How did Bud Light lose its crown?
In April 2023, the biggest boycott against Bud Light in beer history broke out. Bud Light was overtaken by Mexico’s Modelo Especial as the top-selling beer in May, with sales dropping nearly 25% compared to one year ago. According to CNN, The world’s largest brewer may have lost as much as $1.4 billion in sales because of the backlash. This incident was quickly written into the marketing coursebook as a classic example of how brands make the wrong use of social media. You may ask What happened?
All the drama began with an Instagram post. The post is a brief partnership with transgender influencer Dylan Mulvaney. This musical cast became popular on TikTok during the pandemic because she bravely began her TikTok series “Days of Girlhood,” in which she documented almost every day of her transition, from her experience with hormone-replacement therapy to hatred from anti-trans opponents to the results of her facial feminisation surgery, or FFS. In the post, Dylan dressed herself like Holly Golightly from Breakfast at Tiffany’s and held a personalised bud light with her face on it to celebrate March Madness. Instead of driving sales as the brand had hoped, the partnership caused conservative commentators, politicians, celebrities, and consumers to call for a boycott of the brand.
If the campaign resonates well with specific segments of its consumer base, the brand could avoid all this drama. Thorough market research and segmentation are very important. This involves understanding the core audience deeply, including their values, beliefs, and potential sensitivities. This would include identifying customer segments and tailoring messages that resonate with each group without alienating others. Bud Light’s March Madness partnership is designed to attract more basketball fans to boost sales, but basketball fans are more conservative males, and transgender people happen to be a topic they are afraid to be interested in or even offended by.
The boycott occurred in a highly polarised societal and political climate, especially regarding issues of gender and identity. Bud Light’s campaign became a flashpoint in broader cultural debates, leading to strong reactions from various groups. Currently, trans issues are at the forefront of America’s culture war. There is a growing trend of anti-trans sentiment among many conservative groups. This sentiment is reflected in conservative media and legislation and is increasingly becoming a mainstream discourse.
I think Bud Light just wants to catch the social trend to resonate with younger, more socially-conscious audiences. After the boycott, Bud Light‘s response was to delete the videos and comments and use Bud Light’s historical support of LGBTQ+ causes as a smokescreen for recent inaction. Bud Light also does not reach out to Dylan and leaves her alone, facing all the bullies. She posted a video saying, “For a company to hire a trans person and then not publicly stand by them is worse, in my opinion, than not hiring a trans person at all.” Bud Light’s non-responsive behaviour toward the LGBT community has caused a loss of support.
As a marketing professional, the Bud Light boycott serves as a lesson on the importance of understanding your audience's values and expectations. It's crucial to anticipate potential reactions to campaigns and maintain clear, consistent communication. The boycott highlights the need for adaptability in marketing strategies and having a robust crisis management plan. Balancing brand values with consumer expectations is crucial to avoid alienating customers and effectively navigate the complexities of societal and political sensitivities.
