Beer sales are an essential aspect of the alcoholic beverage industry, and work as a beer sales representative involves providing products to stores and restaurants.
Bud Light retail sales have seen a drastic decline since AB InBev announced their partnership with transgender influencer Dylan Mulvaney, prompting conservative backlash and an official boycott from LGBTQ advocates. Now, the company is working to appease distributors and rebuild its brand image.
What Happened Bud Light beer ?
After Dylan Mulvaney, a transgender activist and influencer, posted a Bud Light-sponsored TikTok video in April, conservative social media figures, politicians and celebrities used her as an example of what Anheuser-Busch was doing wrong by becoming too “woke.” As a result of this outrage — which included calls to boycott Bud Light — Anheuser-Busch decided to place two marketing executives on administrative leave in response.
Littleton contends that Anheuser-Busch underestimated the depth of division within its consumer base. They made the mistaken assumption they could appease liberals while appearing progressive while not alienating right-wingers who weren’t likely to purchase their product anyway.
Retail sales data has shown how ineffective Bud Light’s strategy has been, and now that summer drinking season has unofficially kicked off last weekend it only stands to worsen for Bud Light and its local distributors.
What’s Next?
Bud Light may have taken a hit from its influencer partnership controversy, as well as changes in consumer habits affecting consumption patterns and sales forecasting services like Beer Marketer’s Insights that predict lower beer sales than they’ve seen since 1999. According to Beer Marketer’s Insights’ prediction, Bud Light sales may decline even further this year than predicted by Beer Marketer’s Insights.
Although Bud Light’s parent company has taken steps to mitigate damage by placing the marketing executive overseeing Mulvaney on leave, her efforts may still not be sufficient; according to data from Bump Williams Consulting and Nielsen IQ, Bud Light still dominates its market segment.
However, as consumer enthusiasm wanes over time due to media scrutiny and boycott pressures, other breweries could gain the chance to siphon market share away from Bud Light – Miller Lite has managed to maintain second place status even as Bud Light sales decline.
What Can Beer Companies Do?
Beer companies looking to boost sales should invest in digital marketing campaigns such as social media marketing, SEO optimization and content promotion via social media channels like Instagram. Furthermore, email marketing allows them to connect with their target market directly while building long-term customer relationships.
Companies can also sponsor events to build brand recognition. This may involve sponsorship of sporting events or those focused on food and drink pairing. Furthermore, partnerships may be formed with organizations who share similar values and audiences.
Beer companies should offer their customers a selection of different beers in order to satisfy different palates, while increasing distribution channels to reach more consumers – which may involve direct distribution to retailers, or working with wholesalers to have greater control over product placement and pricing. They must make sure their practices abide with local and state laws or risk losing retail shelf space permanently.
How Can Beer Companies Sell Beer?
Current state distribution models utilize a three-tier distribution model. Under this system, breweries cannot act as wholesalers or retailers themselves. Wholesalers may own bars and restaurants while only 13 states allow direct-to-consumer (DtC) sales from brewery to consumers (also known as DtC sales).
Littleton suggested that Bud Light might regain its position if a new strategy can be devised around “being more authentic,” but noted the company failed to uphold their duty of care during this crisis by quickly issuing an apology to Mulvaney after controversy flared, seen by conservatives as an effort at appeasing them.
Littleton cautioned brands that offending large, loyal segments of its audience is bound to cost them dearly in revenue and brand perception, not to mention potential derivative or class action lawsuits filed against companies as time goes on. As evidenced by AB InBev’s experience, this lesson may well apply to brands as a whole: any time an offending brand offends such an audience, its revenue and brand perception take an enormous hit, potentially even leading to lawsuits against them as time progresses.
