In a recent report, beverage giant Anheuser-Busch revealed a significant drop in organic revenue in North America, with estimates suggesting a loss of over one billion dollars in sales. According to company data reviewed by CNN, the company's parent brand, Bud Light, faced boycotts from conservatives following its partnership with trans-identifying influencer Dylan Mulvaney.

Anheuser-Busch's annual report highlighted that their growth was hindered by the performance of their US business. With a revenue decline of 17.3% in the fourth quarter, Bud Light, in particular, experienced a significant decrease in sales-to-retailers (STRs) by 12.1%. The company attributed this decline to the volume decrease of Bud Light, leading to a sales-to-wholesalers (STWs) decline of 16.1% as shipments lagged behind stronger depletions in December.

Although the company saw strong returns globally, the impact on the US market was evident. Anheuser-Busch acknowledged that American beer sales were gradually picking up, albeit at a slow pace. The report stated that the mainstream beer revenues had declined, while their above core beer megabrands continued to grow steadily.

The partnership between Bud Light and Dylan Mulvaney received considerable backlash. The boycotts initiated by conservatives resulted in a plummet in sales for Bud Light. As a consequence, Anheuser-Busch had to lay off several hundred employees and part ways with top marketers to mitigate the financial impact.

Alongside the boycotts, Bud Light faced a legal battle regarding the promotion of beer by Mulvaney, who also presented on social media as an entertainer for kids. U.S. Senators Ted Cruz (R-TX) and Marsha Blackburn (R-TN) sent a letter on May 17, 2023, urging a formal review by the Beer Institute, the beer industry's self-regulating body. The inquiry focused on whether Bud Light had violated industry standards by marketing alcohol to minors through its ads with Mulvaney.

The scrutiny prompted the revision of the beer industry's Advertising and Marketing Code, which now includes new policies for social media influencers. The guidelines now state that posts by social media influencers must be placed where at least 73.8% of the audience is of legal drinking age. Furthermore, if available, "age-gating measures" must be implemented to ensure compliance with the legal drinking age regulations.

While Anheuser-Busch remains hopeful for gradual recovery in the US market, the repercussions of the conservative boycotts and the legal battle have undoubtedly affected the company's financial performance. The industry giant must navigate these challenges carefully to regain the trust of consumers and restore its standing in the highly competitive market.