Since they endorsed the transgender influencer Dylan Mulvaney we’ve been detailing the massive implosion of Bud Light, and things just seem to keep getting worse for them.
I reported that Costco had allegedly put the “Death Star”, on some Bud Light products, in some of its stores. This means they won’t be stocking them in the future.
Distributors then delivered a fatal blow to the business. They’ve given up on the brand because they don’t believe that consumers will return.
In addition to all of that, in the second quarter, they lost almost $400 billion and had a loss of nearly 30% in sales. A total of 360 employees are being laid off in their corporate offices in America due to the current problems. It’s a direct hit on the executives.
Bud Light has suffered another blow.
According to reports, stores are clearing out their shelves to make way for other brands. Bud Light sales may “never completely recover the ground that they’ve lost” to competitors.
The Wall Street Journal reported that rival Molson Coors Beverage is the biggest beneficiary of Bud Light’s troubles, as sales continue to “crater”.
There are some reasons to think that Bud Light’s sales could be permanently affected. Molson Coors CEO Gavin Hattersley told analysts on a conference call that retailers have already reallocated space to other brands when they reset shelves in spring. More resets will be done in the fall, according to The Journal. The Journal reported that “in bars and other on-premises channels, the company increased its tap handles by more than 12,000 in the third quarter.”
The Journal continued to report that Molson Coors is also planning to spend an additional $100,000,000 on marketing in the second half to maintain this sales momentum. Hattersley stated that “our job is to maintain the gains we have.”
This is a big blow, similar to what Costco did. Such a move would ensure that the brand wouldn’t die out quickly.
It’s also a problem that people have discovered and tried other beers because of the boycott. There are so many options that it’s easy to boycott Bud Light. Coors is not shy to pick up on this and has released an ad that reflects their understanding. Coors is gaining a lot from Bud Light’s mistakes. Modelo Especial, which has been the top seller for the last two months, is expected to surpass Bud Light in August.
They still act as if they don’t understand. When they released their earnings reports on Thursday, the company said that despite the massive losses, Americans had a positive view of the brand. I don’t understand how they conducted the survey. They only have to open their eyes and see what’s happened to the brand in April to realize that this isn’t accurate. This cluelessness left them on the verge of brand death.