Skip to content

Bud Light stock in jeopardy as distributors lose hope for sales rebound

Bud Light stock in jeopardy as distributors lose hope for sales rebound

Once a dominant force in the US beer market, Bud Light suffered a sharp decline in sales after it launched a controversial marketing campaign featuring Dylan Mulvaney earlier this year, which triggered widespread backlash and boycotts. 

As a result, the once best-selling brewer in the country faced significant challenges, with BUD stock price languishing in the red on a year-to-date basis.

But that may not be the end of troubles for Bud Light and the share price of its parent company, Anheuser-Busch InBev (NYSE: BUD). 

Notably, Bud Light distributors no longer expect sales to recover because they have given up on reclaiming the dissatisfied customers, the New York Post reported on July 31. 

Bud Light’s decline ‘could last for a while’

Namely, wholesalers have made peace with the fact that some of the customers are lost for good and that they should focus on attracting fresh consumers.

“Consumers have made a choice. They have left [Bud Light] and that’s how it’s going to be. I don’t envision a big percentage of them coming back.”

– said an executive at a Texas-based beer distributor.

David Steinmann, the executive editor of Beer Marketer’s Insights said that there are growing risks that the ongoing Bud Light rate decline “could last for a while and the distributors are worried about losing those drinkers to other similar brands.”

The sales decline

Since launching its ad campaign with activist influencer Dylan Mulvaney, Bud Light has been embroiled in controversy as more conservative consumers started boycotting the once top-selling US brewer, forcing it to initiate hiring freezes and layoffs.

However, the worst consequence of the Mulvaney fiasco is that it triggered a steep plunge in Bud Light sales, which have dropped by over 25% since then. 

In the month that ended on July 15, the company’s US sales fell 26.5%, while Modelo Especial’s climbed 13.5%. The significant sales impact pushed Bud Light’s market share to 6.8% in that period, while Modelo held an 8.7% share, according to the reports. 

What does this mean for Bud Light stock?

At the time of publication, US-listed shares of Anheuser-Busch InBev were down 2.65% at $57.30. 

BUD 1-day stock price chart. Source: TradingView

Over the past week, the stock lost 1.44% of its value, while gaining 1.5% on a monthly basis. 

Year-to-date, BUD is down 5%, with the bulk of its declines coming in May, right after the Mulvaney fiasco. 

Despite recent attempts to mitigate risks, Bud Light’s stock remains vulnerable due to ongoing sales decline and lingering customer apprehension. 

While the company strives to rebuild trust, potential uncertainties continue to pose challenges to its future stock market performance. Having said that, investors should exercise caution as Bud Light navigates through this critical period.

Buy stocks now with Interactive Brokers – the most advanced investment platform

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

Related posts