In a significant blow to the Ardagh Group, a global glass producer, the company has announced the impending closure of two of its bottling plants in North Carolina and Louisiana. The move will result in the layoff of approximately 645 employees, according to reports by WRAL. Although the company did not disclose the specific reason for the closures, an investigation by WRAL suggests that the decision stems from the plummeting sales of Bud Light, which has been embroiled in controversy following a promotion featuring transgender influencer Dylan Mulvaney.
Workers at both plants had reportedly noticed a decline in production since Mulvaney’s video announcing the collaboration with Bud Light gained widespread attention in April. The negative public response to the partnership, which celebrated Mulvaney’s “365 Days of Girlhood,” sparked nationwide boycotts. The repercussions of these boycotts have been felt by retailers, distributors, bars, and contracted companies, ultimately impacting the demand for Bud Light. As a result, the Louisiana and North Carolina bottling plants were forced to take some of their machines offline due to reduced demand, as stated by a machine repair mechanic interviewed by WRAL.
According to an internal memo obtained by WRAL, executives within the Ardagh Group attributed the decision to close the two plants to sluggish sales with Anheuser-InBev, the parent company of Bud Light. Longtime employees revealed that a significant portion of the plants’ business involved producing bottles for Budweiser and Bud Light. Notably, employees at the Wilson, North Carolina plant were informed by their manager that the closure was a direct consequence of the Bud Light boycott, as David Williams, a machine repair mechanic, told WRAL, “‘Because of Budweiser no longer selling the bottle, they no longer needed our product.”
Since the controversial promotion featuring Dylan Mulvaney, Bud Light has experienced a sharp decline in sales, leading to substantial financial losses and a drop in market value. Despite the brand’s efforts to alleviate the backlash, including heavy discounts and rebates that essentially make Bud Light free in some markets, the sales decline has persisted. Bud Light sales for the week ending June 3 were down 24.4% compared to the previous year, according to NielsenIQ data provided to FOX Business.
The repercussions of the boycott and declining sales have been deeply felt by Bud Light and its parent company, Anheuser-Busch. As a result, the Ardagh Group, contracted by Anheuser-Busch, has been forced to make the difficult decision to shutter two of its plants, leading to significant job losses. The closure serves as a stark reminder of the enduring consequences faced by companies involved in controversial partnerships, as well as the power of public sentiment in shaping consumer behavior and market dynamics.
