Beer giant Anheuser-Busch InBev saw its U.S. revenue decline by 9.1 percent in the first quarter of 2024, as the boycott of Bud Light continued to hit sales.
The world's largest brewery, which also makes brands like Corona and Stella Artois, reported that sales to retailers had fallen nearly 14 percent "primarily due to the volume decline of Bud Light." Last year, the company faced a backlash to a Bud Light promotional campaign that included a partnership with transgender influencer Dylan Mulvaney.
The campaign, which aimed to celebrate diversity and inclusion, unexpectedly sparked controversy among some of Bud Light's customers. This resulted in decreased sales as consumers opted to switch to other brands as a form of protest.
Bud Light eventually lost its spot as the best-selling beer in the U.S., dropping to second place behind Modelo. That beer is made by Mexican brewery Grupo Modelo, which is owned by AB InBev.
AB InBev didn't immediately respond to a request for comment.
Despite the turmoil in the U.S., the Belgium-based brewer's global performance remained strong. AB InBev reported an overall revenue increase of 2.6 percent, largely attributed to a jump in sales of Corona, which grew by 15.5 percent outside of its home market, Mexico.
Sales volumes increased in Europe and Mexico in part thanks to an earlier Easter, the company said.
The beermaker also cited its diverse product portfolio of drinks, beyond its famous beer brands, as a reason for revenue growth.
The company reported an underlying profit for the quarter of $1.51 billion, compared to $1.31 billion in the same period last year.
"The strength of the beer category, our diversified global footprint and the continued momentum of our megabrands delivered another quarter of broad-based top- and bottom-line growth," CEO Michel Doukeris said in a statement. "We are encouraged by our results to start the year, and the consistent execution by our teams and partners reinforces our confidence in delivering on our 2024 growth ambitions."
The Budweiser parent said it expects its 2024 earnings before interest, taxes, depreciation and amortization (EBIDTA) to grow between 4 percent and 8 percent, in line with its medium-term outlook.
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Shares in the brewing behemoth rose more than 4 percent in Europe on Wednesday after the results were announced. The stock is up about 0.4 percent over the past year.
The company also trades on the New York Stock Exchange under the ticker symbol BUD. It has a market capitalization of more than $100 billion and accounts for roughly 28 percent of the world's beer production.
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Daniel Orton is an editor on the live news team at Newsweek, based in London, UK. He was previously Video ... Read more
