ST. LOUIS, MO – Anheuser-Busch InBev, the parent company of Bud Light, faced a significant decrease in revenue in the United States during the third quarter. The beer brand suffered after its controversial partnership with transgender activist Dylan Mulvaney earlier this year, leading to a boycott and a decline in sales. Sales of Bud Light began to plummet in April when the brand created custom beer cans for Mulvaney to celebrate “365 days of girlhood.” The negative response to this move, coupled with comments from Bud Light’s marketing vice president, prompted consumers to shun the brand. As a result, the company reported a 13.5% decline in U.S. revenue and a 17.1% decrease in North American sales volume during the third quarter.

This decline in sales comes after Bud Light lost its position as the best-selling beer in the United States to Modelo Especial, owned by Constellation Brands, in the previous quarter. In contrast, AB InBev experienced growth in roughly 80% of its global markets outside of North America, including the Middle Americas and Africa. Despite the challenging market conditions, AB InBev strives to rebuild the Bud Light brand’s image in North America.

As part of their efforts, AB InBev secured a six-year deal with the Ultimate Fighting Championship (UFC) to make Bud Light the official beer partner. Starting in 2024, the Bud Light brand will have a significant presence in UFC’s content and broadcasts. The CEO of UFC, Dana White, emphasized that while this agreement is financially substantial, the decision was motivated by the alignment of values between the organizations. White acknowledged the controversy surrounding Bud Light but highlighted the company’s positive contributions to the American economy, including its employment of thousands of Americans and support for U.S. farmers.

While AB InBev faces challenges in the U.S. market, the company remains resilient and continues to explore opportunities for growth. As the competition in the beer industry intensifies, AB InBev aims to reclaim Bud Light’s popularity and reinforce its position as a leading brand.

In the third quarter, Anheuser-Busch InBev reported a significant decline in U.S. revenue, mainly attributed to the struggling Bud Light brand and its partnership controversy with transgender activist Dylan Mulvaney. This decline follows Bud Light losing its position as the top-selling beer in the United States to Modelo Especial. However, AB InBev experiences growth in other global markets and plans to revitalize the Bud Light brand’s image through a new partnership with the UFC. Despite the challenges, AB InBev remains committed to its goals and hopes to regain Bud Light’s popularity.