How to Profit from the Bud Light Boycott

by Andrew Zatlin May 23, 2023 11:19 am ET

In an attempt to "go woke," Bud Light misfired.

Now, consumers are boycotting the brand, and sales are plummeting.

The thing is, these consumers haven't stopped drinking beer...

They've simply switched to another brand – and that's where our chance to profit presents itself.

For a transcript of this video, see below. This transcript has been lightly edited for length and clarity.

How to Profit from the Bud Light Boycott

Imagine you're the CEO of a $100 billion beer company.

Your product is popular, consumers are loyal, and sales are booming – at least, they were.

Now, sales are falling 25% week-over-week. Meanwhile, your phone is ringing off the hook, with a slew of angry customers on the other end.

If you're the CEO of Bud Light, this nightmare scenario has become a reality.

You see, Bud Light recently made a socially-progressive decision, one that some might refer to as "going woke." But its decision backfired in a big way. And now, the company is struggling.

The thing is, its loss is our gain. Stick with me to learn why...

The Power of Influencers

In case you're unfamiliar with this story, let me get you up to speed.

Any company – beer brand or otherwise – is always on the lookout for new markets and new customers. And most will align with a cause if it means attracting new business.

These days, reaching new customers often means tapping into the world of influencers — Internet "celebrities" who have significant followings on social-media platforms.

Dylan Mulvaney is one such influencer. She has more than 10 million followers on TikTok and gained her popularity by chronicling her gender-transition journey.

Ten million followers is a big audience. And keep in mind, most are probably fairly progressive, and likely not longtime Bud Light drinkers.

At first blush, this seemed like a perfect opportunity for Bud Light. It could use Mulvaney to promote the brand to a big group of potential customers. This wasn't Bud Light trying to advocate for a specific social agenda – it simply wanted to increase sales.

What could go wrong?

Bud Light's Backfire

It turns out, Bud Light's collaboration with Mulvaney backfired. Essentially, many of its current customers were upset that the company collaborated with Mulvaney, and they decided to boycott Bud Light.

Soon after, the company lost 30% of its customers. Bud Light was generating about $100 million in sales a week. That fell to $70 million.

Furthermore, the market cap of its parent company, Anheuser-Busch (BUD), fell by $10 billion:

Meanwhile, the consumers Bud Light was trying to target – i.e., Mulvaney's followers – didn't become Bud Light drinkers.

Simply put, this plan backfired in a big way. And now the company is reeling.

Now, social or political views aside, this story raises a couple of interesting points...

Going Woke = Going Broke?

First, the left is trying to paint what's happening to Bud Light as an instance of homophobia.

But their focus should be here instead: If companies realize that these types of initiatives don't add to their bottom line – socially progressive, though they may be – they'll simply stop doing them entirely.

Remember, campaigns that appear to be in support of a particular cause or group are merely attempts to make more money. Any goodwill they may create isn't enough to outweigh potential losses in sales.

Second, keep in mind that all those Bud Light consumers who pledged to boycott the brand probably didn't stop drinking beer altogether. They simply switched brands.

This is important to understand. As more companies attempt to "go woke," many attempts will backfire. And they'll become losers in the never-ending battle to capture consumers.

Meanwhile, their competitors – typically, the ones that stay focused on business and not socially-conscious campaigns – will scoop up new customers. And it's these winners we want to invest in.

If you're a "Pro" subscriber, I'll reveal who I believe the big winner will be from Bud Light's fallout, so make sure you're subscribed!

We're in it to win it. Zatlin out.