The market capitalization of Bud Light's parent company has decreased by over $6 billion following the announcement of its collaboration with a divisive transgender influencer on the internet.
Since its announcement on April 2nd, the partnership between the brand and 26-year-old Dylan Mulvaney has triggered anger and demands for a boycott. It seems that Anheuser-Busch is now feeling the effects of the backlash, with financial repercussions becoming evident.
Before the announcement, shares of the Belgian brewer had been trading around $66, a level that had not been seen since before the pandemic.
At the close of trading on Wednesday, the beer company's stock was valued at approximately $63, resulting in a reduction of more than 5 percent in Anheuser-Busch's overall share worth, commonly referred to as 'market capitalization.'
Anheuser-Busch's current market capitalization is $125.73 billion, whereas six days ago it was $132.38 billion. Despite the backlash, the company's management is standing by their partnership with Dylan Mulvaney, a vocal activist with a social media following of over 10 million.
Anheuser-Busch's recent decline in stock value follows a short-lived increase in the latter half of March. This uptick was part of a gradual recovery toward the company's pre-March 2020 share prices of over $80.
Since January, shares had been hovering around the resistance level of $60 until March 20th of this year.
By March 31st, the company's stock had surged to $66.73, a level that had not been reached in three years.
The company's shares have since declined, and this drop coincided almost exactly with the announcement of the partnership between Mulvaney and Anheuser-Busch's top-selling beer brand.
Bud Light, the top-selling beer in the country, marked the beginning of their collaboration with Mulvaney, an influencer who began transitioning from male to female in 2021, by sending her custom cans adorned with her image and pro-LGBTQ language. These cans were created to celebrate Mulvaney being a woman for over a year.
The present, which Mulvaney promoted in a series of sponsored posts, marked the beginning of the partnership, which has now been confirmed. A subsequent video was released, featuring a nude Mulvaney, further cementing the collaboration.
Mulvaney, who has almost 11 million followers, caused a significant backlash when she appeared in a bathtub, drinking a can of Bud Light in front of her audience. This act played a significant role in triggering the ongoing protest against the partnership, which has resulted in several individuals completely boycotting the brand.
Critics, including Kid Rock, have accused the brand of pandering to the progressive left. In a defiant gesture, Kid Rock filmed himself shooting several cases of Bud Light, highlighting his opposition to the partnership.
Some individuals have claimed responsibility for the recent decline in Anheuser-Busch's value, while others have expressed their disapproval of Mulvaney being chosen as the new face of the brand on social media platforms.
In response to the outcry, Anheuser-Busch, the parent company of Bud Light, was compelled to release an official statement expressing its support for the brand's partnership with Mulvaney. Mulvaney became an internet sensation by documenting her journey of transitioning from male to female in a series of videos.
Last week, the representative shared a statement with multiple news outlets: "Anheuser-Busch works with hundreds of influencers across our brands as one of many ways to authentically connect with audiences across various demographics."
It added: "From time to time, we produce unique commemorative cans for fans and for brand influencers, like Mulvaney. This commemorative can was a gift to celebrate a personal milestone and is not for sale to the general public."
Despite their stance, Anheuser-Busch's doubling down on their decision to partner with Mulvaney seems to have further infuriated customers, and may have contributed to the company's recent market struggles, which largely began at the beginning of this month.
Interestingly, April 3, the day after the official announcement of the Mulvaney partnership, marked the beginning of trading in April.
During a podcast appearance on Tuesday, Mulvaney addressed the strong reaction that has been observed since the partnership was announced, suggesting that her detractors are targeting an easy victim.
"The reason that I think I am so … I'm an easy target is because I'm so new to this." Mulvaney made this comment during an appearance on Rosie O'Donnell's popular podcast, "Onward with Rosie O'Donnell."
"I think going after a trans woman that's been doing this for like 20 years is a lot more difficult. I think maybe they think that there's some sort of chance with me … But what is their goal?' "
According to Mulvaney, these individuals do not comprehend her, and any action or statement that she makes is twisted and exploited to criticize her. She believes that it is regrettable because her intentions are always positive.
"It's trying to connect with others that maybe don't understand me. It's to make people laugh or to make a kid feel seen."
Mulvaney, who has previously worked with brands like Kate Spade, Crest, and InstaCart, shared with reporters in Hollywood that she is "thriving" and "doing great" when asked about the backlash surrounding her partnership with Bud Light.
When questioned about the possibility of the recent backlash subsiding and whether transgender influencers are the future, the TikTok sensation, who had just started her position as the beer brand's ambassador, confidently responded with a "yes."
