Anheuser-Busch Inbev SA's (NYSE: BUD) Bud Light pledged to buy back its own expired beer from wholesalers in response to the boycott triggered by the controversial promotional campaign featuring transgender social-media influencer Dylan Mulvaney, according to The Wall Street Journal.
What Happened: Earlier in March, a personalized Bud Light can was presented to Mulvaney as part of a larger marketing strategy aimed at diversifying the company's consumer base. Alissa Heinerscheid, Bud Light's first female marketing director, spearheaded the initiative to combat long-term declining sales, according to the WSJ.
Senior executives at Anheuser-Busch InBev were reportedly taken back by public reaction to the campaign; the company's subsequent response, largely characterized by silence followed by a non-specific statement, stoked criticism from all sides, escalating the situation further.
As a result, Bud Light sales volume plunged by more than 28% in the second week of May compared to the same period last year, indicating a significant impact from the boycott.
Seeking to control the damage and rebuild its brand image, the company announced plans to align itself more closely with themes like football and country music, WSJ said.
As part of its renewed strategy, Bud Light will be included in Anheuser-Busch's long-standing sponsorship of a veterans organization for the first time.
Bud Light's efforts can be viewed as its attempt to reconnect with its core customers while navigating the tricky balance between appealing to new consumer groups and retaining its traditional customer base.
BUD Price Action: Shares of Anheuser-Busch are trading 1.41% lower to $56.79, according to data from Benzinga Pro.