Anheuser-Busch surpassed its global third quarter expectations, though it's still feeling the hit from Bud Light boycotts that began in April.
The adult beverage company saw a 5% increase in revenue during the quarter — a notch above its forecast of 4.7% — which was driven by international sales growth in areas like Africa and Asia.
These sales helped Anheuser-Busch BUD to offset slow performances in Europe and the United States.
Related: Bud Light makes a huge branding move after signing a new deal
But while the company's international growth has kept its arrow pointed upward, Bud Light's U.S. sales have kept it from its full potential. Its revenue is down 13.5% despite more money being put into marketing in an attempt to recover from its branding hit.
The boycotts started in April after the company partnered with transgender influencer Dylan Mulvaney on a March Madness-themed social media post. Despite Bud Light already doing several Pride posts in previous years, the partnership with Mulvaney drew greater criticism from the brand's conservative supporters, prompting many to boycott the brand all together.
This included the likes of Kid Rock, who recorded himself firing a gun at Bud Light cans days after the post of Mulvaney.
Related: The Bud Light controversy and its impacts explained
Modelo has taken over Bud Light as the country's largest beer brand in terms of market share.
However, in an attempt to regain footing against its rival, Bud Light recently reclaimed its partnership as the official beer of the Ultimate Fighting Championship (UFC). Modelo had taken over that partnership from Bud Light in 2017.
Action Alerts PLUS offers expert portfolio guidance to help you make informed investing decisions. Sign up now.
