AB InBev’s market value dropped $15.7B after Mulvaney incident.
Anheuser-Busch InBev Loses $15.7 Billion in Market Value Since Bud Light Controversy
A new report from anheuser-busch-15-7-billion/” target=”_blank” rel=”noopener”>Investor’s Business Daily estimates that Anheuser-Busch InBev has lost a staggering $15.7 billion in market value since April 1, the day the Dylan Mulvaney controversy exploded. Mulvaney, a man who identifies as a woman, promoted Bud Light during the NCAA March Madness tournament, causing a backlash from some consumers.
The Impact on Anheuser-Busch InBev
Shares of Anheuser-Busch’s stock have plummeted 11.9% since April 1, while Molson Coors Beverage shares have soared 20%, rewarding Molson Coors with over $2.2 billion in additional market value. According to JPMorgan analysts, U.S. beer volumes for Anheuser-Busch could plunge 12% this year.
“We believe there is a subset of American consumers who will not drink a Bud Light for the foreseeable future,” said Jared Dinges, beverage analyst at JPMorgan Chase. “We believe a 12% to 13% volume decline on an annualized basis would be a reasonable assumption.”
Bud Light accounts for 7% of Anheuser-Busch’s volume while Budweiser accounts for 11%, Corona 8%, and Brahma 7%.
The Future of Anheuser-Busch InBev
Anson Frericks, the former president of sales and distribution for Anheuser-Busch, recently intimated that trouble lay ahead for the company, telling The Daily Wire he foresaw “a long, hot, dry summer for Anheuser-Busch.”
“I think that you’re going to see sales continue to be down because customers, it’s too easy for them to switch to other brands, and they’re seeing the impact of their results,” he continued. “If they want those customers back, they have an easy decision that they can make, which is saying, ‘We want Bud Light customers back, therefore Bud Light is not going to get involved with political issues moving forward.’ If not, they’re probably going to be in a worse position next year and their sales will continue to decline.”
The Controversy
On April 1, Mulvaney posted a video to his 1.8 million followers on Instagram promoting his partnership with Bud Light. “This month I celebrated my day 365 of womanhood, and Bud Light sent me possibly the best gift ever, a can with my face on it,” Mulvaney said.
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