Bud Light parent company's stock downgraded by HSBC amid branding 'crisis,' huge sales drop

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HSBC is downgrading Anheuser-Busch InBev to hold following the Bud Light 'crisis' involving a marketing campaign featuring transgender activist Dylan Mulvaney.

Anheuser-Busch InBev CEO Michel Doukeris weighed in on the controversy around Bud Light's Dylan Mulvaney promotion Thursday on an earnings call, saying it was 'not a formal campaign.'amid a "crisis" following Bud Light's marketing campaign featuring transgender activist Dylan Mulvaney.that there are "deeper problems than ABI admits" after the social media partnership with Mulvaney in April.

"Is ABI’s leadership getting the brand culture transformation right? It’s mixed," Laboy wrote Wednesday in a note. "At Ambev, we think the answer is ‘yes;’ in the US, we think it’s ‘no.’ The way this Bud Light crisis came about a month ago, management’s response to it and the loss of unprecedented volume and brand relevance raises many questions," Laboy continued.Laboy cited a Beer Marketer's Insights note which reported a drop in beer sales of possibly over 25% in April.

"Why did its US leadership underestimate the risk of pushback given the recent experience of other firms? Is A-B hiring the best people to grow the brands and gauge risk?" the analyst added. "If Budweiser and Bud Light are iconic American ideas that have long brought consumers together, why did these marketers fail to invite new consumers without alienating the core base of the firm’s largest brand?"In the first three weeks of April, sales in the U.S.

 

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‘Bud Light crisis’: HSBC downgrades Anheuser-Busch stock, sees ‘deeper problems’ than company admitsHSBC stock analyst Carlos Laboy downgraded stock in AB InBev, Anheuser-Busch’s parent company, to “hold,” saying the U.S. branch of the world beer giant had been damaged by the flap over its partnership with transgender social-media influencer Dylan Mulvaney.
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