Posted on 05/04/2023 1:38:45 PM PDT by dware
That is an interesting comment.
It defies the claims of that woman who was managing the brand who said the brand had been in long term decline and that something new was needed to reverse the trajectory.
Her strategy seems to have backfired and accelerated the deterioration. The brand now faces several years of work to claw its way back to even - if that can be done.
Doubling down on homo ideation doesn't seem like a winning cheap beer strategy.
But if they reverse course with too much military, flags, horses, and patriotism they run the risk of making the deep state mad. That would be disastrous for the Bud makers.
If even one homosexual were to call and tell the CEO of Disney to stop all AB sales no doubt that would happen. Same thing with NASCAR. Same thing with 490 of the top 500 woke corporations - they could be commanded to wage war on AB.
Looks like Bud Light is destined to become the Royal Crown Cola of alcohol.
Who remotely has state AB was going to go out of business over this?
I don’t know anyone who has even stated that.
Yes Bud Light makes up about 36% of their sales volume, but the company had over 57 BILLION dollars in sales last year overall.
BL sales while falling are never going to be zero, so 36% of 57 is about 20.5 Billion... and lets say when its all said and done Bud Light sells 50% less beer due to this, that means they lose $10.25 Billion in revenue.. not chump change at all, but they still will be generating nearly 50 BILLION in revenue... They would need to adjust to that loss, but its not going to put them out of business.
I've pointed out, they are in damage control, as they should be. They will be in damage control for a time, and when they emerge, they will be just fine.
“Something to consider is how they dominate markets with swill that anyone with any respect for their body would not ingest!”
I suspect it comes down to two things:
a) price point... if you make something cheap enough, people buy it no matter how bad it is
and
b) marketing
Define “fine”. Will the go out of business. No. Will they not grow as much (actually shrink) yes. And in business that is terrible. There won’t be any bonuses and people will get fired.
Not sure what you expected but if Bud Light falls from being the #1 beer in the US that is huge.
To be honest, I doubt we will see much, if any effect on the stock until July. It will slump from a short time of bad sales, but will rebound when sales rebound. Eventually, sales will rebound and their marketing exec will return from her leave of absence and nothing will change overall and they will continue selling really crappy beer!
How many outright woke businesses have been completely shut down by Conservative boycotts in history?
Americans have very, very short attention spans.
That’s still a pile of $$. It’s a substantial percentage of their cash flow. It’s almost equal to their 2020 free cash flow.
It’s somewhat absurd and kind of daft to think there is anything positive about that kind of loss. It’s very bad business by any metric. It’s nearly a third of their annualized gross profit too.
Their self-inflicted “cluster F” has jacked with a lot of people and businesses who support Bud Light. Logistical companies, distributors, retailers, etc. Yea, yea, the stock price is groovy for now, but the long-term impact remains to be seen.
As far as a “write off”? I wonder if you have the same understanding of what that is than these folks do:
I’m down for that! I will be watching. The whole situation fascinates me, mostly because that marketing exec really, truly screwed up. Being in sales and marketing myself, I question how someone could be so stupid as to completely alienate all but about 3% of their customer base.
Yes. Any predictions? Normally I’d say they’d go full rainbow June 1, but man, that’s a huge risk right now. Then again, they’ve only suspended and not fired that Heinershneid biimbo.
My prediction is this: a post at the beginning of month acknowledging pride but otherwise the rainbows off their social media.
What will really be interesting to see how the rest of the beer industry’s social media reacts. You know A-B will be rooting for them to go full beaming rainbows everywhere to spread stink around.
You’re missing the point.
If you expect to make 20 dollars, but only make 10, you still make a profit, not a loss. They can’t write off 7 billion dollars in lost sales. It doesn’t work like that.
Why make that explanation/apology today? After all, don’t sweat it, man! Why offer to mitigate the costs to the distributors? Why promise a 3x increase in marketing, send two execs away on administrative leave, and then promise more vigilance over future marketing campaigns?
I think the desire to not be seen as weak goes right to the core of a man's soul.
Men drink beer with other men. Budlight has become an insinuation of weakness and a punchline.
I think this thing has legs.
They got broadsided and trashed, along with their name. I agree. I hope it gets worse for them.
I want them to be fine. They made a big mistake and seem to have learned their lesson. Mulvaney Light is down 26% so our point has been made and A B’s actions show the lesson has been accepted.
It is an employer of thousands of Americans so let’s hope this comes to an end soon.
I never said it was a positive thing. I said if there's going to be a slump, it won't be until July when their 2nd quarter earnings are reported. There's no doubt that they lost sales. But by July, we will be 2 or 3 new shiny things out from this incident, most people will forget all about it. Now, people that think like we do, well, we won't forget and we will likely not ever buy Bud Light again.
As I mentioned previously, I haven't bought Bud Light in many years, simply because it's a crappy beer and I prefer local craft beers when I'm not drinking my own home brew. We're a small but vocal minority, however. That's not to say that mainstream America doesn't share many of our beliefs, just that we have short attention spans and forgive easily. Well, mainstream America, anyhow. Again, you and I are a different breed.
AB Inbev stock will be impacted, just as their sales have been impacted. It will be short lived, however, and they will ultimately make a comeback and they will be just fine.
I would love to see them fail, but as I've asked others, how many companies have been outright shut down due to Conservative boycotts?
A lot of people probably switched from Bud Light to Budweiser without thinking beyond that.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.