Bud Light sales have plunged an astonishing 17% after controversial collaboration, report says — 2 stocks that could gain from the big drop in business

A beer boycott may be affecting the beverage business.

A fan holds up a can of Bud Light during New England Patriots game at FedExField on October 6, 2019. in Landover, Maryland.

Patrick McDermott./ Getty Images

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By Vishesh Raisinghani Apr. 25, 2023

It can be difficult to measure the impact of a marketing campaign, however, Anheuser-Busch’s latest ads featuring transgender influence Dylan Mulvaney seem to have had an impact on sales of its flagship Bud Light beer.

The brand’s controversial marketing collaboration, which ignited fierce reaction on social media, has apparently led to a dip in Bud Light store sales by an astonishing 17%, according to industry research.

Bud Light’s partnership with Mulvaney, who has 10.8 million followers on TikTok, was meant to appeal to a young, broad audience of drinkers. But it also drew a tremendous amount of backlash based on the influencer’s gender identity. This led some fans of the beer to start a boycott to show their dissatisfaction with the marketing decision.

The boycott may have been successful, based on recent data from NielsenIQ and Bump Williams Consulting cited by the Wall Street Journal. Bud Light store sales dipped 17% in the week ending April 15 compared to the same period last year. The paper also reports two executives who oversaw the collaboration have been placed on leave.

If the boycott continues, the brand’s position as the best-selling beer in the country could be in jeopardy. Rivals are already stepping in and snapping up market share.

Here are some of the rival beer brands that investors can bet on before the peak summer season commences.

Coors Light & Miller Light

Coors Light, the second-most popular beer brand in America, appears to have picked up market share from leading giant Bud Light. The data from NielsenIQ and Bump Williams Consulting published by the Wall Street Journal also revealed Coors Light sales increased 17.6% in the week ending April 15.

Miller Lite saw a boost in sales, also 17.6%, in the same week compared to last year.

Both brands are owned by the same company: Molson Coors Beverage Co. The Colorado-based brewing giant is listed on the New York Stock Exchange under the ticker “TAP.” The stock is up 14.94% over the past month as the Bud Light debacle played out.

Where should $100k+ portfolio's invest in?

Michelob Ultra

Bud Light, Coors Light and Miller Lite dominate the market for light beer. However, smaller brands like Michelob Ultra also seem to be getting a boost from the Bud Light controversy. The brand saw dollar volumes rise 0.4% in the week ended April 15, according to industry news source Brewbound. Market share of the super premium segment rose 2.2% that same week.

Michelob Ultra, however, is owned by Anheuser-Busch. Some investors may see this as an opportunity to buy the beaten-down stock. Despite its recent dip, Anheuser-Busch Inbev stock (NYSE:BUD) is up 4.26% over the past month. It’s trading at just 22.55 times earnings per share and offers a 1.26% dividend yield.

Only 28% of the company’s sales are generated in North America. That means it’s better insulated from this controversy than most boycotters believe. This could be the perfect opportunity for a contrarian investor.

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About the Author

Vishesh Raisinghani

Freelance Writer

Vishesh Raisinghani is a freelance contributor at MoneyWise. He has been writing about financial markets and economics since 2014 - having covered family offices, private equity, real estate, cryptocurrencies, and tech stocks over that period. His work has appeared in Seeking Alpha, Motley Fool Canada, Motley Fool UK, Mergers & Acquisitions, National Post, Financial Post, and Yahoo Canada.

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