Bud Light has another non-beer problem brewing on its hands
The beer brand could face another headwind, and this time it's at its breweries.
Thousands of union workers at Anheuser-Busch breweries, which craft Bud Light and other popular beer brands, across the U.S. have reached their breaking point and are threatening to strike as their current union contract is set to expire next month.
Roughly 5,000 workers represented by Teamsters at 12 Anheuser-Busch breweries across the nation have voted by 99% to authorize a strike if Anheuser-Busch fails to agree on a “stronger new contract” to replace the one that expires on Feb. 29, according to a new press release.
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The workers are pushing for the new contract to include improved wages, job security, and better health care and retirement benefits.
“Our members’ labor, talent, and sacrifice are what put Anheuser-Busch products on the shelf, and we are committed to getting a contract that rewards and recognizes their hard work,” said Teamsters General President Sean M. O’Brien in the press release. “If Anheuser-Busch’s executives can’t get their act together to negotiate an agreement that respects workers, we will see them out on the streets.”
The union also notes that Anheuser-Busch has put off negotiations on “important job security issues” since mid-November last year, despite multiple requests by the union to jumpstart talks. Currently, there are no dates set for negotiations, but a strike could spell more trouble for Bud Light which is struggling to get back on its feet at the heels of a rough 2023.
Last year, Bud Light faced a boycott from consumers after the beer brand featured Dylan Mulvaney, a transgender social media influencer, in one of its social media campaigns promoting a $15,000 giveaway. Shutterstock
The boycott caused Bud Light to lose its spot as the top-selling beer brand in the United States. Also, Anheuser-Busch’s U.S. earnings plummeted by more than 10% during the second quarter last year, costing the company $395 million in earnings compared to the same quarter in 2022.
It was also reported last year that Bud Light was being sold for less than water, and some production plants that craft the beer have been shut down amid a decline in sales.
It seems that the boycott is still impacting Anheuser-Busch’s income as it reported a third-quarter 2023 year-over-year revenue declined of 13.5%. It also said that sales to retailers decreased by 16.6% with the volume decline of Bud Light being the main reason.
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