Anheuser-Busch InBev, the famous brewing company, is set to make job cuts in the U.S. following a significant drop in sales. The decline in sales is still affecting one of their most popular products, Bud Light.
Workforce Reductions
According to Brewbound, an industry publication, the company plans to reduce its U.S. workforce by 2%. Currently employing 19,000 individuals, the company has assured that front-line workers such as warehouse staff and field representatives will not be affected. However, Anheuser-Busch InBev has chosen not to specifically mention the slumping Bud Light sales as the primary reason behind these layoffs.
Bud Light’s Sales Decline
Bud Light, one of Anheuser-Busch InBev’s flagship products, has suffered a significant sales decline due to a social media promotion gone wrong with Dylan Mulvaney.
Recent data from Nielsen U.S. beer analytics reveals that the brewer’s volumes plummeted by 15.3% year-over-year in the four weeks ending July 15. This stands in stark contrast to the broader U.S. beer category, which experienced a milder decline of 2.7%.
During the same period, Bud Light sales skidded an alarming 29.8%, and Budweiser volumes fell by 14%. On the other hand, Coors Light sales rose by 17%, Miller Lite volumes increased by 12.5%, and Yuengling sales witnessed an impressive surge of 38%.
Stock Performance
Anheuser-Busch InBev’s U.S.-listed shares (BUD) have seen a 2% decrease in value this year. However, in the company’s home market of Belgium, shares (ABI) rose by 0.6% on Thursday.