Anheuser-Busch CEO changes focus, compensates workers after transgender controversy.

Bud Light to Compensate Workers Amid Backlash Over Transgender Activist Partnership

The parent company of Bud Light has announced that it will compensate its workers after a backlash targeting the beer following its decision to partner with transgender activist Dylan Mulvaney. Michel Doukeris, the CEO of Anheuser-Busch InBev, told the Wall Street Journal that the situation impacts front-line workers more than anyone else. Bud Light’s delivery drivers, sales representatives, and distributors will receive a $500 bonus each, as they have been confronted by angry people on the street. Doukeris stated that these workers are the fabric of the business and are family and neighbours.

Continued Support for LGBT Organisations

Doukeris also stated that the company would continue to support LGBT organisations, despite the backlash against the brand. He added that the company has given donations to military veterans groups, LGBT groups, and organisations that support black and Hispanic communities. However, in an earnings call, Doukeris appeared to distance Bud Light from Mulvaney, a male who claims to be a woman, and stressed that it was just “one can” that was sent. He added that the company will triple its planned investment into Bud Light over the summer.

Swift Backlash

After Mulvaney posted a photo of a can bearing the influencer’s likeness to social media, the backlash was swift. A handful of conservative celebrities suggested that they would boycott the brand, causing sales of the light beer to drop sharply. Country singer John Rich, rap-rock star Kid Rock, Travis Tritt, and conservative influencers have suggested people boycott the brand amidst the controversy. In one instance, Kid Rock used cases of Bud Light for target practice in a now-viral video.

Marketing and Public Relations Experts Question Partnership

Marketing and public relations experts have publicly questioned why Anheuser-Busch partnered with Mulvaney and suggested Bud Light’s executives are out of touch with consumers who purchase the beer. David Johnson, CEO of Strategic Vision PR Group and expert in crisis communications, told Fox News last month that he would have told Bud Light to avoid “this situation” entirely. He added that the Mulvaney endorsement, partnership seems to go against the brand.

Attempts to Win Back Consumer Base

The controversy prompted Bud Light to place two executives, Alissa Heinerscheid, the vice president of marketing, and another executive, Daniel Blake, on leave last month. In the meantime, the company is attempting to win back its consumer base who may have been upset over the Mulvaney partnership. The firm over the weekend released a YouTube ad of younger beer drinkers at a country music festival. The video’s comments section was disabled.

Despite the backlash, Anheuser-Busch InBev reported higher than expected first-quarter earnings on Thursday as sharp price increases failed to put customers off. Doukeris also said it was too early to assess the full impact of the boycott, but added the drop-off of Bud Light sales in the first three weeks of April was equivalent to about 1 percent of global volumes for that period, according to Reuters.