By Guy Hayward, Founder and Director of Local Heroes
Bud Light’s 2023 foray into purpose marketing was enough to put even Unilever off, with Hein Schumacher – former CEO of the multinational – announcing that politics would remain strictly separate from campaigns moving forward. The question is: was this timorous response – echoed by many other marketing departments around the world – really the right move for the brands represented?
When purpose marketing hit headlines – for all the wrong reasons
It all began with a single custom can of Bud Light, sent to support trans influencer, Dylan Mulvaney, as she celebrated “365 days of girlhood” on TikTok. What was intended to align the brand with inclusivity soon became a frontpage disaster, when certain individuals took it upon themselves to boycott the brand by sharing online footage of themselves destroying – and even shooting – cases of Bud. Dylan’s post had been lighthearted, yet the response was anything but.
The 25% sales nosedive experienced by the beermaker’s parent company, Anheuser-Busch, within just one month of the failed purpose marketing attempt proved cataclysmic, with the brand quickly losing its leading US spot to Mexican competitor, Modelo Especial.
But what went wrong?
Theoretically, embracing purpose should have paid off. McKinsey & Company found that when ESG claims were attached to products, sales of these items grew by 28% between 2017 and 2022, compared to just 20% for products without associated value statements. Fox + Hare furthermore reports that 71% of consumers see brand purpose as important, with 47% allowing it to actively influence their choices. Indeed, according to McKinsey, 70% of Gen-Zers now actively research a brand’s ethics prior to engagement. On paper, then, attaching claims of inclusivity to Bud Light via Dylan was a good move for the brand, particularly as she is young and boasts a strong following on Gen-Z’s platform of choice: TikTok. This could have helped Bud to resonate with an increasingly significant consumer segment, had it invested in deeper narrative and strategic consideration first.
Understanding the purpose platform
Although the specifics are not fully public – one thing we know about the TikTok algorithm is that it tends to show posts created by or closely related to people and brands already followed. Known as the ‘for-you page’, the personalised newsfeed it generates for users is generally based on historical interactions, with the topics shown determined by each person’s unique combination of interests, beliefs, and values. So, when Dylan’s collab was posted, it found its way into the hands of two potentially misaligned viewerships: the open-minded liberal, trans-supportive community – and an audience of wider beer drinkers spanning several demographics, many of whom were less understanding when encountering trans-related content on their phones, perhaps for the first time.
On paper, Bud Light had attempted something admirable: uniting two different worlds to boost awareness – not only for the brand beyond its typical audience but also for a marginalised social group, extending the possibility of support beyond its typical box.
The real reason for failure
Unfortunately, it takes much more than spontaneous gesture to burst the bubbles we all inadvertently live in. People’s views won’t transform overnight – and brands’ shouldn’t either. Otherwise, they can come across as inauthentic – the real reason Bud Light was unable to fill the 25% sales gap created when its sudden and unexpected message jarred with existing consumers, resulting in loss. Any new demographics targeted wouldn’t step up to counter the drop, as they couldn’t shake the feeling that Dylan was being used as a pawn for profit, remaining unmoved and unwilling to buy from the brand.
The need to be authentic
Caring was never Bud Light’s problem. Rather, its campaign failure can be largely attributed to the fact that purpose marketing needs to feel authentic to resonate and achieve its purpose. And authenticity was the one quality Bud’s gesture lacked. There’s a reason that firms like Patagonia have done so well from championing purpose. Far from profit driven, the outdoor clothing brand has demonstrated its commitment to its environmental cause through substantiated narrative and action, eventually creating a legal structure that allowed it to give 100% of its post-reinvestment profits to the planet. This resulted in record revenues in 2024 – because there was genuine alignment between brand identity and purpose. By comparison, Bud Light’s efforts came across as a hollow gesture.
Building up to purpose
Whilst it helps to establish a values-driven identity from the outset, this is not to say that brands like Bud are incapable of turning a new leaf. Had the beer company taken the time to gradually educate and finetune its consumer audience, rather than pulling purpose out of a hat, it could have ensured its new identity gelled. Take Nike, for example. The sports retailer had faced multiple criticisms for tone-deaf, exclusionary content in the past. Yet, by introducing equitable workforce targets and strong representation of female athletes over time, it was able to gradually align with a new audience in a way that feels authentic. This authenticity substantiated its own collaboration with Dylan, which happened at around the same time as the Bud Light scandal but proved far more successful – once again, proving politics isn’t the issue.
Don’t promise to change the world
Another mistake that Bud Light made was attempting to deliver social change much bigger than the brand’s own social scope. A beer company with no history of supporting equality was never going to convince the change-resistant consumers invested in its products to abandon their fears, judgement and misconceptions – at least not all in one post. Nor was it going to inspire immediate trust from a new demographic reluctant to trust in Bud’s unattested promise to change the reality of the world we live in. This was a promise the beer brand could never live up to, equating to mere social-value washing in viewers’ minds.
The importance of real narrative
Values-based narrative is key to building the kind of platform required to ensure purpose promises are better aligned. This is less about making grand gestures on the scale of Patagonia and more about ensuring value statements are proportionate to the brand. Take local startup, Vivimus Water, based in East Neuk of Fife, for example. This relatively small, sustainability and health-focussed company could have made a number of unrealistic climate pledges. But it decided to deliver purpose-driven value through things that made sense for Vivimus as a brand instead. Developed in response to the founder’s own health issues, the water claims to be unbeatably pure, containing far fewer microplastics than any other bottled water on the market. Distilled from the North-Sea using innovative, resource-friendly practices, it makes sense for the end product to be bottled only in glass, reflecting the company’s authentic respect for and relationship with its local environment. Consumers trust Vivimus, because it’s values make sense within the context, rather than feeling ‘tacked on’ like the values suddenly purported by Bud Light. The company’s mission is believable, achievable and sustainable, evidenced through real-world business decisions – such as rejecting major deals that require compromising to plastic – and embedded in the founder’s personal story for that much sought-after Gen-Z personal touch.
A new kind of purpose
What this tells us is that there’s a new kind of purpose on the market. One that’s sharper, more scrutinised – and increasingly difficult to fake.
Yes, 53% of buyers now expect brands to take a stand on at least one social issue, according to Edelman. And yes, Digital Silk reports that 45% of consumers would stop buying from a brand that doesn’t align with their values. But the way in which brands respond to this also matters – more than ever before. In an increasingly discerning world, purpose can no longer be performative, vague, or bolted on as an afterthought (much like Bud). Rather, it must be carefully woven into the fabric of the business itself – grounded in real decisions, real priorities, and a story that makes sense.
Agility as an advantage
For smaller, more agile brands, this presents a real opportunity. Unlike known giants with deeply entrenched hierarchies and potentially outdated reputations to trawl through, new players can build their identity around purpose from the ground up. The key is to be specific, honest, and proportionate. A business can’t pretend to be something it’s not; these days, there’s no hiding behind broad statements. A fizzy drink doesn’t need to save the planet and a snack brand doesn’t need to solve gender inequality, either.
Sometimes, it’s ok for brands to just be themselves. And if there is a connection to purpose in their true values and story – then great. Provided there is clarity of intention, consistency in action, and a believable reason to exist beyond pure profit to support it.
Real beats righteousness
Greenwashing – or indeed any kind of values-washing – will always backfire. Consumers would rather hear nothing at all than be sold a story that doesn’t hold up. That’s why its so important to stick to what’s real, telling brand story with integrity and infusing it across each touchpoint with the right marketing help.
Sharp practice
Ultimately, the real risk isn’t taking a stand. It’s doing nothing – or worse, doing the ‘right’ thing badly. Purpose is evolving and brands that succeed must build it strategically, embrace it authentically, and remain laser-focussed on the narrative they share.
