There has been a recent development regarding Anheuser-Busch, a multinational beverage company. The company has faced some criticism due to its partnership with a certain individual, which has led to a significant backlash from consumers and investors alike. This situation has caused a major multinational bank, HSBC, to downgrade the stock status of Anheuser-Busch.
The downgrade means that investors are advised to neither buy nor sell shares of Anheuser-Busch. Carlos Laboy, the managing director for the global beverage sector of HSBC, released an analysis that stated the company’s efforts to shift its brand culture in the United States were handled poorly. As a result, the sales of Anheuser-Busch have continued to decline, which can be traced back to the partnership controversy with Dylan Mulvany.
For the week of April 29, according to data from NielsenIQ and Bump Williams Consulting, nationwide retail sales of Bud Light were down 23.4% compared to the previous year. This is a worse figure than the 21.4% decline from the previous week. Moreover, this marks the fourth consecutive week where sales have plummeted by double-digit figures.
“Is ABI’s leadership getting the brand culture transformation right? It’s mixed,” Laboy wrote in a note that was published on CNBC Wednesday, via the New York Post. “At [Brazilian beverage giant] Ambev, we think the answer is ‘yes;’ in the U.S., we think it’s ‘no’,” Laboy wrote.
“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 added. “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? 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?”
The boycott against Bud Light is growing to their other brands and the company is bleeding.