We are now several months into the Bud Light boycott and things don’t seem to be improving at all for the company. April 1st was the day that Dylan Mulvaney posted the pictures and videos of their face on a Bud Light can.
I can tell you one thing, after losing $27 billion in market cap since then, Budweiser sure wishes that it was all just an April Fools joke.
In fact, a former executive Anson Frericks who served as the president of sales and distribution at Budweiser’s parent company Anheuser-Busch InBev until last year just had a pretty shocking thing to say about the brand and what might be happening soon. They have precious little time to turn things around before a catastrophic event happens.
Check it out:
“Anheuser-Bush needs to figure out a strategy, it needs to make a statement about who their customers are and who they’re going to serve now, and try and regain those customers now in June and July, because by time it’s August, September, it’s too late,” he said.
Basically what happens is that every quarter retailers rely on previous months sales data to allocate shelf space to different beers. If the boycott continues it could lead to a shift in that shelf space which is extremely difficult to recover.
Bud Light is at extreme risk of having its shelf space taken over by the rising brands Coors Light and Yuengling which could become more permanent fixtures on the shelves after the annual product “reset.”
This would be devastating to the brand’s long-term health.
“Those brands will have a better likelihood to succeed long term because they have more shelf space, they have more inventory, they have more back-stock, and they have more availability for consumers.”
Tick, tok Budweiser. In years past these boycotts that would happen on either the right or the left would fizzle out within a few days and people would continue their normal purchasing behavior leading to no real change.
For the first time however, this continued boycott has done very real damage to this brand and recovery may not be possible. Modelo has been quickly rising and is now on track to become the most popular beer in the USA.
Move over Bud Light, there’s a new king in town.
Source: The Western Journal