Bud Light’s parent company Anheuser-Busch has laid out a plan to appease beer distributors affected by two months of plunging sales sparked by an ongoing customer boycott.
The company plans to provide financial assistance to its wholesalers, reimburse fuel for distributors’ trucks and launch a new ad campaign for Bud Light next week, A-B CEO Brendan Whitworth wrote in a letter Thursday.
“We recognize that over the last two months, the discussion surrounding our company and Bud Light has moved away from beer, and this has impacted our consumers, our business partners, and our employees,” Whitworth said. “As we move forward, we will focus on what we do best — brewing great beer and earning our place in moments that matter to you.”
Bud Light sales have been roughly 25% lower year-over-year in every single week since it partnered with transgender influencer Dylan Mulvaney for an Instagram post in early April, setting off a firestorm of negative coverage on right-wing media and on social platforms. A tepid response to the controversy from the company’s CEO also angered LGBTQ+ advocates.
Damage was so severe that Bud Light, which is typically the top-selling beer in the United States, lost its place for May to Modelo Especial.
A-B is providing financial support based on the extent to which sales have fallen, according to Beer Business Daily, an influential beer trade newsletter. Some distributors will get between 20 cents to 50 cents back per case depending on how severe sales slipped, Beer Business Daily said. Fuel and freight surcharges will also be reimbursed through the rest of the year.
In response to the plan, a group of A-B wholesalers said it “greatly appreciates the support” of the financial assistance and said that they’ve “experienced a challenging last couple of months.”
“The support Anheuser-Busch announced today will help enable all of us to continue making a positive impact as we work tirelessly to bring our great beers to local bars, restaurants, and stores across this country. We are united and fully committed to moving forward together,” the group said in a letter obtained by CNN.
