AB InBev CEO points to Bud Light consumer survey even as U.S. sales continue to struggle

While the Bud Light social media fiasco continued to depress sales and profits in the U.S., Anheuser-Busch In Bev posted better-than-expected second-quarter worldwide profit on strengths in its other operating regions. Bud Light sales collapsed in April after transgender influencer Dylan Mulvaney appeared in a promotional video for the brand, leading to several boycotts of the brand in the U.S. But AB InBev CEO Michel Doukeris, during a conference call discussing the results, said that most U.S. consumers had no opinion on the controversy leading to Bud Light’s sales loss. He said the company reached out to 17,000 consumers since April and found most held favorable views about Bud Light, with 80% either favorable or neutral. (That would indicate the remaining 20% were heavy Bud Light drinkers, as the latest sales figures show sales declines near 30%, according to Beer Marketer’s Insights, citing Bump Williams Consulting.) “Regardless of favorability, our consumers across all sentiment groups have three points of feedback in common,” Doukeris added. “One, they want to enjoy their beer without a debate. Two, they want Bud Light to focus on beer. Three, they want Bud Light to concentrate on the platforms that all consumers love, such as NFL, [veteran charity] Folds of Honor and music,” mentioning areas of recent Bud Light advertising. Also read: Molson Coors to increase marketing spend Ad Age Small Agency Awards See all of the 2023 winners Click here AB InBev’s U.S. revenue declined by 10.5% year over year in the second quarter. Sales volume to wholesalers was down by 15%, and sales volume to retailers fell by 14%, primarily due to the volume decline of Bud Light, which has been the focus of a stubborn consumer boycott in the U.S. since April. The company said that U.S. earnings before interest, taxes, depreciation and amortization (EBITDA) declined by 28.2% during the period. It said two-thirds of the decrease was attributable to market share performance and the remainder from productivity losses, increased sales and marketing investments, and support measures for wholesalers affected by the Bud Light sales dive. The U.S. results were “undoubtedly” the worst at the company since a 1976 strike, when Anheuser-Busch shipments were down 17.5% for the year, according to trade publication Beer Marketer’s Insights. But the brewer's U.S. struggles were offset by strong performance in regions like Brazil, where EBITDA was up by 25.6%. Worldwide revenue grew by 7.2% as price hikes helped to overcome a 1.4% decline in volume. Both revenue and profits exceeded analyst expectations. While Bud Light sales continue to struggle, Doukeris said the company has been able to stabilize its market share since the end of April, adding he saw “signals of improvement when you look across certain channels and states.” The earnings report comes days after rival Molson Coors posted robust sales results for its Coors Light and Miller Lite brands as they absorb volume from Bud Light. That company also touted a meaningful increase in tap handles in bars, and said it would increase marketing spend by $100 million in the second half of the year to capitalize on share gains its beer brands have made against Bud Light. Doukeris said AB InBev has maintained 98% of its taps this year and said slow-moving brands are being cycled out. “We see bars [and] restaurants optimizing for high turnover. I think that’s the best way to explain what’s happening. And you see brands that have higher sales and turnover getting more taps,” he said.

AB InBev CEO points to Bud Light consumer survey even as U.S. sales continue to struggle

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