Heineken CEO says businesses need to ‘stand for your values’ in wake of rival Bud Light’s transgender row
AB InBev’s controversial ad spot with a trans influencer landed it in a cultural crossfire, ravaged its Bud Light business and frightened brands the world over. Perhaps none more so than other brewers.
One of those is Heineken, whose CEO Dolf van den Brink spoke about his company’s recent profits—and rival AB InBev’s expensive misstep—on Monday.
“Particularly in the Western world, we do see a lot of polarization in society. And that’s affecting all players, all actors in society, also businesses and also brands,” Heineken’s Dolf van den Brink told CNBC’s “Squawk Box Europe”.
“You have to be thoughtful, you have to be balanced. And at the same time, you need to stand for your values and your principles. And we try to do that to the best of our abilities,” he said.
But while the Heineken chief said that companies should be true to their “values” and “principles”, he did not say what he would have done in AB InBev’s situation—perhaps reflecting a fear of getting into the same unenviable situation AB InBev found itself in, where the beer giant was attacked by both left and right over the transgender ad campaign and over its reaction to the controversy.
Bud Light brouhaha
Bud Light, one of the biggest brands owned by AB InBev, went from being America’s most widely sold beer to one that’s struggling to stay afloat in just months following a backlash from conservatives.
The brand partnered with transgender influencer Dylan Mulvaney to promote its low-calorie beer in April. The seemingly harmless spot spurred a culture war (including video of Kid Rock shooting cases of Bud Light) and resulted in consumers from the conservative side boycotting the beer.
AB InBev also came under fire from the LGBTQ+ community for distancing itself from the campaign and failing to help Mulvaney in the wake of the hate she received for promoting their brand.
The Belgian beer-maker’s sales plunged in the first quarter of 2023, and Bud Light’s demand has remained flat.
The rude awakening from AB InBev’s experience served as a lesson for Heineken as it ramps up its marketing spending in the coming months. At the company’s earnings call Monday, van den Brink said that Heineken would keep investing in its marketing efforts, especially in Mexico, Brazil and the U.S.
The Dutch brewer cut its annual profit forecast on Monday, however, reporting lower-than-expected operating profit for the first half of 2023. It also saw a decline in beer sales for that period compared to the same time last year.
The reason? The beer giant hiked the price of its drinks to offset the costs it was incurring due to inflation and high energy prices, but consumers weren’t too happy with that. Many of them switched to cheaper brands instead.
“We always knew the first half of the year would all be about the inflationary pressures on our input costs, particularly in Europe which is an important region to us,” van den Brink told CNBC.
Heineken and AB InBev did not immediately return Fortune’s requests for comment.
