Anheuser-Busch InBev said it can concentrate its marketing on sporting and music events because it tries to reverse falling sales of its flagship beer Bud Light within the face of conservative backlash within the U.S.
The brewing giant revealed a part of its plan to revitalize the brand Tuesday after it reported third-quarter earnings that beat expectations. The corporate’s revenue fell nearly 14% from July to September within the U.S., its largest market, as Bud Light sales sank.
Bud Light sales began falling in April after a conservative boycott of the brewer’s partnership with transgender influencer Dylan Mulvaney. At the peak of the backlash, Modelo Especial dethroned Bud Light as the best-selling beer within the U.S.
Bud Light sales are still lagging, because the brand dropped 29% within the 4 weeks ending Oct. 21 in comparison with same period a 12 months ago, in response to Nielsen data compiled by research firm Bump Williams Consulting. Sales have fallen nearly 19% this 12 months, in response to the firm. CNBC reached out to the corporate Anheuser-Busch for comment.
Anheuser-Busch is now attempting to turn across the brand’s fortunes by marketing Bud Light through platforms it considers uncontroversial.
During a conference call with investors Tuesday, CEO Michel Doukeris said the corporate stays confident in Bud Light and “significantly increased” investment in it over the summer. Moving forward, the corporate plans to advertise Bud Light at events like football games and live shows, he said.
The beer is specializing in outlets equivalent to the NFL, college football, the country music festival Stagecoach and Folds of Honor, a nonprofit organization which provides scholarships to military families.
Earlier this month, Bud Light again became the official beer sponsor for the Ultimate Fighting Championship with a six-year marketing partnership. The sponsorship deal is “well into the nine figures,” and the biggest within the mixed martial arts promotion’s history, CNBC previously reported.
Furthermore, Doukeris said the corporate has modified its marketing structure, and that he intends to steer the brand away from contentious debates.
“While beer will at all times be on the table when essential topics are debated, the beer itself shouldn’t be the main focus of the controversy,” he said.
Doukeris also appeared to further distance the corporate from Mulvaney, who has criticized the corporate for failing to defend her amid the boycott. Additional backlash about how the corporate responded to the boycott contributed to lower sales earlier this 12 months.
“This was the results of one campaign,” he said of the Mulvaney partnership, which featured her face on a Bud Light can. “It was not made for production or sales to general public. It was one post, not a proper campaign or commercial.”
He added that the corporate has been attempting to support the delivery drivers, sales representatives, wholesalers, and servers whom the “situation has impacted.”
Despite weak sales within the U.S., Anheuser-Busch beat Wall Street’s expectations for the third quarter. Revenue rose 5% from the prior-year period to $15.57 billion, because of an industry-wide trend of upper pricing.
