Heineken’s Chief Executive, Dolf van den Brink, reflects on the recent social media controversy surrounding a campaign for rival beer Bud Light, involving transgender social media influencer Dylan Mulvaney. While acknowledging the prevailing polarization in society, van den Brink affirms the importance of businesses staying true to their values. He believes thoughtful and balanced approaches are necessary while simultaneously standing firm on principles. Despite the challenges, Heineken’s brand teams have been navigating this new world admirably.
Bud Light, owned by Belgium’s Anheuser-Busch InBev, experienced a significant setback as it lost its position as the top-selling beer in the U.S. Following the product placement deal with Dylan Mulvaney, conservative boycotts led to a sharp 24.6% decline in Bud Light’s sales according to NielsenIQ data from consulting firm Bump Williams. The controversy even garnered political attention, with Florida Gov. Ron DeSantis calling for an investigation into potential breaches of duties to shareholders.
The wider debate surrounding corporations’ support for social or political causes has also impacted AB InBev. Critics accused the company of not standing behind Mulvaney during the backlash. Amidst these concerns, industry groups such as Outvertising have called on brands to continue supporting campaigns and partnerships that back the LGBTQ+ community.
Dolf van den Brink remains committed to the importance of advertising in the challenging market environment. Heineken has significantly increased its marketing spend by 200 million euros ($221 million) in the first half of the year. Despite this effort, Heineken reduced its 2023 profit growth forecast and reported a decline in beer sales and operating profit below the company’s consensus forecast.
As Heineken and AB InBev navigate the complexities of the market, it becomes clear that businesses’ dedication to their values and the causes they stand for can significantly impact their fortunes. The controversy surrounding Bud Light and Dylan Mulvaney serves as a reminder of the importance of thoughtful and principled approaches, even amidst societal polarization.