The boycott of Bud Light by consumers over a promotion with social media influencer Dylan Mulvaney, a transgender woman, continues to impact American sales.
Anheuser-Busch InBev has reported a 9.1 percent drop in revenue in the United States for the first quarter, affecting the group’s revenues, which grew by 2.6 percent to $14.5 billion.
The US sales to retailers were down by 13.7%, mostly due to the decline in Bud Light volumes. The boycott was a reaction to a Mulvaney promotion and knocked Bud Light off the top spot of the most popular US beer.
According to Jefferies analysts, a lower-than expected drop in volume could indicate that the backlash against Mulvaney’s election campaign is easing. They said AB InBev can hope for “potential recovery greenshoots in North America.”
Michel Doukeris is the CEO of AB InBev. He said: “The strength and diversity of the beer category combined with our global footprint, as well as the momentum of our Megabrands, has delivered another quarter’s growth in both top-line revenue and bottom-line revenue.”
The increase in group revenue and profit during the first quarter was driven largely by higher prices, with volume sold of beverages down 0.6% over the last three months. Profits adjusted rose by 5.4 percent to nearly $5 billion.
In Europe, the brewer saw a high-single-digit growth in revenue due to higher prices and strong consumer demand for premium beverages. The brewer also reported record volume in markets like South Africa, Mexico, and Brazil. The group volume fell due to a decline in Asia-Pacific markets and North American.
The Chinese division of AB InBev had a disappointing third quarter, with revenues down 2.7% and volumes falling by 6.2%. AB InBev attributed the volume drop to the poor weather in March, which was consistent with the rest in the industry.
AB InBev has benefited from the recent trend of low- and no alcohol beverages. The company’s non-alcohol beer brands, Budweiser Zero and Corona Cero, reported “high teens” revenue growth.
AB Inbev, based in Leuven (Belgium), was founded 15 years ago by InBev, following a $52 Billion takeover of Anheuser-Busch. In a £79-billion deal eight years later, the expanded brewer swallowed SABMiller. The group has more than 500 brands of beer and 167,000 employees across 50 countries.
The share price rose by 4.7 percent, or €2.68, up to €59.22.
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