Despite recent challenges faced by Bud Light, advertisements featuring LGBTQ themes in the beer industry are no longer considered groundbreaking or innovative.
Bud Light, which has held a prominent position in the beer market for over two decades, is experiencing a decline in retail sales in the United States. This drop coincides with the brand’s decision to feature a transgender social media star in one of its advertisements, leading to criticism and negative reactions. The backlash includes disapproval from politicians and celebrities in the United States who expressed anger towards Bud Light for featuring a transgender spokesperson.
While it is challenging to establish a direct connection between Bud Light’s sales decline and the specific Instagram video that sparked controversy, Dave Williams, the Vice President of Analytics for Bump Williams Consulting, a firm specializing in the alcoholic beverage industry, notes that sales have been consistently decreasing since April while other brands have seen growth. Williams analyzed data from Nielsen IQ, which indicated that Bud Light’s dollar sales at retail outlets in the United States dropped by more than 24% in the week ending June 3, compared to the previous year. As a result, Mexican lager Modelo Especial claimed the top spot previously held by Bud Light.
The decline in sales is being attributed to a conservative backlash and subsequent fallout over the inclusion of LGBTQ groups in the advertisement. Despite beer companies utilizing LGBTQ communities in their marketing strategies for years, this particular backlash appears to have caught Bud Light and its parent company, AB InBev, off guard. According to Scott Knox, founder of industry group Pride in Advertising and Marketing, Bud Light’s response to the backlash was perceived as “lukewarm” and lacking decisiveness for both heterosexual and LGBTQ audiences. The company has not directly addressed or apologized for the video, although one of the executives involved has taken a leave of absence, and a press release stated that they never intended to contribute to dividing people. LGBTQ advocates, such as those at the U.S.-based Human Rights Campaign, have criticized the company’s responses as “shameful.”
Marketers, like Knox, believe that Bud Light should have taken a stronger stance in response to the backlash. While some customers expressed their anger through online videos, including celebrities shooting Bud Light cans with firearms, another segment of the customer base may have been displeased with Bud Light’s muted response.
It is worth noting that alcohol manufacturers have been targeting LGBTQ communities in their beer marketing efforts for years, participating in Pride festivals as sponsors and featuring individuals who identify as gay, lesbian, bisexual, or gender-nonconforming in their advertisements. This has been seen as a natural reflection of LGBTQ individuals’ presence in both the community and the economy.