Reputation is hard won and easily lost.
"It takes 20 years to build a reputation and five minutes to ruin it.”
Warren Buffet’s famous quote is a stark reminder of how damaging crisis media management incidents can be.
But can reputations be rebuilt? And how quickly?
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Our crisis communication blogs typically look at the initial impacts of particular crises, how they are handled and what others can learn from them.
So, shall we look at one we have previously covered and see how the company is getting on now?
One of the crisis incidents we explored last year surrounded Bud Light. And its reputation hangover is yet to go away, shining a light on how long it can take to recover.
You may recall the brand found itself at the centre of a storm after working with transgender influencer Dylan Mulvaney on social media posts.
The backlash included a boycott, one musician banning the beer from his tour and another posting a video of himself firing a machine gun at packs of the beer.
And it quickly lost its place as America’s top-selling beer to Mexico’s Modelo Especial.
While some of the reaction feels extreme and unrelatable – particularly the machine gun part - the impact of the crisis is still being felt 12 months later.
Bud Light sales remain flat.
AB InBev, the company which owns Budweiser and Bud Light – and accounts for one in four of every beers sold worldwide - said that while overall global sales topped $14.5 billion from January to March this year, sales in the US fell by 9.1 per cent.
And sales to retailers were down 13.7 per cent, "primarily due to volume decline of Bud Light," according to the company.
The company’s overall revenue increased by 2.6 per cent, partly because of increased sales of higher-priced products.
But you can see the Bud Light brand is still bruised.
What is interesting about this from a comms perspective is that these types of social media boycotts don’t tend to have long-term consequences.
Many brands have seen their names circulate on social media with #boycott.
But after the initial impact, the boycott quickly loses its fizz and rarely holds. They have a history of ineffectiveness.
One of the reasons the Bud Light boycott has endured is because there are plenty of alternatives. It is easier for consumers to stick to boycotts if they can find similar products for a similar price. It is much harder if the boycott involves an element of self-sacrifice.
The US is awash with light beers available at similar prices that more or less taste the same. US consumers are also increasingly turning to spirits and hard seltzers.
Another reason for the long-term impact is the crisis was poorly handled.
As we stress during our crisis communication training courses, effective comms won’t solve the crisis, but it can reduce the reputational and financial hit.
The company initially stayed largely quiet, perhaps hoping the initial outrage would fizzle out. But that is a high-risk crisis response in today’s fast-paced digital world, and it allowed the storm to gain momentum
When it did speak in more detail, it released a wordy and vague statement that upset more people.
CEO Brendan Whitworth said: “We never intended to be part of a discussion that divides people. We are in the business of bringing people together over a beer.”
And he added: “I care deeply about this country, this company, our brands and our partners. I spend much of my time travelling across America, listening to and learning from our customers, distributors.”
— Anheuser-Busch (@AnheuserBusch) April 14, 2023
Those leading the boycott calls felt the statement was a non-apology. And those who had welcomed the beer taking a stance and promoting inclusivity believed it was now backtracking.
There was a feeling it had been paying lip service to trans rights in the hope of adding some fizz to beer sales rather than raising awareness of something it believes in and is committed to – not a good look.
Additionally, Mulvaney accused Bud Light of failing to support her amid the transphobic backlash she faced.
A poor response like this can escalate the crisis and make the recovery longer.
The ongoing Bud Light story is a reminder that every crisis is different.
Sometimes, things can initially feel a lot worse than they are, and the media cycle – and social media anger – quickly moves to something else if they are handled well, limiting the reputation hit.
But on other occasions, the impact can last longer than seemingly more significant crises.
It can be hard to predict which way a crisis will go.
Who would have thought that 12 months on Bud Light would still feel the impact of a crisis caused by a sponsored Instagram post and a commemorative beer?
The latest figures suggest more work needs to be done for Bud Light to rebuild trust and a positive perception with consumers before the froth can return to its sales.
The best way to avoid such a long road to redemption?
Have a tested crisis plan in place before the crisis strikes, respond quickly, communicate with compassion, clarity and consistency and let people know you are doing the right things to make it better.
Media First are media and communications training specialists with more than 35 years of experience.
We have a team of trainers, each with decades of experience working as journalists, presenters, communications coaches and media trainers.
Click here to find out more about our crisis communication training courses.
