In April 2023, Bud Light partnered with transgender influencer Dylan Mulvaney for a social media promotion, aiming to appeal to younger consumers. This collaboration, however, sparked significant backlash from conservative groups, leading to widespread boycotts. The immediate impact was a sharp decline in sales, with reports indicating a drop between 11% and 26% in the weeks following the campaign.

Despite efforts to recover, including strategic advertising campaigns and partnerships with prominent figures, Bud Light’s market position continued to erode. By July 2024, the brand had fallen to the third spot among U.S. beers, overtaken by competitors like Modelo Especial.

Analysts suggest that the decline was not solely due to the Mulvaney controversy but also stemmed from a series of marketing missteps that alienated Bud Light’s core consumer base. The brand’s attempt to shift its image through DEI (Diversity, Equity, and Inclusion) initiatives was perceived as inauthentic by many loyal customers.

In response, Bud Light has attempted to realign its marketing strategy with its traditional image. A notable example is the August 2024 advertisement featuring comedian Shane Gillis, which marked a return to the brand’s “fratty” and fun ethos. This move was seen as an acknowledgment of the failure of previous DEI-focused campaigns and an effort to reconnect with the brand’s original audience.

Despite these efforts, the brand has yet to fully recover from the controversy. Former Anheuser-Busch executive Anson Frericks noted that Bud Light’s sales remain significantly lower than pre-controversy levels, indicating a lasting impact on the brand’s market position.

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“They haven’t at all [recovered],” former Anheuser-Busch President of Operations Anson Frericks said Tuesday during an interview on FOX Business’ “Varney & Co.”

The Bud Light case serves as a cautionary tale for brands navigating the complex landscape of social issues and consumer expectations. It highlights the importance of understanding and aligning with the core values of a brand’s primary consumer base to maintain loyalty and market share.