Deutsche Bank analyst Mitch Collett wrote in Barrons that Bud Light’s “recent underperformance implies a permanent reduction in ABI’s U.S. business.”
“Our proprietary survey data suggests these headwinds are likely to fade even if we do not expect the U.S. business ever to fully recover from its current challenges,” the statement continued.
The analyst noted that 24% of Bud Light consumers have stopped purchasing the brand while another 18% are buying less.
“Taken together, our survey data shows that Bud Light as a brand faces significant challenges—particularly with older consumers. However, we believe the forward-looking data sets imply that the challenges will at least partially fade,” Collett added.
Another analyst shared that Bud Light will likely “permanently lose” between 15-20% of its volume but may later stabilize.
Throughout the month of May, Constellation Brands-owned Modelo Especial was the number 1 beer brand in the United States.
Michel Doukeris, CEO of Anheuser-Busch, told investors that he believes “misinformation” contributed to the fall of sales, appearing to deny the partnership between Bud Light and transgender woman, biological male Dylan Mulvaney.
Reporting from The Epoch Times:
Responding to the latest ad, podcast host Liz Wheeler wrote on Twitter that the company was trying to whitewash the past two months of controversy. “None of this is funny until & unless you apologize for using Dylan Mulvaney—a man pretending to be a woman—as your spokesperson. It’s insulting that you think an ad about summer will make us forget our principles. The boycott continues,” she wrote in a post.
