American consumers showed dissatisfaction with "woke" corporations by impacting their profits, leading to significant financial losses for many brands in 2023.
In a recent episode of "The Bottom Line" on FOX Business, hosts Kelly O'Grady and Sean Duffy discussed instances of what they considered "cringiest" and most "embarrassing" corporate virtue signaling and the subsequent backlash from consumers. Anson Frericks, former president of Anheuser-Busch, proposed that consumers resist such corporate messaging because they are tired of significant companies dictating their thoughts and actions.
Transgender Activist Collaboration
Bud Light and Anheuser-Busch were backlashed after collaborating with transgender activist Dylan Mulvaney for a March Madness social media promotion. The beer brand marked Mulvaney's identification as a woman by sending customized Bud Light packs featuring Mulvaney's face for an entire year.
CEO Brendan Whitworth responded that the company had no intention of fueling a contentious debate on April 14. In May, Anheuser-Busch's sales dropped by nearly 30% compared to the previous year, and the company's market value dropped by $27 billion. The company announced plans to lay off hundreds of employees in July. Additionally, the company saw a 17.1% decline in North American sales volume and a 13.5% decline in U.S. revenue in the third quarter.
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Target's Pride Merchandise Used to "Tuck" Male Genitalia
Retail Giant Target encountered consumer backlash for showcasing products for transgender individuals in their annual Pride Month displays. This included female-style swimsuits designed to conceal male genitalia. In response to customer outrage, some Southern stores were directed to move Pride merchandise away from the front of their locations to prevent a situation similar to the one involving Bud Light, as reported by Fox News Digital.
Target's stock and sales suffered in the second quarter. CEO Brian Cornell acknowledged the impact of the fallout on sales during a call with reporters in August, as reported by FOX Business. Frericks commented that people now recognize the negative consequences for companies when they engage in social and political issues unrelated to their mission, leading to a decline in their stock prices. He emphasized that this is detrimental to the companies and individuals relying on them for financial stability in retirement.
Walt Disney's Disappointing Year-Ender
The Walt Disney Company ended 2023 with disappointments, including box office movie failures and public conflicts with Florida Governor Ron DeSantis regarding the state's Parental Rights bill.
Out of eight Disney's major movie releases this year, seven performed poorly with audiences, both in the U.S. and internationally. In an annual November SEC filing, the company acknowledged the misalignment with public and consumer tastes and preferences for entertainment, where Bob Iger also considers options to explore new strategic directions after returning as Disney CEO in November 2022.
Disney's stock declined more than 5% this year, in contrast to the S&P 500, which has risen over 13% during the same period. Over the past five years, Disney shares have fallen by over 29%, reaching near nine-year lows in October. Frericks anticipates a prolonged "road to recovery" for many of these companies, highlighting that it takes years to build brands but just one marketing campaign to damage them.
