Republican presidential candidate and former U.S. President Donald Trump attends a Nevada caucus night party at Treasure Island Resort & Casino in Las Vegas, Nevada, U.S. February 8, 2024.
David Swanson | Reuters
Former President Donald Trump wrote a social media post earlier in the week asking his supporters to give Anheuser-Busch a “second chance” after UFC president Dana White personally asked him to back the beer company, a source told CNBC.
Anheuser-Busch last year suffered a major backlash over its Bud Light marketing promotion with a transgender influencer, Dylan Mulvaney.
White, whose UFC is the leading mixed martial arts promotion, reached out directly to Trump to encourage positive commentary about Anheuser-Busch, according to the source, who was familiar with the situation.
In his Truth Social post on Tuesday, Trump appeared to be well-informed about detailed aspects of the beer company’s operations.
He noted that the company spends $700 million a year “with our GREAT Farmers,” employs 65,000 Americans and has provided scholarships to families of fallen members of the military. Trump wrote, “Anheuser-Busch is a GREAT American brand that perhaps deserves a Second Chance?”
UFC, which is owned by TKO Group Holdings, in October announced a partnership with Anheuser-Busch to make Bud Light the official beer partner of the mixed martial arts company, in a deal that was reported at the time to be worth $100 million.
In a press release announcing the deal, White said, “There are many reasons why I chose to go with Anheuser-Busch and Bud Light, most importantly because I feel we are very aligned when it comes to our core values and what the UFC brand stands for.”
A spokesman for UFC declined to comment on White’s conversation with Trump. A spokesperson for Anheuser-Busch did not respond to a request for comment.
In his social media post on Tuesday, Trump threatened to release a list of companies – other than Anheuser-Busch – that he considers to be “woke.”
“Am building a list, and might just release it for the World to see,” Trump wrote. His followers, Trump suggested, should be “going after those companies that are looking to DESTROY AMERICA!”
“Those comments came after Trump in a social media post on Sunday was much more critical of the company, saying: “the Bud Light ad will go down as the WORST AD in history.”
“In a matter of minutes 30 billion dollars worth of market cap simply disappeared from the face of the earth. Will they ever get it back? Who knows, but what a mess!” Trump wrote.
Trump, who is the front-runner for the Republican presidential nomination, attended UFC’s Dec. 16 event in Las Vegas, where he walked out into the audience with White and the musical artist Kid Rock.
Trump had attended two other UFC events previously in 2023, and had been at other of the promotion’s events in prior years.
Here are the biggest calls on Wall Street on Wednesday: TD Cowen names Liberty Formula One a top pick TD said the motorsports company is a top pick in 2024. “We view FWON as a capital-light royalty on the growth & monetization of a premium global sports league.” BMO reinstates Apollo Global as outperform BMO reinstated coverage of Apollo and said the private equity company is well positioned. “Amid a crowded fundraising environment, prized features in alternative asset management include credit origination capabilities, distribution channel diversification, and business model resiliency to higher interest rates.” Morgan Stanley downgrades Plug Power to underweight from equal weight Morgan Stanley said in its downgrade of the electric vehicle charging company that it sees deteriorating “hydrogen economics.” “In the U.S., we cut PLUG to UW on liquidity concerns and worsening hydrogen economics.” UBS upgrades Anheuser-Busch InBev to neutral from sell UBS said in its upgrade of the brewer that it’s getting more bullish on EBITDA growth. “We have been impressed with ABI’s share gains in recent years, however see a risk that part of these share gains are given back, particularly in Mexico, Brazil and South Africa.” Citi upgrades Signet to buy from neutral Citi said in its upgrade of Signet Jewelers that the “jewelry recession” is almost over. “This is a better business than pre-pandemic but achieving their 10% EBIT margin goal not necessary for the stock to work.” Bank of America names Qualcomm a top pick Bank of America said the company is a top AI beneficiary. “Our top pick is Qualcomm (QCOM US) under the on-device AI theme with its new smartphone application processor (AP), Snapdragon 8 Gen 3.” Morgan Stanley resumes J.M. Smucker at equal weight Morgan Stanley resumed coverage of the peanut butter and jelly maker, which recently closed on the purchase of Hostess Brands, with an equal weight rating, largely due to valuation. ” SJM’ s Q2 EPS beat and increased FY24 EPS guidance on the legacy business underscore its favorable topline drivers in FY24 and cost flexibility.” Raymond James upgrades Shake Shack to strong buy from outperform Raymond James said in its upgrade of the burger chain that it sees improving profit margins. “We are upgrading SHAK to Strong Buy from Outperform as we 1) believe the company is still in the early innings of driving improved margins and lowering development costs and 2) see idiosyncratic opportunities into 2024 to increase margins and potentially stimulate traffic, which could create upside to consensus 2024 expectations.” Raymond James upgrades AutoZone to strong buy from outperform Raymond James said the auto parts retailer has “compelling valuation and fundamentals.” “[W]e remain upbeat on the overall industry fundamentals (pricing environment remains rational) and AZO’s market share potential on a multiyear basis.” Bank of America upgrades Jack Henry to buy from neutral Bank of America said in its upgrade of the financial services company that it has an attractive pipeline of products. “We upgrade JKHY to Buy from Neutral, driven by the company’s high quality business model, solid bookings and pipeline, more palatable valuation, and prospect for margin expansion and [free cash flow] conversion to improve in F25.” Bank of America downgrades Toast to neutral from buy Bank of America said in its downgrade of the restaurant payment company that it sees too many risks. “We downgrade TOST to Neutral from Buy. Shares have lagged significantly since the 3Q print, and we see risks which could inhibit near-term re-rating higher.” Bank of America downgrades PayPal to neutral from buy Bank of America said it thinks it will take longer to fix the stock. “Shares have traded up from lows following PYPL’s modest 3Q beat and new CEO Alex Chriss’ fresh messaging around profitable growth and increased urgency around execution.” Bank of America upgrades Discover and Capital One to buy from neutral Bank of America upgraded several credit card stocks on Wednesday, believing “we are in the latter stages of the current credit cycle and expect losses to peak in 2H2024.” “We update our estimates for Capital One (COF) and Discover (DFS), upgrade to Buy from Neutral on both and raise POs to $129 and $116 (from $112 and $94) respectively.” JPMorgan upgrades Devon Energy to overweight from neutral JPMorgan said in its upgrade of the energy company that it sees an attractive risk/reward. “Upgrade Devon (DVN) to OW from N: DVN shares have lagged peers by ~20% YoY, but risk-reward is skewed favorably given low expectations plus self-help initiatives.” Redburn Atlantic Equities reiterates Walmart as buy Redburn is standing by its buy rating on the big box retail giant. “Overall, we believe Walmart remains exceptionally well-positioned for any macroeconomic scenario in 2024 and we maintain our Buy rating with a $180 price target.” Guggenheim reiterates Tesla as sell Guggenheim is standing by its sell rating following the cyber truck debut last week. “We believe TSLA will wait closer to launch to take orders (6-12 months prior) for vehicle to limit impact on selling current model lineup.” TD Cowen names Regeneron a top pick TD called the pharmaceutical company a top idea for 2024. ” Regeneron is one of the more fundamentally attractive companies in large-cap biotech.” Wedbush downgrades Shopify to neutral from outperform Wedbush downgraded the stock, mainly citing valuation. “While we continue to hold a favorable view of Shopify’s overall strategy and competitive positioning within eCommerce, shares have risen +53% since the company reported 3Q23 results on November 2nd and now trade at a significant premium relative to software peers across key valuation metrics.” Oppenheimer names Deere a top pick Oppenheimer says Deere is a “best-in-class through-cycle pick.” “And while we believe the downturn will prove less severe than the prior, evaluating swing factors it is simply too early to suggest 2025 can return to growth vs. 2024, adjusting all three models lower in 2025 to reflect a continued downtrend.” Guggenheim upgrades Sphere to buy from neutral Guggenheim said it’s seeing strong demand for the Las Vegas events and entertainment company. “Revenue in the quarter has been driven by strong demand for The Sphere Experience (SPHR’s owned content), the U2 show run, Exosphere activations, and the F1 takeover.” Mizuho reiterates Robinhood as buy Mizuho stood by its buy rating on Robinhood shares after a recent dinner with company management. “Following strong November crypto data (+75% vs. Oct. vs. just +60% for Coinbase), it was nice to hear that management is equally bullish on continuing to gain share in crypto.” Citi reiterates Johnson & Johnson as buy Citi said JNJ is “best-in-class” after a series of investor meetings. “What we walked away with was not just numbers and goals, but a sense that in its new formation the company and management are focused on striking a path forward and delivering best-in-class products and financial delivery.” HSBC downgrades Asana to reduce from hold HSBC said in its downgrade of the software company that it sees too many headwinds for Asana. “Margin expansion drives narrower 3Q FY24 loss; however, macroeconomic challenges continue.” KeyBanc initiates Vital Energy as overweight Key said in its initiation of the former Laredo Petroleum that it’s “in transition.” “On the heels of bold and reasonably structured (in our view) transactions, Vital is boot-strapping its way back to relevance with investors, and now has deeper and higher-quality inventory (~725 locations) it can leverage to lower cash opex/F & D costs and improve margins going forward.”
Marchers with Starbucks pass through the landmark intersection of Hollywood and Highland during the annual Pride Parade in Los Angeles, June 12, 2022.
David Mcnew | Getty Images
Strikes at some organized U.S. Starbucks stores started Friday in Seattle, after the coffee giant and the union representing baristas publicly clashed over claims that the company was not allowing Pride month decor in cafes.
The union, Starbucks Workers United, said more than 150 stores representing nearly 3,500 workers have pledged to join the strikes, which will take place over the next week. More than two dozen additional stores are voting on strike authorizations and the count could rise to nearly 200 stores by the end of the week, the union said.
Last week, the union alleged dozens of U.S. stores were not allowing employees to decorate for Pride month, accusations that suggested a wave of backlash against LGBTQ+ inclusion had reached a perceived liberal bastion in corporate America. Starbucks said it had not revised its guidelines for store decorations.
“We want to be crystal clear – Starbucks has been and will continue to be at the forefront of supporting the LGBTQIA2+ community, and we will not waver in that commitment!” Starbucks CEO Laxman Narasimhan and Executive Vice President and President for North America Sara Trilling said in a statement Friday.
“Despite today’s public commentary, there has been no change to any of our policies as it relates to our inclusive store environments, our company culture and the benefits we offer our partners. We continue to encourage our store leaders to celebrate with their communities including for U.S. Pride month in June, as we always have,” they added. The executives said they “strongly disapprove of any person or group, seeking to use our partners’ cultural and heritage celebrations to create harm or flagrantly advance misinformation for self-interested goals.”
In response to the strike pledges, the company earlier said, “Workers United continues to spread false information about our benefits, policies and negotiation efforts—a tactic used to seemingly divide our partners and deflect from their failure to respond to bargaining sessions for more than 200 stores.”
In a post on its website, Starbucks shared a June 14 letter from its VP of Partner Resources, May Jensen, to Workers United President Lynne Fox demanding the union “cease from knowingly misleading partners.”
Protesters in Seattle join a Starbucks Workers United strike over what the union alleges is a change in policy over Pride décor in stores. Starbucks maintains it has not changed its policies and encourages stores to celebrate within the company’s security and safety guidelines, while the union alleges workers in 22 states where workers have not been able to decorate.
Rob Weller | CNBC
Workers United has alleged instances in at least 22 states when workers have not been able to decorate, pointing to social media accounts where workers have documented their claims. The union said it has filed an unfair labor practice charge against Starbucks over what it alleges is a change in policy. Some of the strikes in the coming days are tied to that claim.
Not all of the stores that will strike had issues related to Pride decor.
Parker Davis, a 21-year-old barista in San Antonio, Texas,works at a store that has not had a dispute around Pride decor but will be a part of the strikes.
“There’s a large percentage of partners at my store who are part of the LGBTQ community, and who feel that Starbucks’ continued actions with trying to limit or take down pride decorations just doesn’t make sense with what the company has done in the past,” Davis said.
Davis told CNBC he expects several picketers, but said it was unclear if the store would be able to open during the strike.
The public back-and-forth over decorations to celebrate Pride month comes as major brands including Target and Bud Light have been targeted for supporting the LGBTQ+ community. In both of those cases, the companies faced opposition from conservative consumers to partnerships with or merchandise for transgender people — and then saw backlash from more liberal customers for perceived deference to the critics.
In Oklahoma, workers were told restrictions on decorating were out of a concern for safety after recent attacks at Target stores, the union said.
Protesters in Seattle join a Starbucks Workers United strike over what the union alleges is a change in policy over Pride décor in stores. Starbucks maintains it has not changed its policies and encourages stores to celebrate within the company’s security and safety guidelines, while the union alleges workers in 22 states where workers have not been able to decorate.
Rob Weller | CNBC
The Starbucks workers are also striking over claims that the coffee chain is dragging its feet on negotiating contracts.
“Good faith bargaining looks like both sides providing proposals and trying to meet in the middle — Starbucks is not willing to do that,” Workers United said in a statement. “Despite having our non-economic proposals for over 8 months and our economic proposals for over a month now, Starbucks has failed to tentatively agree to a single line of a single proposal or provide a single counter proposal. What Starbucks is doing is not bargaining, it’s stalling.”
The strike “is important to me because it sends the message that we are not going to stand idly by while Starbucks continues to delay contract negotiations and continues to participate in union busting,” Davis said.
For its part, Starbucks maintains Workers United has responded to only a quarter of the more than 450 bargaining sessions Starbucks has proposed for individual stores nationally, to date, and said it is committed to progressing negotiations toward a first contract.
Protesters in Seattle join a Starbucks Workers United strike over what the union alleges is a change in policy over Pride décor in stores. Starbucks maintains it has not changed its policies and encourages stores to celebrate within the company’s security and safety guidelines, while the union alleges workers in 22 states where workers have not been able to decorate.
Rob Weller | CNBC
The roastery where the strikes started Friday has not had any disputes over Pride decorations, but is also striking in solidarity. About two dozen unionized employees protested outside the store during the day. The location was closed after it briefly opened, a Starbucks spokesperson said.
“The roastery wants to show solidarity with all workers that have been discriminated against in the company,” Mari Cosgrove, a 28-year-old barista at the Seattle location, told CNBC.
“Frankly, it feels like an attack when these flags are taken down,” Cosgrove said. “The partners in these stores really appreciate being able to be seen and feel like this is a community space for them. Starbucks has really prided itself on being a third place, including for its workers.”
More than 300 company-owned stores have voted to unionize since the first filing took place in August of 2021, but Starbucks and Workers United have yet to agree to a contract.
Starbucks has more than 9,000 company-owned locations in the U.S.
Bernstein said Bud Light volumes have further to fall, but is still optimistic on AB InBev’s stock going forward. The firm reiterated an outperform rating on Anheuser-Busch with a $71.60 price target, which represents upside of 30% from Monday’s close. Analyst Trevor Stirling noted that the massive selloff in the stock stemming from customer backlash over the company’s social media partnership with a transgender influencer was largely “overdone.” AB InBev shares are down more than 17% in the second quarter. BUD YTD mountain BUD in 2023 He noted that the company’s “Stub ABI” segment — which excludes Bud APAC and Ambev — is now trading at an all-time low multiple. “We believe this is an attractive entry point ahead, as raw material inflation eases and translates into better margins,” Stirling said. Still, he said Bud Light volumes could continue to take a hit after already falling by roughly 30% in the U.S. in the second quarter. “We also assume that Bud Light volumes will take a permanent -15% haircut with an associated drag on operating leverage,” the analyst said. Last month, HSBC downgraded Anheuser-Busch InBev stock over what the firm labeled a ” Bud Light crisis ,” and noted that the company could be contending with larger problems than it wants to admit. — CNBC’s Michael Bloom contributed to this report.
Pride Month merchandise is displayed at a Target store on May 31, 2023 in San Francisco, California.
Justin Sullivan | Getty Images
Even before Pride month was underway, it seems as if it was open season on companies celebrating the LGBTQ community.
One by one, companies have come under an expanding attack. Anheuser-Busch,Target, Kohl’s and VF Corp.’s North Face brand have all felt the vitriol of this latest push from the right. And the list keeps growing. These companies have been branded as “woke capitalists” — and worse — as critics urged boycotts of these companies’ products. Bud Light came into the crosshairs after it struck a partnership with trans influencer Dylan Mulvaney, while North Face received backlash for an ad featuring drag queen Pattie Gonia. Target and Kohl’s have been criticized for Pride-themed clothing.
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While it’s too early to say how successful these efforts will be in lowering sales at the companies recently drawn into this attack, damage has been done to the stocks already. And some on Wall Street expect that to continue with analysts recently downgrading Target’s and Anheuser-Bush’s ratings, citing in part the ongoing controversy.
“The main reason boycotts generally are effective is because they threaten the reputation of the company by putting the company in a negative media spotlight, and companies don’t want to have negative attention of any kind drawn to them,” said Brayden King, a professor of management and organizations, who has studied how boycotts impact company stock prices, in an interview.
King’s research focused on 133 separate boycotts launched between 1990 and 2005, in a study that was published in 2011. About a quarter of the 177 companies targeted by these actions offered a concession to protestors.
“They often concede to boycotter’s demands, not because they feel that there’s sales pressure on them, but rather because they don’t want to continue to be a target of negative media attention,” he said.
King’s research found that the stock of a company will fall about 1% each day of national print media coverage. But once the issue falls out of the daily news cycle, the stock generally recovers.
King sees Anheuser-Busch’s situation as an outlier because the controversy has harmed its sales. The company has been under fire for more than two months. Over that time, its stock is down more than 18%.
Anheuser-Busch InBev shares hit a 52-week high of $67.09 on March 31.
“With 7 weeks of data, the consumer backlash at Bud Light seems quite durable,” said Cowen analyst Vivien Azer, in a research note Friday. “This is not a surprise to us, given how violent the responses were to Bud Light on social media. Indeed, in each of the last five weeks, we have seen Miller Lite and Coors Light gain over 200 bps of market share from Bud Light (where market share fell 390 bps most recently).”
Cowen’s consumer research suggests Molson Coors will be able to maintain the market share it’s gaining.
“Relative to Miller Lite and Coors Light, the Bud Light brand seems to skew to white consumers, men, younger consumers and lower-income consumers. The income bias toward Bud Light, we believe, is a key factor in driving the durable market share gains to TAP,” Azer explained.
Molson Coors shares are up 24% over the past two months, as analysts have spotlighted the market share gains it’s making.
Bud Light has tried to win back customers with a $15 off rebate program on Budweiser, Bud Light, Bud Select and Bud Select 55. While shoppers will need to put out money for the purchases on the front end, once the rebate is processed, the product is essentially free, according to Azer.
Will this be enough to soothe angry consumers? She’s unconvinced.
“Recall there were consumers that were happy to destroy beer they had already purchased,” she said.
Budweiser beer in the brewery section at a Walmart Supercenter on March 02, 2023 in Austin, Texas.
Brandon Bell | Getty Images
There are several factors contributing to the impact the Bud Light boycott is having on sales that are specific to the beer category, according to King. He said, the first is that a bar, restaurant or music venue could remove the product, which takes the decision away from consumer. Then, there is the social nature of drinking.
“When you’re purchasing something in private, there’s nobody looking over your shoulder to hold you accountable,” King said. However, beer may be purchased to drink with friends so there could be more social pressure, he said.
The situation with Bud Light may have put companies more on edge. Target has carried Pride month apparel for years, but when confronted with pushback this year, the retailer moved product in some stores to other areas or removed it all together, citing concerns for worker safety. But this decision also carries a risk. Target could wind up offending both sides of the issue.
“The fact that a small group of extremists are threatening disgusting and harsh violence in response to Target continuing its long-standing tradition of offering products for everyone should be a wake-up call for consumers and is a reminder that LGBTQ people, venues, and events are being attacked with threats and violence like never before,” said Sarah Kate Ellis, president and CEO of GLAAD, a LGBTQ media advocacy group, in a written statement.
The group has pushed for Target to put the Pride merchandise back on the sales floor and online, and do what it can to protect workers in the stores. Target has also received bomb threats from those claiming to support the LGBT community, who wanted the merchandise retured to the store, according to media reports.
Target’s stock hit a 52-week low on Thursday.
Target’s stock has fallen about 10% since news broke on May 24. But shares were already trending lower after the retailer’s earnings report showed weakness in parts of its business.
Meanwhile, both VF Corp. and Kohl’s shares seemed to be bouncing back on Friday. After recovering some lost ground, the North Face parent is down about 9% since it launched its “Summer of Pride” ad on May 23. Kohl’s shares rose nearly 12% on Friday, recouping nearly all of the ground it lost. But the stock sank as low as $17.89 on Thursday, its lowest level since May 22, 2020.
VF Corp. shares traded as low as $16.77 on Thursday.
Target’s stock sank to a 52-week low of $126.75 on Thursday, following a downgrade by JPMorgan to neutral. While analyst Christopher Horvers cited a weakening consumer as the primary reason that he expects tougher times ahead for the discount retailer, the recent controversies were mentioned as a factor in the decision. Horvers slashed his price target to $144 from $182.
Meanwhile, Wells Fargo analyst Edward Kelly said the recent pullback in the stock’s price might have been seen as a buying opportunity prior to this issue.
“The current stock price could have been a good entry point, but it’s hard to step in front of the current uncertainty,” Kelly wrote in a research note Thursday.
Kelly said that he has seen “early evidence of some near-term financial impact.” Among the factors he cited was Placer.ai data that showed foot traffic at Target stores was soft in the week ended May 28.
“Traffic has been a key bright spot for TGT as it struggled with margin issues, and a slowdown would be negative. It remains to be seen how long any impact would last,” Kelly said.
Even with the risk, companies will continue to tie brands to social issues because it fosters a deeper relationship with customers.
“If you build your argument to consumers only on the stuff, only on the features, only the functional utility of what it is that you do, then competitors can come in and offer that, just a copy of that, and claim that they have a better mousetrap,” said Americus Reed, a professor of marketing at the University of Pennsylvania, in an interview Wednesday on CNBC’s “Power Lunch.”
Kohl’s shares on Thursday hit a low of $17.89, the stock’s lowest level since May 22, 2020, when it traded as low as $17.19.
“So a bit of … why it is so attractive to align with purpose and these sorts of issues is that … it gives you an opportunity to link more deeply with consumers,” Reed said. Even though it can go awry, the upside can be powerful because the connection “has powerful gravitational pull,” he said.
In fact, those strong relationships are usually why boycotts fail to hurt a company’s sales longer term, according to King. He said research has shown that for every consumer that stops buying a product another shopper will begin a “buycott” by purchasing items to show their support for the opposite side of the issue.
Still, with threats coming from both sides of the issue, and stocks suffering sharp selloffs, companies may proceed a bit more cautiously.
“They may internally continue to embrace those values as important to their culture and identity, but externally they may be more risk adverse in terms of how they communicate those values,” King said.
—CNBC’s Christopher Hayes contributed to this report.
A customer passes by the brewery section at an H-E-B grocery store on March 02, 2023 in Austin, Texas. Budweiser owner AB InBev is the largest brewer in the world.
Brandon Bell | Getty Images News | Getty Images
Budweiser-owner Anheuser-Busch InBev on Thursday reported a jump in profit for the first quarter, saying the beer industry had proved resilient despite inflationary pressures.
The Belgium-based brewing giant — the biggest in the world — reported core profit of $4.76 billion, up by 13.6% from the first quarter of 2022. The rise compared to a 5.6% consensus estimate published by the company. Underlying profit attributable to shareholders came in at $1.3 billion, up from $1.2 billion during the same quarter last year.
Revenues rose 13.2% year-on-year to $14.2 billion, just ahead of a forecast of $14.1 billion, according to Refinitiv data.
The company said this was achieved through “pricing actions” and nudging customers towards its premium products, as sales volumes rose by just 0.9% over the period. Own-beer volumes were 0.4% higher, and non-beer volumes were up 3.6%.
Revenues from non-alcoholic beers were up by 30% in the quarter. The firm also said sales growth in its core beer portfolio was strong outside of the U.S., its biggest market, boosted by the return of consumer demand in China and continued growth in India.
AB InBev also owns brands including Beck’s, Corona and Stella Artois.
“The beer industry performance improved in 1Q23, demonstrating resilience even in the context of an ongoing inflationary environment,” the company said in its earnings statement.
Earlier this week, AB InBev’s rival Molson Coors told a similar story with its first-quarter results, beating profit forecasts as customers continued to buy its products despite higher prices.
In April — following the reporting period — AB InBev faced online backlash against its Bud Light brand after a brief social media partnership with a transgender influencer. Online personalities called for a boycott of the beer, while others said AB InBev did not show enough subsequent support for the TikTok star, Dylan Mulvaney.
Later in the month, the company said that it worked “with hundreds of influencers across our brands” as one of many ways to “authentically connect with audiences across various demographics.”
AB InBev shares rose 0.5% in early Thursday trade.
The marketing executive who oversaw a partnership between Bud Light and a transgender influencer is taking a leave of absence after it snowballed into cries for boycotts from some angry customers, according to media reports.
Alissa Heinerscheid, Bud Light’s vice president of marketing, will be replaced by Todd Allen, most recently global vice president of Budweiser, according to reports from Beer Business Daily and Ad Age.
A spokesperson for Bud Light’s parent company, Anheuser-Busch InBev, on Saturday did not directly confirm the leave of absence but said Allen as vice president of Bud Light will report directly to Benoit Garbe, U.S. chief marketing officer. The company also made streamlining changes so that its most senior marketers are more closely connected to all of its brand activities.
The partnership between the blue-emblazoned beer brand and Dylan Mulvaney, who has more than 10.8 million followers on social media, hit the internet on April 1. That’s when Mulvaney posted a video on Instagram showing herself cracking open a can of Bud Light, one with the hashtag #budlightpartner.
Companies have broadened efforts to attract customers and employees across racial, cultural and other lines as the country continues to diversify. In many cases, their own shareholders have pushed them to become more inclusive in hopes of improved returns.
Earlier this month, Bud Light said, “Anheuser-Busch works with hundreds of influencers across our brands as one of many ways to authentically connect with audiences across various demographics.”
But the Bud Light-Mulvaney partnership quickly brought an onslaught of criticism from people who said they’re angry about the world going “woke.” Musician Kid Rock posted a video of himself shooting cans of Bud Light with a rifle.
Anheuser-Busch InBev’s stock that trades in the United States is down 1.8% since Mulvaney’s April 1 video showing herself taking a sip of Bud Light. But the stock is still up 9.1% for the year so far, more than the broad U.S. stock market, as measured by the S&P 500.
