Once dominating the beer market in the United States, Bud Light’s fortunes took a dramatic turn when a marketing executive’s decision backfired, leading to a severe sales decline and subsequent layoffs.
Anheuser-Busch to lay off hundreds of US corporate workers after Bud Light campaign disaster https://t.co/o0BAZ1E8aj pic.twitter.com/PiOKbs50UA
— New York Post (@nypost) July 27, 2023
The executive, disapproving of Bud Light’s “fratty” advertisements, made a controversial choice to produce a special can commemorating drag queen Dylan Mulvaney’s 365th day of “girlhood.” The ill-fated move featured Mulvaney dressed as the iconic Audrey Hepburn, holding a can of Bud Light.
However, instead of resonating positively with consumers, the marketing campaign turned the brand toxic, sending sales into a steep downward spiral. As the repercussions of the marketing misstep reverberated through the company, it has been reported that Anheuser-Busch is now implementing a layoff of approximately 350 employees.
The timing of these job cuts raises questions — were they already planned beforehand, or is Mulvaney to blame? Recent Nielsen IQ data revealed a sharp drop of nearly 28% in Bud Light sales during the last week of June compared to the same period the previous year.
Such a significant decline raised concerns within the company and among investors. Anheuser-Busch’s CEO, Brendan Whitworth, tried to assure the public that the company remains committed to supporting the LGBTQ community.
However, Mulvaney disclosed in June that he never received any communication from the company after the backlash over the ill-conceived marketing campaign. In a TikTok video, Mulvaney expressed his disappointment, stating, “For a company to hire a trans person and then not publicly stand by them is worse, in my opinion, than not hiring a trans person at all.”
The incident sparked a heated debate on social media, with some supporting the company’s stance while others condemned it for not taking responsibility. The fallout from the Mulvaney incident has undoubtedly left a lasting impact on both the company’s reputation and financial standing.
Only time will tell how Anheuser-Busch plans to address the challenges ahead and rebuild consumer trust and bounce back, or if the 171 year old company is forever doomed.
