– In May, BUD stock collapsed more than 17%, ending the month at $53.40.
– Year-to-date, Anheuser’s shares remain down around 5%.
– BUD shares stood at $57.26, rising around 1% at the market open on July 4.
– In the past 30 days, BUD started to show signs of recovery, climbing more than 5% from $54.18 to $58.95.
– Deutsche Bank expects current headwinds affecting the business to eventually fade.
– Anheuser seems to be benefitting from portfolio expansion and investments in Beyond Beer, B2B platforms, e-commerce, and digital marketing.
Bud Light facing a challenging recovery journey as sales plummet 30%.
– Sales fell sharply by more than 30% in the week leading up to Father’s Day.
– Industry experts are surprised by the slow sales recovery.
– Declining Bud Light sales are becoming “business as usual.”
– Breweries are struggling to keep up with beer supply.
Anheuser has taken measures to address the backlash.
– Imposed heavy discounts and large rebates on beer prices.
– Assisted distributors and expanded marketing budget.
– Launched a new summer ad campaign.
– Critics call for the CEO to quit after employee layoffs at one of the suppliers.
Hot Take:
The boycott against Bud Light seems to be losing steam as the stock shows signs of recovery. However, the journey to a full sales recovery may take longer than expected. Anheuser has implemented various efforts to address the backlash, but declining Bud Light sales have become a concerning trend. The company’s CEO is being urged to step down after employee layoffs. It remains to be seen how Anheuser will navigate these challenges and regain its footing in the market.
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