The stock of Anheuser-Busch has been downgraded by HSBC over lower sales numbers due to a boycott over Bud Light's partnership with transgender activist Dylan Mulvaney.
The stock was moved to "hold" status, meaning it is recommended to neither sell or buy.
Anheuser-Busch stock downgraded by HSBC analysts over Bud Light ‘crisis’ https://t.co/5A65Gf0cpH pic.twitter.com/gvXaFFl9BQ
— New York Post (@nypost) May 10, 2023
"Nationwide retail sales of the brand were down 23.4% versus a year ago in the week of April 29 — worse than the 21.4% decline it suffered a week earlier, according to Bump Williams Consulting and NielsenIQ data," the New York Post reported.
"The controversy appears to be taking its toll on other brands within the Anheuser-Busch umbrella. The company’s flagship Budweiser brand took an 11.4% sales hit for the week ended April 29," it added.
Anheuser-Busch stock DOWNGRADED by an HSBC analyst who said the firm is now dealing w/ a BUD LIGHT CRISIS😂after company didnt make its best choice in advertising..they didnt know who its drinkers were..Consumers have the powerhttps://t.co/qF05GvX1gn pic.twitter.com/hsZmPIdTp1
— Ga Peach (@Gapeach_3102) May 10, 2023
HCBS leader Carlos Laboy spoke out with tough questions about the beermaker's issues in recent weeks.
“Why did its U.S. leadership underestimate the risk of pushback given the recent experience of other firms? Is A-B hiring the best people to grow the brands and gauge risk?” Laboy wrote.
“If Budweiser and Bud Light are iconic American ideas that have long brought consumers together, why did these marketers fail to invite new consumers without alienating the core base of the firm’s largest brand?” he added.
Major Bank Downgrades Anheuser-Busch’s Stock Status As Sales Continue To Crater https://t.co/vM62CZyANb pic.twitter.com/CHiSpZfLfC
— Daily Wire News (@DailyWireNews) May 10, 2023
"Despite the continued freefall of Bud Light’s sales, Daily Wire host Michael Knowles points out that its parent company cannot break its commitment to left-wing ideology," the Daily Wire reported.
"Knowles pointed out Monday that AB InBev is a member of The World Federation of Advertisers. That group created The Global Alliance for Responsible Media (GARM), a 'cross industry initiative' to 'demonetize … harmful content,'" it added.
The iconic American beer brand now faces a major dilemma in returning to its roots to keep customers while seeking to appease its woke audience.
The push to do both may continue to hurt the company long-term as many have now seen how far the company is willing to go and want no part in supporting sales of Bud Light or its parent company.