(NewsNation) — Anheuser-Busch, the parent company of Bud Light, is facing a significant backlash after hiring transgender influencer Dylan Mulvaney to promote their beer.
During an earnings call, CEO Michelle deCaires attempted to explain the decision, stating that it was only one post and not a formal campaign or advertisement.
However, since the post was made, sales have dropped by more than 20%.
Customers have expressed their displeasure over the brand’s association with Mulvaney, with many stating that the brand no longer represents them.
The company has responded by offering a free case of Bud Light to every employee of the Anheuser-Busch wholesaler, along with a $500 bonus for delivery drivers, sales representatives and independent distributors.
They also plan to boost Bud Light’s marketing spending and focus on sports, music and connecting people.
Anson Frericks, former president of Anheuser-Busch sales and distribution and president of Strive Asset Management, commented during an appearance on “On Balance With Leland Vittert” that the brand should have apologized for its mistake and that the company needs to be clear about what Bud Light stands for and what it does not stand for.
“Instead of doubling down and tripling down on this message that it was just one can and this is sort of a tempest in a pint glass, so to speak, come out and just say, ‘You know what, guys, we made a mistake,'” Frericks said. “Because Bud Light is a brand (that) is supposed to be apolitical. It’s enjoyed equally by Democrats and Republicans. They should have never gotten involved in a divisive social campaign.”
The CEO, however, has stated that it is too early to assess the impact of the backlash, and the company has not issued an apology.
The situation has caused a significant impact on the company’s stock and its biggest rival is up 25%.
“I don’t know what they’re waiting for. Because the brand is down 26% in the latest week,” Frericks said. “Very problematic, you have a lot of consumers that have said, ‘I’m not coming back to the brand.'”
One beer distributor anonymously commented that they have lost all their country music bars due to the controversy, and now they will lose all their gay bars if the brand apologizes.
The controversy has highlighted the importance of customers feeling represented by the brands they purchase.
The company must figure out how to move beyond the politicized nature of Bud Light.
“Bud Light always stood for good things that usually brought us together,” Frericks said. “It was sports, it was backyard barbecues. And now all of a sudden, it is part of the debate. It is part of the discussion, which it never should have been in the first place. And that’s where, unfortunately … the company is going to have to figure out how to move beyond the politicized nature of Bud Light.”