An earnings report paints a grim picture for Bud Light in the United States.
Anheuser-Busch InBev said that Bud Light sales for the third quarter caused a 13.5 percent decline in the company’s U.S. revenue, although its worldwide adjusted earnings rose for the quarter.
“Revenue declined by 13.5 percent with revenue per hl [hectoliter] increasing by 4.9 percent driven by revenue management initiatives,” said the brewing giant in a report, released Tuesday. It also noted a 17.6 percent decline in sales to wholesalers and a decline of 16.6 percent for sales-to-retailers.
That’s “primarily due to the volume decline of Bud Light and impacted by shipment phasing ahead of our October price increase last year,” Anheuser-Busch wrote, noting that its U.S. earnings before interest, taxes, depreciation, and amortization (EBITDA) declined by 29.6 percent for the quarter.
“Approximately two-thirds of this decrease attributable to market share performance and the remainder from productivity loss, increased sales and marketing investments and support measures for our wholesaler partners,” the report said.
It marks the second quarter where the Bud Light controversy has impacted sales in the United States. In August, Anheuser-Busch InBev said that its U.S. division also saw a drop in profit amid the backlash.
But overall, the world’s largest brewer and parent company of Bud Light said adjusted earnings for the latest quarter rose 4.1 percent, to $5.4 billion, on revenues that climbed 5 percent, to $15.6 billion.
“Our mainstream portfolio delivered a mid-single-digit revenue increase as double-digit growth in South Africa, Colombia, and the Dominican Republic was partially offset by the revenue decline of Bud Light in the U.S.,” the report also said. “Our mainstream brands gained or maintained share of segment in the majority of our key markets, according to our estimates.”
Bud Light sales plunged amid a conservative backlash after the brand sent a commemorative can to transgender influencer Dylan Mulvaney in early April before it was posted on social media. For a number of consecutive weeks, according to publicly available data, sales of Bud Light saw double-digit declines year over year.
By Jack Phillips
