Brewer Faces Bumpy Road to Recovery after Backlash from Controversial Campaign

Anheuser-Busch Inbev has met its quarterly revenue forecasts but has not fully recovered from the backlash it experienced last year. Despite selling slightly more beer than anticipated, the company’s volume declined by 0.6%, and its revenue figures were boosted by sales of spirits-based drinks in cans. The results are historically low due to the lasting effects of a customer boycott.

Last year, AB InBev sparked controversy when it decided to work with transgender influencer Dylan Mulvaney. The company sent her a personalized Bud Light can to celebrate her transition, leading to backlash from right-wing commentators who accused the brand of pushing a liberal agenda. Left-wing voices criticized the brewer for failing to support Mulvaney. The company’s Europe CEO has indicated that they will “stay in our lane” following backlash to the campaign seeking to promote diversity. Wednesday’s quarterly results showed an 11.1% drop in sales of AB InBev’s own beer brands in North America, which the firm attributed to Bud Light’s performance.

Despite the backlash, it is believed that the effects of the boycott will begin to fade. AB InBev’s CEO Michel Doukeris stated that he was encouraged by the company’s first quarter results and attributed it to the strength of the beer category, diversified global footprint, and continued momentum of mega brands. Lacklustre improvements in the Asia-Pacific region and North America were offset by stronger growth in countries such as Mexico, Brazil, and South Africa. Normalised EBITDA increased by 5.4% to almost $5 billion (€4.65 billion) and the company expects full-year EBITDA to grow in line with its medium-term outlook of between 4% and 8%.