In light of recent developments, Bud Light, once the leading beer brand in America, is facing a critical challenge of regaining its customer base within a limited timeframe. Anson Frericks, a former executive who held the position of President of Sales and Distribution at Anheuser-Busch InBev, expressed concerns about the future of Bud Light in an interview with the Daily Mail.
Frericks raised apprehensions about the brand’s decision to collaborate with transgender social media influencer Dylan Mulvaney, suggesting that this partnership could potentially lead to a long-lasting decline in Bud Light’s market presence. As retailers approach September, they will likely rely on sales data from previous months to determine the allocation of limited shelf space.
Frericks warned that the ongoing boycott of Bud Light could result in reduced availability of the brand compared to others that are experiencing higher demand. He proposed that rival brands like Coors Light and Yuengling might emerge as more prominent options on store shelves during the annual product “reset.”
To ensure Bud Light’s sustained success, it is imperative for the brand to formulate an effective strategy that addresses the current challenges and wins back the trust and loyalty of its consumers. Failure to do so could result in lasting market share losses for Bud Light.
Frericks stressed the potential advantage that brands like Coors Light and Yuengling may have in helping retailers increase beer sales.
According to Frericks, “These brands have a higher likelihood of long-term success because they enjoy more shelf space, larger inventory, ample back-stock, and greater availability for consumers.”
The former executive’s concerns come as recent data suggests that Modelo Especial, a Mexican beer, is on track to surpass Bud Light as the world’s favorite beer this year.
While Modelo’s success comes at the expense of Bud Light, the parent company that owns both brands globally (Constellation Brands controls Modelo in the U.S. market) is still facing challenges.
AB InBev, the parent company, has reportedly lost $27 billion in market value as of last week, as reported by the New York Post.
Despite these significant losses, Bud Light has not publicly unveiled a strategy to win back former customers. The brand has chosen to disregard the controversy surrounding it as the losses continue to mount.
Bud Light’s Twitter account has posted only one tweet since April 1, which was on the day when Mulvaney shared a picture of himself featured on a can of the beer.
The CEO of AB InBev, Brendan Whitworth, has chosen not to publicly address the controversy surrounding the brand’s recent actions.
Although he issued a generic statement acknowledging the consumer pushback two weeks into the boycott, it failed to resonate with former Bud Light drinkers who had already moved on to other brands.
Whitworth stated on April 14, “We never intended to be part of a discussion that divides people. We are in the business of bringing people together over a beer.” He also expressed his deep care for the country, the company, and its partners, emphasizing his commitment to listening and learning from customers and distributors during his travels across America.
However, this statement did not succeed in enticing former customers back to Bud Light.
If these consumers do not return within the next 90 days, Bud Light may face challenges in terms of availability in grocery and convenience stores, making it harder to find or potentially becoming a second-tier brand compared to its competitors who enjoy premium product placement and larger inventory.
Frericks emphasized the urgency for Anheuser-Busch to develop a strategy and make a statement about their customer base in order to regain lost customers in June and July. According to him, waiting until August or September would be too late.
Was my favourite but I will not condone a transgender ad. The gays got the pride cans but trans are going way to far. I am a women and I will not loose my battle against these men pushing there gender! No never!!😡😡😡 All my friends have given Bud light up too. So sad you may not get it back because you dared to change the very best . Why????
Want to save BL? Publicly fire anyone that had something to do with that decision. Print an apology, then you might stand a chance.
CEO needs to pay more attention to his job……obviously not only no brains but no balls as well!