was evident in the high number of replies compared to likes on Bud Light’s tweet about the ad, a phenomenon known as being “ratioed.” This suggests that the brand’s attempts to recover from its previous missteps may not be hitting the mark with its audience.
