Connect with us

Published

on

Many Anheuser-Busch distributors say they are resigned to their painful Bud Light losses — and that they have given up on luring back disaffected customers following the Dylan Mulvaney fiasco, The Post has learned.

After four months of hiring freezes and layoffs — with some beer truck drivers getting heckled and harassed even as Bud Light sales have dropped by more than 25% — Anheuser-Busch wholesalers have accepted that they have lost a chunk of their customers for good — and need to focus on a new crop of drinkers.

Consumers have made a choice,” said an executive at a Texas-based beer distributor who did not want to be identified. “They have left [Bud Light] and thats how its going to be. I dont envision a big percentage of them coming back.

Sales of other Anheuser-Busch beers including Budweiser, Michelob Ultra and Busch Light also have been in decline since Bud Lights marketing tie-up with transgender influencer Mulvaney.

Whats more, those lost customers have likely found that Bud Lights competitors, including Coors Light and Miller Lite, are a very similar product.

Winning the beer wars comes down to whoever is best at marketing, the executive said.

“There is an increasing feeling that this [Bud Light] decline rate could last for a while and the distributors are worried about losing those drinkers to other similar brands,” David Steinmann, executive editor of Beer Marketers Insights, told The Post.

A pair of social media posts by Mulvaney on April 1 — holding a 16-ounce can of Bud Light with her image on it and another of her sitting in a bubble bath surrounded by Bud Light cans — sparked a backlash that has lasted longer than most anticipated.

The strategy of targeting younger, newer consumers is the right one, Michael Stone, chairman of Beanstalk Group, a New York-based branding firm, told The Post. But Anheuser-Busch made a mistake executing on the strategy.

One silver lining for beleaguered Anheuser-Busch distributors is the rise of Modelo Especial — the No. 2 beer brand, which Anheuser-Busch owns outside of the US.

Rival Constellation Brands distributes Modelo in the US, where it has been outselling Bud Light on a weekly basis since May.

Whats helping distributors is having Modelo in their portfolio, the beer executive said. But if you dont have Constellation, you are in a pickle.

While Bud Light remains the No. 1 beer brand in the US, those days are likely numbered, with Modelo expected to overtake it by the end of August, experts say.

Even before the Mulvaney disaster, beer suppliers have been fighting a broader crisis.

Beer has long been the No. 1 alcoholic drink in the world and the beverage of choice for new drinkers, but just last year, spirits surpassed beer for the first time ever in the US. 

Hard liquor accounted for 42.1% market share in 2022 compared to beers 41.9% market share, according to the Distilled Spirits Council of the United States.

The increasing popularity of ready-to-drink cocktails is fueling the trend away from beer.

In response, breweries are partnering with spirits companies that are making canned cocktails.

Those include Cutwater Spirits, which Anheuser-Busch bought in 2019. The craft distillery is now part of Anheusers Beyond Beer.

Beer distributors and suppliers want to win over so-called “legal age drinkers,” before they acquire a taste for other alcoholic beverages.

There are so many different options for coming-of-age drinkers today, the beer executive said.

Continue Reading

Politics

The evolution of crypto payments and what lies ahead

Published

on

By

The evolution of crypto payments and what lies ahead

From Bitcoin to stablecoins, what’s next for digital currency? Stablecoins will continue to play a fundamental role in crypto payments, and their important role will only grow.

Continue Reading

Technology

Trump delays cancellation of de minimis trade exemption targeting China imports

Published

on

By

Trump delays cancellation of de minimis trade exemption targeting China imports

Employees package and sort express parcels at an e-commerce company on Nov. 1, 2024, around the Double 11 Shopping Festival in Lianyungang, Jiangsu Province of China.

Vcg | Visual China Group | Getty Images

President Donald Trump signed an executive order on Friday that puts a pause on his closing of the de minimis trade exemption, a provision commonly used by Chinese e-commerce companies Temu and Shein.

The order states that de minimis will be restored for small packages shipped from China, “but shall cease to be available for such articles upon notification by the Secretary of Commerce to the President that adequate systems are in place to fully and expediently process and collect tariff revenue” on those items.

Trump on Saturday suspended the exemption as part of new tariffs that include an additional 10% tax on Chinese goods. The nearly century-old exception, known as de minimis, has been used by many e-commerce companies to send goods worth less than $800 into the U.S. duty-free, creating a competitive advantage.

It was predicted that its removal could overwhelm U.S. Customs and Border Protection employees, as the mountain of low-value shipments already making their way into the U.S. would suddenly require formal processing.

De minimis has helped fuel an explosion in cheap goods being shipped from China into the U.S. CBP has said it processed more than 1.3 billion de minimis shipments in 2024. A 2023 report from the House Select Committee on the Chinese Communist Party found that Temu and Shein are “likely responsible” for more than 30% of de minimis shipments into the U.S., and “likely nearly half” of all de minimis shipments originate from China.

Critics of the de minimis provision say it’s provided an unfair advantage to Chinese e-commerce companies, and created an influx of packages that are “subject to minimal documentation and inspection,” raising concerns around counterfeit and unsafe goods.

The Biden administration proposed a new rule last September to curb the “overuse and abuse” of de minimis. The rule proposes to strengthen the CBP’s information collection requirements for de minimis shipments.

Continue Reading

Environment

Tesla increases Model X price, brings back incentive Elon Musk said was ‘not coming back’

Published

on

By

Tesla increases Model X price, brings back incentive Elon Musk said was 'not coming back'

Tesla has increased Model X prices and brought back an incentive that CEO Elon Musk said was unsustainable and “not coming back to any vehicles.”

Today, Tesla updated its Model X configurator in the US to raise the prices of the electric SUV by $5,000.

The new prices are $84,990 for the Long Range version and $99,990 for the Plaid version:

The price increase means the Model X ino longer qualifies for the $7,500 Federal EV tax credit as it now exceeds the $80,000 price cap for electric SUVs.

But with the price increase, Tesla is ramping up the incentives.

Tesla brings the price down by $1,000 with a referral code, it gives one option for free if you buy the Full Self-Driving package, and it is bringing pack “free Supercharing for life.”

The latter, Tesla stopped offering because CEO Elon Musk said it was unsustainable.

Back in 2020, the CEO said that it will “not come back to any [Tesla] vehicles”:

“Just us being fools, but free Supercharging forever is not coming back to any vehicles. It’s not a good incentive structure.”

However, it did bring it back last year as an “end-of-the-year incentive.”

But now, Tesla is bringing it back for Model S and Model X, and it applies to orders from the US, Canada, Puerto Rico, Europe and Middle East.

Tesla has made some changes to the program. Instead of being linked to the vehicle, meaning free Supercharging would remain if you sell it, it is now attached to your Tesla account.

The automaker also says that it doesn’t apply to vehicles used for commercial purposes:

“Customers who purchase or lease a new Model X are eligible for free Supercharging during your ownership of the vehicle. Offer is tied to your Tesla Account and cannot be transferred to another vehicle, person or order, even in the case of ownership transfer. Used vehicles, business orders and vehicles used for commercial purposes (like taxi, rideshare and delivery services) are excluded from this promotion.”

However, Tesla also said that the last time, but it is hard to enforce.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Trending