The brand is currently facing criticism over an advertisement featuring a transgender star on social media. At the same time, retail sales of Bud Light, the top beer in the charts, have taken a dive after more than 20 years.
“‘This is like navigating uncharted waters for a brand, with sharp declines of this magnitude coming in just seven weeks,” stated Dave Williams, the vice-president of analytics at Bump Williams Consulting, a firm that specializes in the alcoholic beverage industry.
Showcasing a transgender advocate, certain politicians and celebrities in the United States responded with fury to the beer label. The label has encountered adverse feedback in the United States ever since an initial April video in which transgender TikTok sensation Dylan Mulvaney endorsed the label and proudly displayed customized collectible cans showcasing her visage.
The data is not accessible to the public. Williams stated that Bud Light’s decrease in sales cannot be directly attributed to a solitary Instagram video featuring a transgender representative. Bud Light has been experiencing a decline in sales since April, while other brands have been gaining popularity.
Modelo Especial, a Mexican lager, surpassed Bud Light as the leading brand. Williams’s firm’s analysis of Nielsen IQ data revealed that Bud Light’s dollar sales at U.S. Retail stores had declined by over 24% in the week ending June 3, in comparison to the previous year.
Williams stated, “I am aware of the correlation between the recent acceleration in declining sales and the backlash we witnessed online, where we observed a certain connection.”
Other industry watchers and Williams characterize the fall in sales as likely tied to a conservative backlash and fallout over the inclusion of LGBTQ groups in advertising, even though companies have leveraged marketing in gender-diverse and bisexual, lesbian, gay communities.
According to a marketer from Toronto, Bud Light and its parent company AB InBev might have been taken by surprise by the negative reaction and subsequent decline in sales.
Audiences, whether LGBTQ or heterosexual, did not seem to have a decisive response and there was a “lukewarm” reaction online after Light’s Bud spokesperson, who is transgender, faced backlash. Knox Scott, the founder of Pride, a marketing and advertising group in the industry, explained that Bud Light has always supported and stood by queer consumers.
Knox stated, “They were not prepared to deal with any potential backlash because they were not ready, and it was indicated that they were not prepared.”
The company has neither directly addressed nor apologized for the video, but one of the accountable executives has opted for a temporary absence, and the company has released a statement stating “our intention was never to contribute to a conversation that creates division among individuals.”
LGBTQ supporters at the U.S. Headquartered Human Rights Campaign criticized the company’s responses as “shameful.”
According to marketers like Knox, Bud Light should have adopted a stronger position once the negative response began.
Bud Light, in a restrained position, might have angered a different segment of its clientele, including some notable individuals engaging in online videos where they shoot Bud Light with guns, while another segment of its clientele expressed their frustration.
“He informed CBC News that, in this particular instance, the heterosexual population, individuals who belong to the broader overall and in this particular instance, heterosexual population, and those who are part of that [varied] population, you ultimately irritate both factions … Otherwise you intensify your efforts if there’s a negative reaction, you must be prepared to do it when you communicate with any varied population.”
Beer companies ‘pouring rainbows’ for years
Individuals who identify as gay, lesbian, bisexual, and gender-nonconforming are prominently showcased in advertisements, and Pride celebrations throughout North America receive financial support from breweries that have long been promoting their beers directly to LGBTQ communities.
Syrus Marcus Ware, an instructor specializing in gender and visual culture, believes that this reflects the natural integration of LGBTQ individuals within both the community and the economy.
“We, as a company, recognize that you exist as part of our community and we want some of your dollars. Hey, hold on, says Ware, an associate professor at McMaster University, who believes that having a beer company that directly markets to the transgender and queer population is important.”
According to Ware, advertisements that do not include gender- or sexually diverse communities are exclusive, rather than being a marketing catch-all.
Ware stated, “People who are trans and queer are not neutral, but rather it is problematic to say that being straight is essentially neutral and that is the problem with the idea of neutrality.”
As members of this community and ecosystem, we all play a role in shaping it. This includes individuals who identify as straight, queer, and trans. Let’s work together to transform and redefine our perspectives and priorities, focusing on what we truly need.
– Syrus Marcus Ware, McMaster University
Knox is a page similar to Pay off from a financial perspective, and it isn’t new to marketing to diverse sexually and gender communities.
Knox stated, “Look, for over 10 years, beer has been queer, beer has been queer because dollars from the queer community have been poured out from cans and pumps, spreading rainbows in bars and supermarkets across the world.”
What’s next for Bud Light?
Labatt Breweries of Canada, which provided responses to CBC News regarding future strategies, affirmed in a written statement that it continues to be dedicated to collaborations “established over numerous years” with various communities, including LGBTQ organizations. Labatt Breweries of Canada is also owned by the parent company of Bud Light.
“We still support local Pride events as we have for years,” stated the company.
With the brand’s magnitude and influence, Bud Light might have the potential to bounce back if the controversy subsides, as industry experts such as Dave Williams highlight that Bud Light has maintained its leading position for several years despite recent declining sales.
Bud Light continues to hold the top position so far this year, with over half of 2023 remaining.
Williams stated that the ongoing conflict regarding the inclusion of transgender individuals in a beer advertisement is detrimental to the industry, mentioning, “They hold a prominent position for a valid reason, correct? They possess significant influence.”
He stated, “Since beer, in my opinion, is meant to be a communal drink, I believe it is not ideal for the overall beer experience.”
Ware is concerned that the Bud Light controversy will have a negative impact on the future of inclusive representation.
He expressed, “That’s worrying to me. Certain organizations might be somewhat hesitant to publicly endorse queer and trans communities moving ahead.”
Nevertheless, Knox mentioned that the branding of the industry might not completely distance itself from rainbows.
Molson stated that our companies in the spirits and beer industry have been supporting Pride for many years, and will continue to do so for many more decades. This example is not only limited to the United States and Canada, but it also ran an advertisement featuring a drag queen as part of the Stanley Cup playoffs.
Knox Bud Light, the speculated company, will find a way to keep all happy consumers when it comes to marketing Pride. “It means that they will do the basics, like occasional drag queens and glitter rainbows.”