An analysis conducted by Axios revealed that Anheuser-Busch, Kohl's, and Target collectively lost around $28.7 billion in market value following the controversy unleashed after their woke stances associated with the launches of LGBT children's clothing collections or advertising campaigns featuring transgender figures:
Reactions and counter-offensives against all things "woke" mean companies can find themselves in the crosshairs anytime, and they can't predict the fallout.
Anheuser-Busch / Bud Light
Anheuser-Busch, parent company of Bud Light, was the first to report a drop in sales after partnering with transgender TikToker Dylan Mulvaney. Following the controversy, the company's stock market cap decreased by more than $6 billion.
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Moreover, customer rejection ended in a boycott that not only caused multi-million dollar losses for the company, but also cost them the title of best-selling beer in the country last month. In May, Bud Light sales plummeted 29.5% compared to the same period in 2022, and its competitor, Modelo Especial, became the beer of choice for American consumers.
Modelo Especial is now the top-selling beer in America with an 8.4% share, up from 7.5% in January. Bud Light has moved down to 7.3% from 10.3% in January, relinquishing the top spot for the first time since 2001.https://t.co/TQFH9nySjZ pic.twitter.com/wFvj8ScbHN
— Charlie Bilello (@charliebilello) June 14, 2023
In a statement released on the company's official website, Anheuser-Busch CEO Brendan Whitworth justified his actions and did not apologize to consumers for the controversy.
Target
The Target controversy arose due to the launch of its LGBT baby and children's clothing collection. Criticism rained down on the company for, among other things, including women's swimsuits that have "extra crotch coverage" and help hide male private parts. "Target" trended on Twitter, and users began calling for a boycott.
Did you know @Target also sells “tuck-friendly” bathing suits for children in the Pride section? Well now you do.#BoycottTarget #GaysAgainstGroomers pic.twitter.com/ohK7X3D4N3
— Gays Against Groomers (@againstgrmrs) May 20, 2023
The retail chain lost more than $15 billion in market cap because of the controversy. Realizing the repercussions, the company stated that it had decided to remove the LGBT merchandise from its stores. However, the retailer's share price still fell more than 20%.
Before the messages in its LGBT collection went viral, Target was trading at $160.96 per share. After the scandal, share prices reached their lowest point: $126.48.
Kohl's
Following in the footsteps of Target, shortly thereafter, the department store Kohl's launched its LGBT baby and children's clothing collection. There was clothing available for babies with phrases such as "Happy Pride!" and "proud of my family."
Users began to show their displeasure with the collection, claiming that the messages on the clothes were "not appropriate for children."
The company's stock market value fell by more than 20%, reaching a low of $17.96 per share, due to customer disapproval and repeated calls to boycott the retailer.
