Bad news continues to pour in for Anheuser-Busch.
According to a report from Fox Business, Bud Light’s parent company stock has been downgraded by HSBC as boycotts continue in bars and supermarkets all across the country.
From Fox Business:
HSBC has downgraded Anheuser-Busch InBev stock to hold amid a “crisis” following Bud Light’s marketing campaign featuring transgender activist Dylan Mulvaney.
Carlos Laboy, managing director at HSBC’s global beverage sector, told CNBC that there are “deeper problems than ABI admits” after the social media partnership with Mulvaney in April.
“Is ABI’s leadership getting the brand culture transformation right? It’s mixed,” Laboy wrote Wednesday in a note.
“At Ambev, we think the answer is ‘yes;’ in the US, we think it’s ‘no.’ The way this Bud Light crisis came about a month ago, management’s response to it and the loss of unprecedented volume and brand relevance raises many questions,” Laboy continued.
Laboy cited a Beer Marketer’s Insights note which reported a drop in beer sales of possibly over 25% in April.
“Why did its US leadership underestimate the risk of pushback given the recent experience of other firms? Is A-B hiring the best people to grow the brands and gauge risk?” the analyst added. “If Budweiser and Bud Light are iconic American ideas that have long brought consumers together, why did these marketers fail to invite new consumers without alienating the core base of the firm’s largest brand?”
While Bud Light sales have tanked, its competitors are reaping the benefits: Coors Light and Miller Lite saw their sales increase by nearly 21%, according to an analysis of Nielsen data.
More over at Fox Business:
Bud Light parent company's stock downgraded by HSBC amid branding 'crisis,' huge sales drop https://t.co/R0apz2zpzx
— FOX Business (@FoxBusiness) May 11, 2023
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