Bud Light is an American-style light lager beer with a crisp taste and fast finish. But have you ever wondered if this brewing giant can go out of business? Well, recently, this is a million-dollar question among its fans as it has been turmoiled in the headlines saying: Is Bud Light going out of business 2023?
If you are also a fan of this brand, then you are at the right place. In this article, we will understand Bud Light and its financial crisis and unravel the truth about the brand’s going out of business headlines.
What Is The Net Worth Of Bud Light?
As of November 2023, the parent company of Bud Light, Anheuser-Busch InBev, has a market cap of $117.16 billion, which has increased by 16.23% in one year.
Market Cap History
|Year||Market Cap||% Change|
Is Bud Light Going Out Of Business 2023?
Bud Light is a refreshing American-style beer. It is the top beer brand in the United States but recently has experienced a 10% decrease in revenue. The sales of the U.S. retailer also declined by 14%, underperforming the beer industry.
The brewing giant Bud Light is turmoiled in America’s culture wars, ultimately leading to this drop.
However, despite all the controversy, Bud Light is still standing strong and not going out of business in 2023.
What Is Bud Light Boycott Controversy?
The controversy, which says: Boycott Bud Light, started when the company sponsored transgender influencer Dylan Mulvaney.
Dylan Mulvaney is known for documenting her gender transition on social media. She briefly promoted Bud Light in one of her social media posts.
This collaboration created a ruckus among the anti-trans customers of Bud Light and soon gave rise to the boycott campaign.
This also resulted in a decline of $395 million in revenue in North America during the period.
Meanwhile, the beverage giant was also criticized by LGBTQ+ advocates, who said that the company has failed to support Dylan Mulvaney and the broader trans community.
Following this controversy, Mexican lager Modelo Especial dethroned Bud Light as America’s top-selling beer. The title has been held by the company for two decades.
Even the country singer Kid Rock filmed himself shooting the cases of Bud Light. He then ended the video with cusses about the brand and the owner.
Is Bud Light Facing Financial Crisis?
As the company is facing controversy, many social media users are spreading the word that the maker of the Bud Light is going bankrupt.
However, a spokesperson, Anheuser-Busch InBev, said that there’s no truth in the claim that the world’s largest beer maker is on the verge of financial ruin.
The company’s financial position remains sound, with billions of dollars in assets. However, the brand’s sales have been declining but not to the drastic level claimed by social media users.
What Is The Financial Position Of Bud Light?
Bud Light is owned by Anheuser-Busch InBev. So, the given table shows the financial position of Anheuser-Busch InBev:
Financial are in millions of USD.
|Cash & Cash Equivalents||9,997||12,393||15,564||7,330||7,161|
Cash Flow Statement
|Operating Cash Flow||13,298||14,799||14,036||13,396||14,663|
|Investing Cash Flow||-4,620||-5,878||-4,931||-5,073||-3,965|
|Financing Cash Flow||-10,620||-11,598||-8,755||-8,512||-13,945|
|Free Cash Flow||8,138||9,159||9,182||8,222||9,577|
What Is The Future Of Bud Light?
The Boycott of Bud Light has cost the brand its title of top-selling beer in America.
Following this, Marcel Marcondes, the global chief marketing officer of Anheuser-Busch InBev, said that when things get divisive and controversial so easily, it’s a wake-up call for all marketers to be very humble.
Marcondes also struck an optimistic tone about Bud Light. He said it will begin to reconnect with its customers once again.
“It’s coming back,” he said. So, the future of Bad Light is as radiant as it was before.
The rumors about company that says: Is Bud Light going out of business 2023 are completely false. The company is going through some tough times, but it doesn’t mean that it will shut down its entire business.
Amid the Bud Light Boycott controversy, the company decided to limit all the losses to its brand and has offered financial support to its wholesalers from June To December.
So, overall, the company is coming back by applying strategies to reconnect with its customers and not going out of business in 2023.
How much has Bud Light lost since the Boycott?
The Bud Light controversy has cost the company $395 million in lost
What is the number one beer in the U.S.A?
Modelo Especial took over the top spot of Bud Light in the U.S. beer market in beer and has held onto the position ever since.
Will Bud Light survive?
An analyst with Gimme Credit, Dave Novosel, said that although Bud Light has lost market share, it can still survive the hit. He further added that the lesson is not to target the ultra-small segment with marketing that offends the huge loyal segments.