The latest estimates of the staggering losses suffered by Anheuser-Busch since April 1, the day the Dylan Mulvaney controversy exploded, put their loss in market value at about $27 billion by the end of May.
The company had a $134.55 billion value as of March 31 before it plunged to $107.44 billion by the end of May, according to Dow Jones Market Data Group. The company’s stock plummeted 19.98% from its high in March. That 20% drop enters the zone of a bear market. Bud Light sales revenues have dropped 25.7% for the week ending May 20 compared to the same week in 2022, Bump Williams Consulting estimated.
On April 1, Mulvaney, a man who identifies as a woman, posted a video to his 1.8 million followers on Instagram promoting his partnership with Bud Light. “This month I celebrated my day 365 of womanhood, and Bud Light sent me possibly the best gift ever, a can with my face on it,” Mulvaney said.
By May 24, a report had estimated Anheuser-Busch InBev’s market value plunging $15.7. That estimate came from Investor’s Business Daily, which used a conversion to U.S. dollars using data from S&P Global Market Intelligence.
“We believe there is a subset of American consumers who will not drink a Bud Light for the foreseeable future,” Jared Dinges, beverage analyst at JPMorgan Chase, said on May 23. “We believe a 12% to 13% volume decline on an annualized basis would be a reasonable assumption.”
“Shares [of Anheuser-Busch] have underperformed EU Beer peers by 15% since the start of April,” Dinges continued. “We believe this is due to U.S. uncertainty, as investor focus has shifted squarely to the potential impact from the Bud Light controversy. … We do not expect the lost sales to be recovered in fiscal year 2024.”
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