HSBC has downgraded the stock of Anheuser-Busch to a “hold” status after the company continues to suffer from a consumer boycott over the Bud Light partnership with a cringy TikTok celebrity, Dylan Mulvaney.
Mulvaney, a man who has appeared on social media sites as a pubescent girl, was highlighted with his face on the cans of Bud Light in April, in celebration of his “one year of being a girl.” Ads featuring Mulvaney in bubble bath surrounded by cans of beer that had his face on it infuriated the Bud Light consumers, who wanted nothing to do with the pretend-a-gender wars.
HSBC’s rating advises not to buy or sell shares of AB InBev until the company recovers from its sales having cratered in recent weeks. According to Carlos Laboy, managing director for the global beverage sector of HSBC, AB InBev has done a poor job of responding to the crisis in confidence in its brand.
HSBC Holdings is a British multinational bank and financial services holding company. It is the largest bank in Europe by total assets, and serves 39 million customers through its global wealth, personal banking, commercial banking and global banking.
Sales of Bud Light were down 23.4% year over year for the week of April 29, according to data from NielsenIQ, a consumer analytics firm, and Bump Williams Consulting. That meant Bud Light sales dropped to $71.6 million that week.
Other A-B brands are being affected: Michelob Ultra was off 4.4%, to $60.2 million.
At the same time, competitor beer brands saw growth in sales: Coors Light was up 20.3%, to $56.7 million, while Miller Lite was up 20.6%, to $49.2 million.
“It’s not just a Bud Light issue,” Bump Consulting CEO Bump Williams told the New York Post. “It’s an Anheuser-Busch portfolio problem now.”
While some bars have pulled the Bud Light products from their offerings, the company has attempted to walk back its mistake. So far, consumers have not been in a forgiving mood — according to the data.
The AB InBev stock price was $66.57 at the beginning of April, as the Dylan Mulvaney partnership was revealed. Today’s closing price was $61.81.
