sparked controversy in April after transgender influencer Dylan Mulvaney introduced a personalized beer can on social media, drawing outrage and calls for a boycott from conservatives.
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Bud Light’s ill-fated partnership with Dylan Mulvaney dominated conversations among marketers gathered in the south of France for this week’s Cannes Lions advertising festival.
It comes months after an advertising campaign sparked a backlash among conservatives, with LGBTQ+ advocates criticizing the group’s handling of the aftermath.
The Anheuser-Busch InBev The beer brand sparked controversy in early April after transgender influencer Mulvaney introduced a personalized beer can on social media, sparking outrage and calls for a boycott from conservatives. oppose the partnership.
But it was the company’s muted response to the backlash – which neither defended the promotion with Mulvaney nor placate the competition – that provided marketers with a clear learning curve, Industry leaders in Cannes agreed.
in one declare At the time, Brendan Whitworth, AB InBev’s North America CEO said the company “never intended to be part of a discussion that divides people.” But according to Sarah Kate Ellis, president and chief executive officer of LGBTQ+ rights organization GLAAD, Bud Light’s lack of engagement caused exactly that.
“What Bud Light did is they had a trigger reaction and they ended up alienating people,” Ellis told CNBC’s Tania Bryer on Wednesday.
“They don’t give extremists what they want, because extremists want everything. You can never satisfy a bully,” Ellis said.
“And then, to the LGBTQ community and our allies, we were rejected by them,” she continued. “You went to use us to go to the market, and then did not enter behind us.”
“So I think they ended up losing money, and you can see that in their stock price,” Ellis said.
Facing consumer backlash
AB InBev’s US-listed shares fell nearly 15% in the second quarter as consumers left the brand following the controversy.
May, Bud Light lost top position in the US beer market, lagging behind constellation brand‘ Modelo after sales fell 24.6% year over year.
David Droga, CEO of Accenture Song, said the response shows a growing consumer demand for both authenticity and accountability.
“The action itself may have been done for what purpose or maybe it was overblown. But how they reacted, I think there’s going to be some debate as to whether they did it right or not,” Droga said.
“You have to know how and when to show up. If things are tactical, as opposed to sincere, sometimes that can backfire,” he added.
Andrew Clarke, global president of Mars Wrigley, agrees. He noted that brands face an increasingly complex balancing act when interacting with consumers on culturally sensitive issues.
“It’s always a balancing act. Brands want to be part of the conversation, they want to be culturally relevant and really connect with consumers, so it’s very difficult to get,” says Clarke. strike the right balance”.
An awakening’
AB InBev’s global chief marketing officer, Marcel Marcondes, said Monday that the month-long Bud Light boycott is a wake-up call for the company.
However, he stressed that the beer is doing a better job of attracting customers and is now “coming back”.
Deutsche Bank on Thursday upgrade shares of the beer company to buy from holding and pushed its target price 1 euro ($1.1) higher to 60 euros per share, citing improving consumer sentiment.
Cannes Lions CEO Simon Cook on Wednesday praised Marconde’s humility.
“His message to people is that this can happen with great brands, no matter how successful they are. What really matters is what you do next with that brand,” Cook said. .
Other brands include Target, Kohl’s And VF Joint Stock Company The North Face brand also has under pressure about their decision to participate in LGBTQ+ campaigns during Pride Month, with mixed results.
Cook also defended the organization’s decision to award AB InBev one of its highest honors, Creative Marketer of the Year, in recognition of other successes at the company. Budweiser’s swift response to the last-minute alcohol ban at the World Cup in Qatar also made it to the shortlist for the Titanium Lions award.
“That aside, AB InBev introduced and embedded a culture of creativity in their organization,” he said. “So we gave that award in recognition of this sustainable innovation they’re able to generate year after year.”
