What seemed like a tiny move, a small partnership with a famous social-media influencer, has cost Anheuser-Busch hundreds of millions of dollars.
The beer brand has dropped from its long-held spot as the top-selling beer in the U.S., and it has dragged down sales of some of its sister brands.
When Bud Light marketing executives decided to partner with the transgender influencer Dylan Mulvaney, they believed they were making an effort to expand the beer's reach into the LGBTQ+ market. The company sent Mulvaney some Bud Light cans with her face on them to celebrate her first year of living as a woman.
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Critics of the move say the backlash was inevitable, but it's hard to imagine that the promotion would backfire as badly as it did. In most cases, Mulvaney's posts would go unnoticed except for people who follow her on social media, and the core Bud Light audience would not even know it happened.
Kid Rock, however, made sure that was not the case as he posted a social-media video of him shooting up cases of Bud Light in reaction to the Mulvaney deal.
That led to boycotts, a slump (about 26%) in sales, and new attention to comments Bud Light Vice President Alissa Heinerscheid made on a podcast where she called the beer's customer base "fratty."
The controversy has split country music stars. Travis Tritt and John Rich, of the Big & Rich duo, publicly condemned the beer, while Garth Brooks faced right-wing backlash for making clear that he would sell it in his upcoming Nashville bar. The Bud Light controversy has been polarizing, and it's the rare boycott that has done real and prolonged public damage.
Now, Anheuser-Busch (BUD) -) has a new supporter and the beer producer, which has been trying to run away from politics, might not be thrilled at who it is.
Image source: Mike Cohen/Getty
Bill Gates makes a $100 million Bud Light bet
Microsoft (MSFT) -) founder Bill Gates has become a villain to the right-wing community, which mistrusts his global charity efforts. He was accused of all sorts of villainy when it came to covid vaccines including using them as a way to implant tracking chips in people's bodies.
Gates has also been named in conspiracy theories involving 5G spreading coronavirus, and in a broad sense he's widely seen by some on the right as a left-wing liberal trying to control people. Basically, like George Soros, Gates has become a symbolic woke -- or progressive -- billionaire whom some right-wing Americans blame for a lot of different things.
Now, Gates has, without saying a word, taken a stance on the Bud Light controversy. The Bill and Melinda Gates Foundation Trust disclosed in a document filed with the Securities and Exchange Commission that it has purchased more than $100 million of Anheuser-Busch shares.
Gates, who has said that he's not much of a beer drinker, also holds about $1 billion in Heineken Holdings (HKHHY) -) through the foundation.
A spokeperson for Cascade Asset Management, which manages the investments of Gate's foundation, sent TheStreet a statement on the purchase after this article was originally published.
“As Chief Investment Officer of Cascade Asset Management Company, Michael Larson oversees the investment decisions for the Bill & Melinda Gates Foundation Trust. Bill Gates did not purchase shares of Anheuser-Busch InBev nor did he participate in the investment decision of the Trust. Cascade, which manages the assets of the Trust, sees value in BUD at recent prices,” he shared.
Anheuser-Busch tries to move away from politics
In the wake of the scandal, Anheuser-Busch has tried to simply power past it. Bud Light has returned to its classic football, music, and celebrate-the-weekend vibes in its latest ads on its social-media feeds.
Anheuser-Busch Chief Executive Michel Doukeris addressed what the company has learned during its second-quarter earnings call.
"Our consumers across all sentiment groups have three points of feedback in common," he said. "One, they want to enjoy their beer without a debate. Two, they want Bud Light to focus on beer. Three, they want Bud Light to concentrate on the platforms that all consumers love, such as the NFL, Fields of Honor, and music.
"We are taking the feedback and working hard toward our consumers' business every day across the world."
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