2023-05-06 05:54:47
Beer giant Anheuser-Busch InBev said on Thursday it would focus its marketing campaigns on sports and music and appoint senior executives to oversee them, in the wake of controversy over a Bud Light promotion featuring a transgender influencer.
Anheuser-Busch reported a 13.6% increase in first-quarter earnings before interest, taxes and other expenses to $4.7 billion, and a 13.2% jump in overall revenue, to $14.2 billion, year over year, primarily due to higher prices and despite lower beer volume in many markets, including North America.
In a conference call with analysts to discuss the financial results, Anheuser-Busch executives were bombarded with questions regarding the implications of the deal. They repeatedly pointed out that the promotion was limited to one influencer, Dylan Mulvaney, and a social media post, and that the beer cans bearing his likeness were not produced for mass distribution.
The company said senior executives would oversee all marketing campaigns before they were launched and that it would focus its and marketing on sports and music. The company said it sponsored the recent NFL Draft and the Stagecoach Music Festival, which took place in California last week.
“Everything we do should be dedicated to beer and its promotion,” Anheuser-Busch CEO Michel Doukeris told analysts.
Beer will always be present during a debate, but the beer itself should not be at the center of the debate.
Michel Doukeris, CEO of Anheuser-Busch
Bud Light has been the subject of controversy since mid-March, when Mme Mulvaney posted a video on his Instagram account promoting a Bud Light March Madness contest to his 1.8 million followers. In her message, which was less than a minute long, she said the company had sent a can of Bud Light with her picture on it. An image of the can was embedded in the video.
The social media post sparked a backlash, with celebrities and conservative politicians calling for a boycott of the brand. Soon there were calls for a reverse boycott, or buycottencouraging people to buy Bud Light to show their support.
Concern among investors
Bud Light sales slumped in early April, prompting concern from investors who feared the message would hurt both Bud Light’s market position and that of other brands. from Anheuser-Busch. According to the Beer Business Daily, sales of Bud Light fell 17% in the week ending April 15.
Executives played down the decline, pointing out that it represented regarding 1% of total global volume and that it was too early to determine whether it would continue.
Shares of Anheuser-Busch rose nearly 3% following the call, to $65.56, and are up 10% on the year. The stock fell to a low of around $63 in April when data began to show declining sales.
In late April, the company said it had furloughed two executives involved in the promotion: Alissa Heinerscheid, vice president of marketing for Bud Light, and Daniel Blake, who oversaw marketing for Anheuser-Busch’s consumer brands. .
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