Bud Light has witnessed a significant drop in sales following the introduction of an advertising campaign in April, featuring the well-known transgender advocate and TikTok celebrity, Dylan Mulvaney.
The campaign generated widespread criticism and negatively affected the beer company’s brand image. Consequently, Bud Light has experienced a continuous decline in sales, further exacerbating their current sales figures.
And there are no indications that it will get any better for the St. Louis, Missouri-based company, particularly after its latest ad featuring Super Bowl champion Travis Kelce which many are observing as a ‘death blow.’
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Bud Light thinks its client base are ‘stupid grunting cavemen’
Namely, on July 2, Bud Light released a new 15-second commercial starring Travis Kelce, an American football tight end for the Kansas City Chiefs.
The ad, called “Backyard Grunts with Travis Kelce,” seems to be targeting the company’s alienated male consumers, however, the majority of comments on the video implied that Bud Light is trying to save its reputation.
“Man Bud Light is going for the death blow at this point. This is what they think of their client base, stupid grunting cavemen.”
– one user commented.
“I don’t understand how this appeals to Bud Light’s target market, transgender youth.”
– another user wrote.
Costco to empty its Bud Light shelves?
Meanwhile, other speculations that emerged this week suggested that Costco (NASDAQ: COST), the world’s second-biggest retailer, is planning to empty its shelves of Bud Light. The rumors come after images that appeared on social media showed an asterisk sign above shelves stacked with Bud Light cases – which many saw as a warning that Costco does not intend to restock.
For that reason, consumers have previously named the asterisk sign as a “star of death” or “death star.”
“Is it just me…Or am I the only one who noticed that Costco has applied their infamous “Star of Death” on Bud Light being sold!”
– a Twitter user pointed out.
Bud Light stock price analysis
At press time on July 14, shares of Bud Light owner Anheuser-Busch InBev (NYSE: BUD) stood at $58.15, up 1.6% in the past 24 hours.
The stock gained more than 5% over the past month, showing some signs of recovery after a sharp May decline triggered by the ad involving Dylan Mulvaney. Last month, Evercore ISI analyst Robert Ottenstein said he believes the worst of the sales declines may have already passed.
Year-to-date, though, Bud Light remains in the red territory, down 3.6%.
Although BUD showed some resilience in recent weeks, there are no strong indications that the storm is over for the stock.
Bud Light sales have seen a steep downturn lately, causing the brand to lose its spot as the best-selling beer in the US. Recent data showed that Constellation Brands’ Modelo Especial accounted for 8.7% of overall retail beer sales during the four weeks ended July 1, compared to Bud Light’s 7%.
In addition, sales of Bud Light and Budweiser plunged 28% and 11.7% year-over-year, respectively, while Modelo’s sales climbed 8.5%.
If Bud Light continues to face ongoing criticism and consequent market share loss, it is likely that its stock price will also suffer negative consequences. The company’s financial performance could be adversely affected as investors respond to the declining sales and tarnished reputation.
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