Anheuser-Busch InBev, the world’s largest brewer, is facing a decline in sales of its Bud Light beer, leading to the resignation of its US chief marketing officer, Benoit Garbe. The company announced that Garbe will be stepping down at the end of the year to pursue new opportunities. This comes as Anheuser-Busch reported a 13.5% drop in third-quarter US revenue per 100 liters, a key metric for beer sales.
The decline in Bud Light sales can be attributed to the backlash the brand faced after partnering with transgender influencer Dylan Mulvaney and mishandling the resulting controversy. Many Bud Light customers abandoned the brand as a result. In response to the decline, the company has made changes to its executive team, with Kyle Norrington, the US chief commercial officer, taking over the marketing responsibilities.
Anheuser-Busch CEO Brendan Whitworth stated that the executive reshuffling aims to streamline the organization and empower top commercial leaders to drive the business forward. The company’s sales to US retailers decreased by nearly 17%, primarily due to the decline in Bud Light sales. To combat this, Anheuser-Busch has made deals with wholesalers, provided financial incentives to distributors, and increased marketing spend on the brand. However, these efforts have negatively impacted the company’s bottom line, contributing to a 29% decline in adjusted US earnings.
Bud Light, once the top-selling American beer, lost its title to rival Modelo following its association with Mulvaney. Despite this setback, Anheuser-Busch is determined to reverse the decline and is taking steps to do so, including the departure of its CMO. According to the company’s research, over 40% of lapsed Bud Light customers are open to giving the brand another chance, providing some optimism for its future performance.
AB InBev CEO Michel Doukeris expressed confidence in the brand’s trajectory during a recent analyst call, stating that the company has a clear understanding of what needs to be done to improve Bud Light’s performance. Doukeris highlighted that the brand’s performance has already shown signs of improvement, and he believes they are moving in the right direction.
The resignation of Benoit Garbe and the company’s efforts to address the decline in Bud Light sales demonstrate Anheuser-Busch’s commitment to revitalizing the brand and winning back customers.
