Woke = Broke?
Bud Light, produced by Anheuser-Busch, is the latest company caught in America's ongoing culture wars. Other brands, including Disney, the National Football League, Nike, Target, and Chick-fil-A, have faced similar controversies. Consumers' Research, a firm that has spearheaded campaigns against American Airlines and Levi's, highlighted a growing dissatisfaction among consumers with corporations imposing their values.
Boycotts in response to corporate stances are seen on both sides of the political spectrum. Under Armour and Goya faced backlash after their CEOs expressed support for former President Donald Trump. The effectiveness of these boycotts is a subject of debate. Bud Light has already experienced a significant decline in sales, losing its position as the top-selling beer in the US, with a nearly 25% drop in sales leading up to June 3. An analysis by JP Morgan projected a 26% decline in Anheuser-Busch's earnings for the year, with a full recovery not expected until the 2024 fiscal year. The term "woke," originally used to describe awareness of social injustice, has become a pejorative term among right-wing Republicans, encompassing various issues like climate change and support for minorities. Boycotts can have immediate financial impacts on companies, but the long-term damage to reputation and loss of loyal consumers can be even more detrimental. Surveys suggest that many Americans consider a brand's stance on issues when making purchasing decisions. Nike, for example, faced backlash and product destruction due to its support of Colin Kaepernick's racial justice protests, but ultimately sales increased, and the company's stock prices rose.
TikTok has filed a lawsuit challenging a new federal law that could force its Chinese parent company, ByteDance, to sell the app or face a ban in the U.S.