Burgeoning numbers of companies are bombarding consumers with social issues in business and product advertising. But one company, Anheuser-Busch InBev, waded too far, triggering a rebellion that has damaged the brand, torpedoed sales and torched millions of dollars in shareholder value.
The Belgian-based firm's Bud Light marketing vice president unveiled a tribute to Dylan Mulvaney, a transgender "influencer" who was invited to the White House by President Biden. Not only did Bud Light tout Mulvaney's transition, but the ad guru preceded to bash its customer base.
The veep insulted Bud Light's top consumers, calling them too "fratty," an apparent reference to beer swilling males. The marketing veep gushed that attracting transgender males would expand the customer base, boosting sales. The decision may go down as the greatest marketing blunder ever.
Compared to last year, retail sales of Bud Light nosedived 25% in the week ending May 13, That surpassed the 23.3% slump in April. Anheuser-Busch InBev shares plunged 5%, leading to a loss of $6 billion in market value. Several financial analysts downgraded the stock as sales skidded.
Anheuser is in full retreat. The V-P marketing is on leave as is her boss. Executives are labeling the Mulvaney linkage "just one influencer, one post and not an ad." Bigwigs all the way to the top of the corporate ladder are making like Pontius Pilate, washing their hands of this smelly muck.
In a retrenchment, A-B is wrapping itself in the flag. The company is set to launch a line of camouflage aluminum bottles that promotes the "Folds of Honor" program, which provides scholarships for families of fallen and disabled military service members and first responders.
For good measure, another A-B brand, Budweiser, is planning a launch of limited edition beer cans featuring images inspired by motorcycle manufacturer Harley-Davidson. The LGBTQ activists are now threatening their own boycott of the firm for backing away from Mulvaney.
The usual media suspects--NPR, The New York Times, Washington Post and LA Times--are serving up baloney calling out current Bud Light drinkers for being trans-phobic. The media echo chamber pompously downplays the loss of market share as trivial to discourage product boycotters.
You could surmise the Bud Light kerfuffle might dissuade other consumer firms from embracing social issues. Never underestimate corporate herd mentality. Within weeks, Adidas debuted a transgender model posing in a women's bathing suit. There is a noticeable bulge in the crotch area.
The reaction has been swift among women who are increasingly angered by what they view as misogyny. Transgender males are increasingly usurping female roles. Why deliberately alienate the people who buy your product? Sound marketing has been scrapped for social issue signaling.
This is clearly not about sales. Transgenders are not a large, lucrative market. A Pew Research poll conducted in May, 2022, found that 0.6% of American adults are transgender. That is not a typo: 0.6%. Including non-binary adults inches the needle to 1.6%.
These firms are appealing to those who embrace the transgender ideology. Many are being cajoled by big investment firms such as BlackRock, State Street and Vanguard. Others are influenced by activist groups whose clout exceeds the number of members.
In other cases, a corporation's employees are increasingly goading leadership into supporting a social cause. When the Florida legislature passed a bill prohibiting teaching sexual orientation and gender identity to elementary children, employees within Disney insisted the firm take a public stance.
Disney management acquiesced and stirred up a political hornet's nest. An acrimonious war-of-words has ignited an ongoing feud between Disney and the state's Governor Ron DeSantis and the Republican legislature. In the process, Disney has lost some of its family entertainment sheen.
Corporate political interference is nothing new. A case in point: The CEO's of Delta Airlines and Coca-Cola, both based in Atlanta, voiced strong opposition a Georgia voting law in 2021, Despite the corporate pressure, the Republican Gov. Brian Kemp signed it into law.
Allegations of the law's effort to suppress voting proved to be patently false when Georgians turned out in record numbers to vote in the 2022 midterm elections. Don't expect Coca-Cola or Delta Airlines to issue a mea culpa. Corporate cowards never admit they were wrong.
Not too long ago corporate America was assiduously apolitical. Businesses lobbied state legislatures, Washington's politicians and local officials, often outside the public's view. Corporate advertising was reserved for selling products or buttressing the firm's image with its customers.
The larger the firm today the more likely it will be fronting social and political issues. CEO's feel insulated because few customers ever complain and boycotts have proven short-lived. However, the Bud Light episode may serve as a red flag that the tide may be turning, if only slowly.
That would be a refreshing development for our democracy. Unelected corporations today carry as much clout as political parties to advance social and political positions. Consumers hold the power to vote with their dollars against corporate influence. Now they need to use it.
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