JPMorgan predicts trouble for Anheuser-Busch due to ongoing Bud Light backlash.

JPMorgan Predicts Devastating Future for Anheuser-Busch as Bud Light Sales Plummet

Analysts at JPMorgan had some bad news for Anheuser-Busch’s management and stockholders, according to a report from MarketWatch Tuesday.

The news is not good for Anheuser-Busch as sales of their flagship beer, Bud Light, continue to plummet. JPMorgan predicts that earnings before interest and tax will drop by over a quarter this year, in line with NielsenIQ data which shows a 23.6% decrease in sales of Bud Light in early May. The analysts also believe that there is a subset of American consumers who will not drink Bud Light for the foreseeable future.

However, there is some hope for Anheuser-Busch InBev stock, which may be bargain-priced right now due to the assumption of an even larger drop in EBIT.

Bud Light Offers Rebate to Boost Sales

In an effort to entice drinkers back to the brand, Bud Light has offered a big rebate on a case of beer, essentially making the beer free to many customers. The offer is so shocking that in some cases, it not only makes the beer free, but it also offers cash back from the purchase. The rebate is available for Budweiser, Budweiser Select, and several other Anheuser-Busch InBev beers in most states.

For instance, in many Target stores right now, a 15-pack case of Bud Light is only going for $12.99. Meanwhile, at rival Walmart, a 24-pack is going for $18.98.

Bud Light is practically paying people to buy its beer as it tries to get past its recent fiasco with Dylan Mulvaney.

Boycotts Continue to Affect Bud Light Sales

From its first ill-fated partnership with Mulvaney at the beginning of March to the latest week of disastrous beer sales numbers, Bud Light has been struggling to get out from under this growing boycott. As more people find a sudden distaste for Bud Light, sales have been collapsing. The plunging sales have also affected some of Anheuser-Busch InBev’s other brands, too.

The crashing sales have gotten so bad that some local distributors launched their own ad campaigns to plead with customers to resume buying the beer. At this point, nearly everyone is mad at Bud Light. Conservatives are mad that the beer is promulgating the radical gay and transgender agendas, and leftists are mad that Bud Light wasn’t vocal enough in supporting them in the face of the Mulvaney outrage.

So far, Bud Light has not found a suitable path forward as the boycott continues to send the brand into a tailspin, and not only in sales and revenue numbers.

The above prices are also those on the retailers’ websites, so in-store prices may even be lower as individual stores desperately try to unload their inventory. Regardless of the particulars, this Bud Light rebate offer shows that the beer maker is desperate to get Bud Light into people’s refrigerators ahead of the Memorial Day weekend, both in hopes of enticing drinkers back to the brand and also so as to not take back millions of cans of expired beer that never sold.

The future looks bleak for Anheuser-Busch as Bud Light sales continue to plummet, but the company is not giving up without a fight.

The post JPMorgan Has Devastating Prediction for Anheuser-Busch as Bud Light Backlash Rages On appeared first on The Western Journal.