American consumers voted with their wallets against “woke” corporations in 2023, with many brands losing large chunks of money for their shareholders.
On Tuesday’s installment of “The Bottom Line,” Fox Business’ Kelly O’Grady and Sean Duffy took a look back at some of the “cringiest” and most “embarrassing” examples of “corporate virtue signaling” — and the subsequent consumer backlash.
Former Anheuser-Busch president Anson Frericks suggested that many consumers are pushing back because they are fed up with major corporations telling them how to think and what to do.
Bud Light and its parent company, Anheuser-Busch, came under fire shortly after it partnered with transgender activist Dylan Mulvaney for a March Madness social media promotion earlier this year.
The beer brand celebrated the influencer identifying as a woman for a full year by sending personalized packs of Bud Light decorated with Mulvaney’s face.
As sales began to plummet, Brendan Whitworth, the CEO of Anheuser-Busch, addressed the controversy on April 14, claiming the company “never intended to be part of a discussion that divides people.”
By May, Anheuser-Busch had dropped $27 billion in market value and sales were down nearly 30% compared to the previous year.
In July, the company announced it was laying off hundreds of workers. In its third quarter, the company suffered a 13.5% decline in US revenue and a 17.1% decline in North American sales volume.
Retail giant Target faced similar backlash from consumers after the company featured products for transgender individuals as part of its yearly Pride Month displays.
The merchandise included female-style swimsuits that can be used to “tuck” male genitalia.
The corporation forced some Southern stores to move Pride merchandise away from the front of their locations after customer “outrage” to avoid a “Bud Light situation,” Fox News Digital first reported.
Target’s stock took a hit and its sales experienced a downturn in its second quarter. CEO Brian Cornell acknowledged the impact the fallout had on sales in a call with reporters in August, Fox Business reported.
“Finally, people are seeing that when companies get involved in these social and political issues that have nothing to do with their mission and their stock price plummets — that’s bad for these companies, that’s bad for people relying on them just to make them money so they can retire with dignity,” Frericks said.
The Walt Disney Company finished out 2023 with a string of disappointments that included box office flops and high-profile feuds with Florida Gov. Ron DeSantis over the state’s parental rights bill.
Out of eight major theatrical releases by Disney this year, seven of them significantly underperformed with audiences, not just in the US but overseas as well.
In a November SEC annual report filing, the company even admitted that it faces risks “relating to misalignment with public and consumer tastes and preferences for entertainment.”
Bob Iger, who in November 2022 returned to the Disney CEO role that he previously held until early 2020, said he is considering options that could take the company in new strategic directions.
Disney’s stock price is down over 5% year to date compared to the benchmark S&P 500, which is up more than 13% in that same period. Meanwhile, Disney shares have dropped over 29% in the past five years and have traded near nine-year lows in October.
Frericks predicted that the “road to recovery” for a lot of these companies would be long, noting that it takes many years for corporations to build their brands, but just one marketing campaign to tear them down.
Fox News’ Kristine Parks contributed to this report.
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