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Bud Light fumbles, but experts say inclusive ads will stay

Bud Light may have fumbled its attempt to broaden its customer base by partnering with a transgender influencer. But experts say inclusive marketing is simply good business 害羞草研究所 and it害羞草研究所檚 here to stay.

Bud Light may have fumbled its attempt to broaden its customer base by partnering with a transgender influencer. But experts say inclusive marketing is simply good business 害羞草研究所 and it害羞草研究所檚 here to stay.

害羞草研究所淎 few years from now, we will look back on this 害羞草研究所榗ontroversy害羞草研究所 with the same embarrassment that we feel when we look back at 害羞草研究所榗ontroversies害羞草研究所 from the past surrounding things like interracial couples in advertising,害羞草研究所 said Sarah Reynolds, the chief marketing officer for the human resources platform HiBob, who identifies as queer.

On April 1, transgender influencer Dylan Mulvaney posted a video of herself cracking open a Bud Light on her Instagram page. She showed off a can with her face on it that Bud Light sent her 害羞草研究所 one of many corporate freebies she gets and shares with her millions of followers.

But unlike the dress from Rent the Runway or the trip to Denmark from skincare brand Ole Henriksen, Bud Light害羞草研究所檚 partnership with Mulvaney angered some customers and hurt sales, while the brand害羞草研究所檚 lack of support for the influencer infuriated the very people it was trying to reach.

Three days after Mulvaney害羞草研究所檚 post, Kid Rock posted a video of himself shooting cases of Bud Light. Shares of Bud Light害羞草研究所檚 parent, AB InBev, temporarily plunged and the company issued a terse statement in response to the controversy.

This week, Anheuser-Busch 害羞草研究所 AB InBev害羞草研究所檚 U.S. subsidiary 害羞草研究所 confirmed that Alissa Heinerscheid, its vice president of marketing, and her boss, Daniel Blake, are . The company won害羞草研究所檛 say when they will return or whether they害羞草研究所檙e being paid.

For some, the partnership went too far at a time when transgender issues 害羞草研究所 including and 害羞草研究所 are a .

害羞草研究所淲hether the issue is trans people or anything else, the majority of consumers are pretty vocal about the fact they don害羞草研究所檛 want brands lecturing them or stuffing politics or social issues down their throat,害羞草研究所 said John Frigo, the head of digital marketing for Best Price Nutrition. 害羞草研究所淚f you sell beer, just make beer and leave it at that.害羞草研究所

But others 害羞草研究所 including Heinerscheid herself 害羞草研究所 say reaching out to younger and more diverse consumers is crucial. According to a 2021 Gallup poll, 21% of people in Generation Z identify as lesbian, gay, bisexual or transgender, compared to 3% of Baby Boomers. Gallup has also found that younger consumers are the most likely to want brands to promote diversity and take a stand on social issues.

害羞草研究所淚 had a really clear job to do when I took over Bud Light. And it was, this brand is in decline. It害羞草研究所檚 been in decline for a very long time. And if we do not attract young drinkers to come and drink this brand, there will be no future for Bud Light,害羞草研究所 Heinerscheid said last month in an episode of Apple害羞草研究所檚 害羞草研究所淢ake Yourself at Home害羞草研究所 podcast.

Bud Light and Mulvaney declined requests to talk to The Associated Press for this story.

Bud Light has long been America害羞草研究所檚 best-selling beer. But its U.S. sales are down 2% so far this year, part of a long-running decline as younger consumers flock to sparking seltzers and other drinks, according to Bump Williams Consulting. Those sales declines in April. The week ending April 15, Bud Light害羞草研究所檚 sales dropped 17% compared to the same week a year ago. Meanwhile, rivals Miller Lite and Coors Lite both saw their sales jump more than 17%.

Marketing experts say it害羞草研究所檚 possible Bud Light害羞草研究所檚 experience will cause other brands to rethink using transgender people in their advertising. Joanna Schwartz, a professor at Georgia College and State University who teaches a course on LGBTQ+ marketing, said companies will still want to reach transgender consumers and their supporters, but might shift to social media and more targeted ads.

害羞草研究所淭hey害羞草研究所檙e walking an extremely fine line. They want to appeal to everyone, but that includes people who don害羞草研究所檛 like each other,害羞草研究所 Schwartz said of Bud Light.

Still, Schwartz said, there are plenty of brands that have successfully featured transgender or non-binary people in their marketing. In 2016, Secret deodorant ran an ad featuring a transgender woman in a bathroom stall, debating whether to walk out and face other women at the sink. Pantene shampoo has run ads and short films supporting transgender people in 2021 as part of its Hair Has No Gender project. And Coca-Cola害羞草研究所檚 2018 Super Bowl ad featured young people using different pronouns to describe themselves.

Thomas Murphy, an associate professor of branding at Clark University, said he tells brands that want to be inclusive to run ads with real people who can talk about the company害羞草研究所檚 efforts.

害羞草研究所淭hey can have employees who say, 害羞草研究所業 love Bud Light. I have worked here for 20 years, there are inclusive programs and I came here because I wanted a company that would embrace me,害羞草研究所櫤π卟菅芯克鶟 he said. 害羞草研究所淲ho couldn害羞草研究所檛 see and hear that person and say, 害羞草研究所榃hat a great company害羞草研究所?害羞草研究所

Instead, Bud Light wound up alienating even transgender customers because it didn害羞草研究所檛 support Mulvaney after the boycott calls began, Schwartz said. Anheuser-Busch CEO Brendan Whitworth issued a statement on April 14 but it didn害羞草研究所檛 specifically mention the controversy.

害羞草研究所淲e never intended to be part of a discussion that divides people,害羞草研究所 Whitworth said.

By comparison, Nike 害羞草研究所 which also faced some boycott threats after sending workout clothes to Mulvaney 害羞草研究所 supported the transgender community in an Instagram post, encouraging followers to be kind and inclusive. Nike didn害羞草研究所檛 respond to requests for comment.

Manveer Mann, an associate professor of marketing at the Feliciano School of Business at Montclair State University, said Bud Light should have anticipated the backlash and had a plan in place to handle it.

Nike learned that lesson in 2018, when it 害羞草研究所 who had protested police brutality by kneeling during the national anthem 害羞草研究所 in its ads. Mann said Nike briefly faced boycott threats, but it stood by Kaepernick and its sales quickly recovered.

Mann thinks Bud Light害羞草研究所檚 sales will ultimately recover, too. But in the meantime, it害羞草研究所檚 alienating everyone, she said.

害羞草研究所淭he communication from Bud Light is not clear. Is this coming from your value set or are these things just trending?害羞草研究所 Mann said. 害羞草研究所淵ou have to know what your values are and what are the values of the customers you are trying to reach.害羞草研究所

Dee-ann Durbin, The Associated Press

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