Why Product Boycotts Work (Or Not)

As anyone in PR knows, we’re living in a boycott culture. Over Easter weekend Texas congressman Dan Crenshaw (no relation) hopped on the boycott du jour with a video pledging to “throw out every single Bud Light we’ve got.” The punch line comes when Rep. Crenshaw angrily opens his fridge to reveal — no Bud Light at all. “That was easy,” he quips, as he shuts the fridge door.

But the joke might be on Crenshaw. The fridge contains several cans of Karbach, a Houston-based craft brewer that has since 2016 been owned by — you guessed it — Anheuser Busch, Bud Light’s parent company. It’s a pretty common challenge of product boycotts and says something about how useful they are, or aren’t.

Another day, another boycott

For those wondering what the brew-haha is about, conservatives have taken aim at Bud Light (in some cases, literally) for its promotion featuring trans activist and actor Dylan Mulvaney. Twitter is overflowing with posts of angry boycotters pouring out, running over, and even shooting up Bud Light cans in protest. The latest stunt involving a steamroller running over what must be thousands of dollars’ worth of beer, is impressive (though possibly faked). But is the boycott affecting sales? Do product boycotts ever work, or are they performative?

Gauging a boycott’s success depends on its goals, naturally. In this case, anger seems channeled into hurting Bud Light sales and/or forcing it to end the Mulvaney partnership. So far, there’s some evidence that sales might have been affected. According to Beer Business Daily, “it appears likely Bud Light took a volume hit in some markets over the holiday weekend.” Yet BBD notes it has limited data from mostly rural Midwestern and Southern distributors. After days of silence, Bud Light released a statement defending the Mulvaney promotion, but it has been relatively quiet throughout the storm.

When product boycotts trigger “buycotts”

Product boycotts are usually more complicated than they seem. A case in point — Kellogg business school professor Anna Tuchman analyzed the outcome of the 2020 boycott of Goya Foods by Hispanic leaders. It all started when Goya’s CEO praised then-President Trump’s immigration policy. Yet calls for a boycott of Goya products quickly drew a backlash among Trump supporters. Tuchman studied supermarket data and found that the backlash actually raised sales, albeit temporarily. She theorized that, unlike the seven percent of U.S. households that were already regular Goya customers and could potentially boycott the brand, nearly anyone could decide to buy it in solidarity. Many did.

Goya’s more narrow customer base makes it different from a mainstream brand like Bud Light. But the same principle could well apply here. Even if the boycott keeps conservatives from buying it, the PR and social media coverage could invite a “buycott” of Bud Light from others, just as it did for Goya. Then there’s the problem Rep. Crenshaw ran into; Bud’s parent company Anheuser Busch owns more than 500 beer brands, including many that are popular in the U.S., from Stella Artois and Michelob to Corona and Blue Point. So, avoiding all A-B brands might take some homework by the boycotters.

Brand social status is a key factor

Another factor that affects a boycott’s power is a brand’s strength as a cultural signifier. This should be obvious, but it’s often overlooked. Someone’s choice of black beans isn’t a status symbol. It’s not something they brag about or see as part of their social identity. Yet lifestyle brands do act as badges of identity, so they’re more vulnerable to protests. A 2019 boycott of Equinox and sister brand Soul Cycle (over billionaire owner Stephen Ross’s Trump fundraiser) hurt class enrollment rather decisively for both brands. The reason? Both enjoy a carefully cultivated image of social responsibility and inclusion. They’re a signal of status for members, so during a celebrity-led boycott, no one wanted to rave about their Equinox Cardio Sculpt instructor on Instagram or post about the latest Soul Cycle swag. Lots skipped their workouts altogether.

I’m not sure where beer fits on the social status scale, but I’d say it’s a stronger signifier than beans, if maybe lower than luxury fitness. Perhaps more importantly for a 30-year-old product like Bud Light, it needs to expand its appeal to add new drinkers, like younger people and women. Its Director of Marketing, Alissa Heinerschied, put it bluntly in a March interview. “I had a really clear job to do when I took over Bud Light…this brand is in decline. It has been in decline for a very long time. And if we do not attract young drinkers to come and drink this brand, there will be no future for Bud Light,” she said.

Finally, the LBGTQ market is a huge and spendy one. Beer brands have shown their support in the form of splashy Pride sponsorships, targeted advertising, and influencer campaigns for years. Those steamrolling the brand will have a hard time choosing another beer that hasn’t supported the gay and trans communities.

If the Bud Light boycotters’ aim is to grow awareness of their position and build community among like-minded people, they have succeeded. The brand is being trashed in every corner of the web, and that’s not helpful to its marketing team. But if the goal is to put the brand out of business, or push it and other beer makers to pull LBGTQ support and sponsorships, it will most likely fall flat.

Goya And The Art Of The Brand Boycott

The consumer boycott is a time-honored tactic for those who seek to force political or social change. But do boycotts ever work?

Consider the recent backlash dished out to Goya Foods CEO Robert Unanue after Unanue participated in a White House roundtable on opportunities for Hispanic Americans. As he announced Goya’s involvement, Unanue praised president Trump’s leadership. He observed that the country is “truly blessed […] to have a leader like President Trump, who is a builder.” Unanue went on to compare the president to his immigrant grandfather who had founded the company he now runs.

The reaction to Unanue’s words among many Hispanics was predictable and swift. Boldfaced names from Alexandra Ocasio Cortez to Lin-Manual Miranda tweeted in support of a boycott. They used hashtags #goyaway and #boycottgoya, with accompanying media coverage.

The hits kept coming. The Hispanic Federation released a statement criticizing Unanue’s comments in light of the president’s track record and rhetoric about Hispanic immigrants. To many boycotters, the CEO’s words were simply at odds with the values and well being of its core customers.

When a boycott sparks a buycott

Yet, just as quickly, Goya’s proponents pushed back with a grassroots tactic of their own. Many tweeted urging a #buycott of its products, with one notable GoFundMe raising over $300,000 to buy Goya foods for donation to the needy. The president’s daughter famously got into the fray, and just like that, black beans become a political statement.

One irony of the situation was that Unanue was at the White House to announce Goya’s donation of a million cans of chickpeas and another million pounds of goods to food banks – a part of its admirable history of charitable contributions that was lost in the sauce of mutual recrimination.

Goya was clearly unprepared for the fuss, as its handling of a friendly phone interview with The Wall Street Journal showed.

Through all of this, I can sense the PR woman fret, and I hear a scolding administered to Mr. Unanue in the background. The communications team’s risk-aversion becomes even more evident after the interview is over, when Mr. Trump and his daughter Ivanka tweet photos of themselves posing with Goya products. I email Mr. Unanue on Thursday asking for comment on the endorsement, and he responds with an expression of gratitude to the first family.

An hour later I receive an email from a different PR woman: “We’d like to retract and edit that quote immediately. Please see below for the approved quote.” The approved quote makes no mention of Donald or Ivanka Trump. Two more hours go by and I get yet another email from PR, retracting the reworked quote altogether.

Never say those PR reps don’t earn their salaries.

Brand boycotts rarely succeed

So, who’s winning the PR war here? Between the pro-boycott noise and the #buycott clapback, the Goya situation may be a draw. The fact is that most boycotts fizzle. And experts say they don’t usually harm the bottom lines of the brands or companies targeted. Barely a quarter of them result in desired change.

Yet the goal of a boycott should be in the media coverage and brand reputation harm (or benefit) it generates. A study by Mary Hunter-Dowell and Brayden King shows that. A successful boycott isn’t about lost sales or financial pressure. It’s about negative media headlines that persist. “The no. 1 predictor of what makes a boycott effective is how much media attention it creates, not how many people sign onto a petition or how many consumers it mobilizes,” notes King.

A clash with brand values can stick

In my view, the bad PR is effective when it runs counter to a corporation’s character or values. After Stephen Ross, majority owner of Equinox and SoulCycle, hosted a Trump fundraiser last summer, both brands were targets of a celebrity-led boycott. A data analytics company that tracked SoulCycle signups concluded that its business slumped in the weeks following the controversy.

What made the difference? Brand image, for one. As “lifestyle” brands with large LGBT followings, Equinox and SoulCycle count on being status symbols — or at least they did in pre-COVID days. The brands also convey social responsibility commitment in their marketing, sponsoring progressive and LGBT events, so the fundraiser made them seem hypocritical at best.

By that logic, the Goya brand controversy will simmer on, because the food fight isn’t over. The Trump campaign has seized on the boycott as a proxy for the latest culture war, producing Spanish-language broadcast ads that highlight the “shameful smear campaign” against Goya in Florida.

It’s a canny move. If the president and his advocates can link the Goya controversy to cancel culture and intolerance among progressives, they can win. If, on the other hand, Goya’s critics align it with the administration’s anti-immigration policies and racist attitudes to paint the CEO as hypocritical or callous, they will have elevated the boycott above partisan politics.

As Americus Reed of University of Pennsylvania’s Wharton School writes, “If the boycott reflects a movement — rather than a moment — it can change the world around it.” Stay tuned.