It's the backlash that just won't go away. The Bud Light controversy has dominated headlines since April when major beer brewer Anheuser Busch (BUDFF) -) launched a small-scale promotion with a popular TikTok influencer Dylan Mulvaney (who happens to be a transgender woman.)
Now, as Bud Light closes out its second month knocked from the top of the best-selling beer list, Florida Governor Ron DeSantis has pressed pause on his ongoing "anti-woke" battle against Disney (DIS) -) to come after the makers of Bud Light.
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In a recent Twitter post, DeSantis called for an investigation into Anheuser-Busch's choice to "put ideology ahead of returns". DeSantis indicates that he intends to file a lawsuit against the company, claiming that its board of directors neglected responsibilities to shareholders.
We’ve kneecapped ESG in Florida.
— Ron DeSantis (@GovRonDeSantis) July 21, 2023
So I’m calling for an investigation into AB InBev’s actions regarding their Bud Light marketing campaign and falling stock prices.
All options are on the table and woke corporations that put ideology ahead of returns should be on notice. pic.twitter.com/B3frLY4f30
The state of Florida's pension fund includes the Anheuser-Busch stock, giving DeSantis a foot in the door to battle what he writes are "radical social ideologies".
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“It appears to me that AB InBev may have breached legal duties owed to its shareholders and that a shareholder action may be both appropriate and necessary,” DeSantis continued in the letter. It's true -- since the controversy has taken hold, Anheuser-Busch stock has fallen from $66 a share to $58.
But as to the cause, it's difficult to determine whether it was the boycott of Bud Light that hurt stock prices, the company's lackluster public response to the controversy, or other various market factors.
While DeSantis has released his letter publicly, no suit has been officially filed at the time of this writing.
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