Anheuser-Busch InBev, the beer giant behind brands like Bud Light, Stella Artois, and Corona, recently released its first-quarter earnings results. While the company reported a 2.6 percent increase in global revenues, it also revealed a 9.1 percent decrease in revenues in the United States.
One factor that may have contributed to this decline is the backlash Anheuser-Busch faced over its decision to partner with influencer Dylan Mulvaney, who identifies as transgender. Last year, the company sent Mulvaney a pack of Bud Light beers with his face on them to celebrate his first year of identifying as a woman and to promote a contest. However, this move resulted in a boycott and caused the company to lose up to $6.5 billion in stock value.
In an effort to repair its image and regain the trust of U.S. consumers, Anheuser-Busch has taken several steps. It became the official beer partner of the UFC and signed sponsorship deals with the U.S. Olympic team and the upcoming Olympic Games in Los Angeles in 2028. These partnerships are aimed at showcasing the company’s commitment to supporting American farmers and veterans, as well as its contributions to organizations like Folds of Honor, which provides scholarships for the families of fallen servicemen and women.
Despite the challenges faced by Bud Light, other brands under Anheuser-Busch performed well. Corona, in particular, saw a significant increase in sales outside of its home market of Mexico, with a growth rate of 15.5 percent. This helped boost the company’s global revenues.
Anheuser-Busch’s CEO, Michel Doukeris, expressed confidence in the company’s future growth prospects. He highlighted the strength of the beer category and the company’s diversified global footprint as key factors contributing to its success. Doukeris also mentioned that the consistent execution by their teams and partners reinforces their confidence in delivering on their growth ambitions for 2024.
In terms of financial performance, Anheuser-Busch reported a 5.4 percent increase in normalized earnings before interest, taxes, depreciation, and amortization (EBITDA) to nearly $5 billion. The company exceeded Wall Street’s expectations for net income, which grew by 15 percent for the quarter.
Looking ahead, Anheuser-Busch expects its full-year EBITDA to align with its medium-term outlook of between 4 percent and 8 percent growth. This positive outlook reflects the company’s belief in the beer category’s resilience and its ability to leverage its global presence to drive further growth.
In conclusion, while Anheuser-Busch faced challenges in the United States due to the backlash over its partnership with Dylan Mulvaney, the company’s overall performance was strong. Corona’s sales outside of Mexico contributed to a global revenue increase, and the CEO expressed confidence in the company’s future growth. By taking steps to repair its image and demonstrate its commitment to American farmers and veterans, Anheuser-Busch aims to regain the trust of consumers and continue its success in the beer market.
