Anheuser-Busch InBev reports 10.5% drop in revenue

After Anheuser-Busch announced it was laying off less than 2% of its United States workforce last week, parent company AB InBev has reported a drop in U.S. revenue in the second quarter as Bud Light sales declined following a consumer boycott.

On Thursday, the beer company said revenue in the U.S. declined by 10.5%, from April to June, from a year earlier, “primarily due to the volume decline of Bud Light,” according to the second quarter report.

Anheuser-Busch has watched U.S. sales decline following a consumer boycott in response to Bud Light partnering with transgender influencer Dylan Mulvaney, which led to Mexican lager Modelo Especial decrowning the American-made beer as the top-selling beer in the U.S.

However, AB InBev expressed confidence that its U.S. market share has stabilized.

“Our total beer industry share declined this quarter but has been stable since the last week of April through the end of June,” the company said in the report.

AB InBev CEO says total revenue has increased 7.2% with help from global brands

During an earnings call Thursday, InBev CEO Michel Doukeris said the company plans to provide financial support to U.S. wholesalers through the end of December to make up for the low Bud Light sales, The Associated Press reported.

“We’ve had three months so far since this situation, and we continue to learn and we continue to move forward with the main activities that we know that work everywhere,” he said.

Overall, total revenue worldwide increased 7.2% in the second quarter, from the same period a year ago, as global brands in the AB InBev portfolio, such as Stella Artois and Corona, made up for Bud Light’s sales, the company said.

Anheuser-Busch to lay off hundreds of positions

Last week, Anheuser-Busch said less than 2% of its U.S. workforce would be laid off. According to the company’s website, Anheuser-Busch says it employs “more than 19,000 employees nationwide,” which would mean roughly 380 positions or less being eliminated.

The beer company said front-line workers such as brewery and warehouse employees would not be impacted by the layoffs.

“While we never take these decisions lightly, we want to ensure that our organization continues to be set for future long-term success,” Anheuser-Busch Chief Executive Brendan Whitworth said in a written statement sent to USA TODAY. “These corporate structure changes will enable our teams to focus on what we do best − brewing great beer for everyone.”

Anheuser-Busch layoffs:After Bud Light sales dip, company cuts hundreds of jobs

The Bud Light controversy, boycott explained

In a video posted to Mulvaney’s Instagram, the influencer showed off a personalized Bud Light can as Mulvaney discussed the company’s $15,000 giveaway tied to March Madness.

The company was hit with weeks of backlash from conservative figures after the video was posted, including from musicians Kid Rock and Travis Tritt, who called for a boycott of the beer. Bud Light was later criticized by the LGBTQ+ community and allies for its response to the boycott.

Anheuser-Busch CEO Brendan Whitworth responded to the boycott in April, saying the company aimed to bring “people together over a beer.”

“We never intended to be part of a discussion that divides people,” Whitworth said. “Moving forward, I will continue to work tirelessly to bring great beers to consumers across our nation.”

Dylan Mulvaney addresses backlash

On June 29, Mulvaney said Bud Light did not reply when she reached out and called out Bud Light for its failure to publicly stand up for a transgender person.

Source link

Anheuser-Busch InBev reports 10.5% drop in revenue

Like this:

Leave a Reply Cancel reply

Access Denied

I-95 North in Philadelphia closes after truck hits overhead railroad bridge

Tens of thousands in UK with type 1 diabetes to receive artificial pancreas in a world-first initiative

Pot producers are on the rise as Florida voters decide on the fate of the use of recreational marijuana

Share this:

Like this:

Leave a Reply Cancel reply