Controversy surrounding Bud Light has impacted sales and could put further pressure on shares of its parent company.
The beer brand, owned by Anheuser-Busch InBev BUD, recently unveiled a new advertising campaign this week that it hopes can turn things around.
What Happened: Certain celebrities and some social media users called for a boycott of Bud Light after the brand partnered with trans activist Dylan Mulvaney.
Now, Bud Light hopes to win back those fans and gain new ones with what it’s calling its "biggest summer campaign ever."
The new "Easy to Summer" commercial features the song “Good Times” by Chic and shows off many summer activities.
The company is also launching a summer music tour that includes singer Kane Brown, country music group Midland and Megan Moroney. The new campaign also includes a Bud Light Backyard Tour that will hit multiple states this summer. Additional artists named Thursday include Tyler Braden and Seaforth.
Bud Light is also partnering with several National Football League (NFL) players, including Travis Kelce (Kansas City Chiefs), George Kittle (San Francisco 49ers) and Dak Prescott (Dallas Cowboys). The trio will be used in new Bud Light content and also part of giveaways for signed memorabilia to fans.
Part of the new advertising campaign, which kicked off with the new commercial this week, includes the chance to win tickets, offering rebates over the July 4 weekend and covering the beer tab at bars for winners.
Bud Light will also give away $10,000 weekly to lucky winners.
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Why It’s Important: The new ad campaign comes as Bud Light was recently dethroned as the top-selling beer in the U.S. — a position it has held since 2021. Bud Light ranked second in the month of May with 7.3% market share, losing out to Modelo Especial.
Sales of Bud Light fell 23.9% in the month of May according to reports, with and indication that sales were continuing to fall in June.
Republican presidential hopeful Ron DeSantis recently took on Bud Light during a campaign stop in Nevada.
“Just so you know, I’ll serve you anything except Bud Light,” DeSantis said while playing host bartender duties.
The inclusion of several country music stars may be a small part to win back fans. Kid Rock, Travis Tritt and other country artists have spoken out against Bud Light. Country legend Garth Brooks came to the defense of Bud Light and was criticized by a portion of his fan base.
Variety reports that the national media investment behind the Bud Light brand has more than tripled.
“We want to show up in all relevant occasions in summer — backyard barbecues, stadiums and sports venues,” Bud Light Vice President Todd Allen said. “That’s what counts and that’s what we are focused on.”
Reports say Bud Light spent $60.1 million on traditional media advertising in 2022.
BUD Price Action: Shares of Anheuser-Busch InBev are down 4.1% year-to-date in 2023.
Peer companies in the beer company like Constellation Brands Inc STZ and Molson Coors Beverage Company TAP are up 6.4% and 34.0% respectively year-to-date in 2023.
As previously indicated, both Constellation and Molson Coors could be gaining from market share losses by Bud Light and other AB InBev owned brands.
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Image courtesy of Bud Light
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