Posted on 08/01/2023 9:40:52 AM PDT by Morgana
Bud Light has already successfully rebranded itself. This is what the media and AB don't yet understand. It's NOT a boycott. It is a successful rebrand, and consumers simply do not what what they rebranded to.
They won’t kill the brand entirely but a “new” beer that’s basically the same thing will be launched
This really doesn't matter. It took decades of programming and hundreds of millions of dollars to convince enough people to buy Bud Light to make it the #1 brand in the nation.
All of that has been completely flushed down the drain. I suspect that pushing "Bud Light 2.0" will be difficult, if not impossible for the company.
I think it's considerably more. Wonder if they are going to continue pushing that number in a couple of days when they have to release quarterly figures. I'm sure they'll do everything they can to hide the decline, but you can't really prop up a brand solely with illegals which is pretty much what we're seeing.
In the old days the executive suite would have been cleaned out—top to bottom—with this kind of disaster—whatever the exact numbers are.
The refusal to do that speaks volumes about the company and what it thinks of its customers.
“A fall of 28% is lethal.”
AB is in no danger of going out of business.
BL has taken a beating no doubt, and likely will never recover from this.. however AB is not 1 single beer. Yes, this will cause them pain, but they aren’t going away.
$60 Billion in worldwide sales across all brands is not going away because 1 of those brand (big in the US as it may be) is taking a beating.
Bud Light was selling about 25,000,000 barrels of beer a year prior to this. If it has dropped 30% that means they are still selling nearly 17,000,000 barrels of beer a year.. that’s not chump change. It does mean they are going to have to resize their staff and facilities and operations, but this isn’t AB lost 1/3 of its revenue, it lost a 1/3 of its revenue on 1 brand, even though its their biggest brand in the US.
Don’t have exact numbers, but best I can find is even now they are selling about $70,000,000 dollars worth of BL every week. That’s about 3.6 BILLION a year in revenues... so if that’s off 30%, that means AB INBev about 1.2 ish Billion in revenue over this... certainly not chump change, but out of 60 Billion in total revenue, it represents a revenue decline of less than 1/2 a percent overall to the parent organization.
I agree that BL as a brand will likely never recover its #1 status over this fiasco, but its not going away and ABINBEV is certainly not going out of business over it.
Woops bad math, the losses are about 2% not .5% at the top of the house... definitely hurt, but not going to put the company out of business.
I'm not expecting it to put the parent company out of business. I do, however, expect there will be enough pain inflicted for them to notice.
From what I understand AB releases financials today. Should be interesting.
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