Shares in drink and brewing company Anheuser-Busch InBev remain low as sales for its Bud Light beer continue to decline. AB InBev’s shares declined by 4.71% during pretrading on Wednesday.
Following widespread backlash against the advertising campaign with transgender influencer Dylan Mulvaney on April 1, Bud Light sales have continued to fall in what has already been a challenging year for the beer brand. In the week ending May 20, sales were down by 24.3% on a year-to-year basis while declining by 21.6% compared to the previous week. Since the release of Mulvaney’s social media post, AB InBev’s shares have plunged by 18%.
Citi analyst Simon Hales observed that the drop in sales could in fact translate into a buying opportunity for investors. “There continues to be contagion to the wider AB InBev brand portfolio, with Budweiser, Busch and Michelob all weak again,” Hales wrote in a note to investors.
“Meanwhile, Coors Light continue to see share gains accelerate. The latest data shows little sign that consumers are moving on from the Bud Light controversy, and we expect these issues will continue to weigh on investor sentiment. Nevertheless, we believe the pullback creates an interesting entry point for longer-term investors.”