Alissa Heinerscheid is taking a leave of absence as marketing vice president for Anheuser-Busch InBev’s Bud Light brand after calls to boycott the brand over its work with transgender social media influencer Dylan Mulvaney.
Heinerscheid’s boss Daniel Blake, who oversees marketing for Anheuser-Busch’s mainstream brands Budweiser and Bud Light, also took a leave of absence, a company spokeswoman told The Wall Street Journal.
Heinerscheid, who has been in the role since June 2022, will be replaced by Todd Allen, the company told Barron’s in an email. Blake has worked at Anheuser-Busch for nearly nine years. The company has not said who would replace him.
An Anheuser-Busch InBev (ticker: BUD) spokesperson told Barron’s it has communicated some next steps with its employees and with wholesaler partners, including that “the safety and welfare of our employees and our partners is our top priority,” and that Allen has been appointed vice president of Bud Light, reporting directly to Benoit Garbe, U.S. chief marketing officer.
“Third, we have made some adjustments to streamline the structure of our marketing function to reduce layers so that our most senior marketers are more closely connected to every aspect of our brands activities,” the company said in the email. “These steps will help us maintain focus on the things we do best: brewing great beer for all consumers, while always making a positive impact in our communities and on our country.”
Mulvaney, who has 10.8 million followers on social media and has worked with other high-profile brands such as Nike (NKE), posted a video of herself on Instagram on April 1 cracking open a can of Bud Light and using the hashtag #budlightpartner. In the video, she showed off a customized can of Bud Light that had her photo on it, to celebrate her 365th day of womanhood.
That post sparked praise and outrage, with conservative commentators calling for a boycott of the beer. Musician Kid Rock shared a video firing a rifle at cans of Bud Light.
Others applauded the brand for being inclusive, and Mulvaney gained even more social media followers. The head of Bud Light said in a statement that the company “never intended to be part of a discussion that divides people. We are in the business of bringing people together over a beer.”
Citigroup analyst Simon Hales wrote at the time that “We think the recent backlash in some parts of the U.S. to Bud Light’s new advertising campaign with Dylan Mulvaney is overdone.”
But sales of Bud Light fell 10.7% for the week ended April 8, Beer Business Daily reported.
Then Heinerscheid’s own remarks surfaced about changing Bud Light’s marketing approach. In a podcast made before the Mulvaney controversy, she called previous marketing efforts “fratty” and “out of touch,” according to AdAge.
The Journal quoted Heinerscheid’s comments from a podcast earlier this year, saying: “I had a really clear job to do when I took over Bud Light. It was, this brand is in decline, it’s been in decline for a really long time, and if we do not attract young drinkers to come and drink this brand, there will be no future for Bud Light.”
Anheuser-Busch InBev’s shares have risen 9.1% so far ths year, outpacing the S&P 500’s 7.7% increase and shares of other beverage makers, including Constellation Brands (STZ), down 2.3% this year, Boston Beer Co. (SAM), down 2.2%, and Diageo PLC (DEO), up 6%.
But shares at rival Molson Coors Beverage‘s (TAP), whose U.S. brands include Miller Lite, Coors Light, Carling, Madrí, Simply Spiked, Topo Chico, and Staropramen, are up 13.2% this year.
TD Cowen analysts wrote in a research note that while the first quarter is a seasonally small one for
Molson Coors,
its beer sales as tracked by Nielsen are strong, and its stock is “showing short term benefits from Bud Light consumer boycotts.”
Write to Janet H. Cho at [email protected]
Read the full article here