Kid Rock Ends Boycott of Bud Light

AB InBev Recovers from Marketing Campaign Misstep

In a surprising turn of events, Kid Rock announced that he is ending his boycott of Bud Light, signaling a possible reconciliation between the musician and the beer company. This decision comes after AB InBev, the parent company of Bud Light, suffered significant losses from its ill-fated partnership with transgender influencer Dylan Mulvaney.

Last week, Kid Rock spoke about the issue in an interview with Tucker Carlson. He acknowledged that AB InBev deserved the backlash it received for its marketing campaign, but he now believes that it is time to move on. While expressing his hope that other companies take note of consumer dissatisfaction, Kid Rock emphasized that the punishment inflicted on AB InBev did not match the crime.

AB InBev has yet to comment on Kid Rock's statement.

When Bud Light initially partnered with Mulvaney in April, Kid Rock was one of the most vocal critics, calling for a boycott. Many other conservative voices joined in the criticism, making AB InBev a primary target for the growing anti-woke movement.

However, even beyond the political aspect, investors were dismayed by AB InBev's mishandling of the controversy. The company's response was marred by mixed messages, executive departures, and a flawed marketing strategy that experts widely criticized.

As a result, Bud Light experienced a decline in sales and lost its position as the nation's favorite beer.

AB InBev's Resilience in the Face of Setbacks

Despite the setback caused by the controversy surrounding 's actions, it did not prove to be a devastating blow for AB InBev. This is due to the fact that the U.S. market represents only a small fraction of the company's overall business. While some of the brewer's other brands did suffer, the impact was not felt on a global scale.

The core message emphasized by Rock, which highlights the importance of proportional consequences for mistakes, resonates with many. AB InBev's management has revealed that their research indicates a significant percentage of former Bud Light consumers would be open to returning to the brand.

Although Rock's remarks may not be particularly detrimental to AB InBev, they come at a time when the company's American depositary receipts were already approaching their peak levels for the year.

Since the beginning of the year, AB InBev's stock has experienced a 5% increase. Although this growth rate falls behind the double-digit gains witnessed by the broader market and industry peers such as Molson Coors Brewing, it is still an impressive recovery. Currently trading at $62.57, AB InBev has recovered more than 21% from its lowest point of $51.66 last autumn. With just a 7.2% increase, it could even reach its 52-week high of $67.09.

It is worth noting that AB InBev's shares could potentially achieve even greater gains in 2023 without the Mulvaney controversy. Nonetheless, it appears that, much like Kid Rock, the market has largely moved on from this issue.