Bud Light garnered national attention when it faced a significant boycott due to its controversial partnership with transgender influencer Dylan Mulvaney. Now, Doritos, a subsidiary of PepsiCo (NASDAQ: PEP), appears to be on the verge of experiencing a similar backlash.
Specifically, Doritos Spain ended their association with transgender influencer Iván González Ranedo, known by the stage name Samantha Hudson, following a wave of criticism. This occurred after the company faced significant backlash for sharing a video on Instagram featuring Hudson, who is accused of controversial statements on family and sexual abuse.
Has Doritos prevented a boycott, or are we witnessing the unfolding of another Bud Light scenario?
Picks for you
How much did Bud Light suffer?
Bud Light attracted national attention when a costly boycott ensued following its contentious collaboration with transgender influencer Dylan Mulvaney.
Despite surpassing sales estimates in its fourth-quarter and full-year 2023 results released on February 29, Anheuser-Busch InBev continues to face challenges in the U.S. due to the boycott against its Bud Light brand, nearly a year after the controversial partnership with Mulvaney.
A-B reported a 7.8% increase in revenue last fiscal year, reaching an all-time high, but acknowledged that the performance of our U.S. business constrained its “full growth potential.”
Target as another example
The Target (NYSE: TGT) boycott started in May 2023, sparking a major controversy as consumers decided to cut ties with the retailer in protest. In the second quarter of 2023, Target experienced a 5.4% decrease in in-store sales and a more significant drop of 10.9% in online sales. These declines are likely a direct result of the boycott against Target.
It might be too soon to determine if the Doritos boycott will gain traction and attract attention. There haven’t been any indications of a negative impact on its parent company stock, PEP, which opened trading on March 6 with a gain of 0.08%.
Buy stocks now with eToro – trusted and 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.
