Anheuser-Busch Drops Millions On ‘Incentives’ As Bud Light Struggles
In the wake of Anheuser-Busch’s controversial partnership with transgender social media influencer Dylan Mulvaney, the downward trajectory of Bud Light sales was immediately obvious.
More than six months after an effective and widespread boycott of the brand went into effect, sales are still trailing well beyond last year despite deep discounts being implemented in an effort to boost consumer interest.
Recent reports shed new light on the lengths Anheuser-Busch had to go in order to convince retailers to keep the beer in stock. Beer Marketer’s Insight determined that the company shelled out “incentive payments” totaling about $150 million to distributors who might have otherwise declined to carry Bud Light due to sagging sales.
That number includes the cryptic category of “market share recovery incentives,” which is expected to total millions of dollars but does not include any additional information from Bud Light’s parent corporation.
Evidence shows that Anheuser-Busch has been pursuing this expensive relief plan since June, about two months after Bud Light teamed up with Mulvaney and as the company began to recognize the staying power of the backlash that collaboration sparked. It is expected to remain in effect at least until spring.
Last month, one industry insider confirmed that sluggish sales numbers would only perpetuate Bud Light’s continued loss of valuable retail space. The source asserted that the brand “is set to lose refrigerator space at a vast network of stores belonging to key beer sellers like Walmart and 7-Eleven, since the retailers typically reapportion shelf space based on recent sales performance, taking space away from struggling brands and giving it to hot-selling ones.”
Anson Frericks, who previously served as an executive at Anheuser-Busch InBev, acknowledged the deleterious impact that this trend could have on Bud Light’s future.
Calling the brand’s display on retail shelves “the single largest determinant” of how well it will sell in a particular store, Frericks added: “During a busy shopping period on a Friday or Saturday night, if you don’t have the beer available on the shelf, consumers pick something else. There will be a dramatic shift.”
Widespread speculation earlier this year suggested that Costco planned to stop selling Bud Light in its members-only warehouse stores.
