In the ever-evolving marketplace, maintaining a brand’s relevance requires a continuous readjustment of strategy. Bud Light recently found this out the hard way. The brewing giant decided to bet it all on influencers Dylan Mulvaney and Alissa Heinerschneid in a bid to reposition the brand away from its perceived ‘fratty’, out-of-touch image. However, just six weeks into this rebranding venture, the brand seems to have rolled snake eyes.
Following the marketing strategy shift, Bud Light’s once esteemed image seems to have faltered. Its trademark product has suddenly fallen from its lofty perch of coolness, landing in the realm of the undesirable.
Ordinarily, such a backlash might simmer down with time. Yet, for Anheuser-Busch, Bud Light’s parent company, the situation looks increasingly worrisome. Sales are nosediving, stocks are plummeting, and the future earnings outlook appears grim. The clouds gathering over the brewing behemoth seem darker and more ominous by the day.
As Investor’s Business Daily reports, Anheuser-Busch’s market value has shockingly dropped by an astounding $15.7 billion since the commencement of April. That’s billion with a ‘b,’ an astronomical figure that seems to have surpassed even the most pessimistic projections at Anheuser-Busch when they endorsed Mulvaney.
Even industry experts are expressing concern. J.P. Morgan analyst Jared Binges has noted, “We believe there is a subset of American consumers who will not drink a Bud Light for the foreseeable future,” projecting a potential annualized volume decline of 12% to 13%.
This could mean a significant boost in sales for other beer brands such as Pabst Blue Ribbon, Yuengling, and Miller High Life, as disillusioned Bud Light consumers shift their allegiances. The blue-collar, everyday Bud Light loyalists who have stuck with the brand over the years now seem fed up with the perceived political agenda and are exercising their protest through their wallets.