Billionaire businessman Mark Cuban, the owner of the Dallas Mavericks, has claimed that it is “good for business” for companies like Anheuser-Busch and Target to go “woke.”
In an interview with the Pittsburgh Post-Gazette on June 11, the “Shark Tank” judge said that the majority of consumers want to do business with companies that “care about their customers” and that, ultimately, CEOs know it’s beneficial to cater to customers and their various needs.
“There is a reason almost all the top 10 market cap companies in the United States can be considered ‘woke.’ It’s good business,” he said. “Most CEOs have enough experience to know to just wait out the news cycle until they go to the next one,” he added.
Cuban’s comments come as Target has reportedly lost around $15 billion in market value since mid-May amid the backlash over its controversial LGBT-themed children’s products, including items such as onesies with pro-LGBT slogans made for newborn infants.
The retailer also sold various items for adults including a “tuck-friendly” swimsuit and bags and sweatshirts emblazoned with the words “We Belong Everywhere,” “Too Queer for Here,” and “Cure Transphobia,” which were widely shared on social media.
Target has since pulled some of its controversial LGBT-themed children’s items from store shelves across the United States, citing concerns over its employees’ safety.
Target, Bud Light Market Losses
As of the time of publication, Target shares were trading at $126.48 after previously being valued at $160.96 on May 17.Target’s loss in market value comes after the maker of Bud Light and Budweiser, Anheuser-Busch, reportedly lost nearly $25 billion in market value in the wake of its decision to partner with transgender activist Dylan Mulvaney for a campaign.
According to NielsenIQ data cited by Bank of America, approximately 6.7 million fewer cases of Bud Light were sold this April and May compared to last year, as customers ditched the alcoholic beverage and multiple high-profile figures, including Florida governor Ron DeSantis, Arizona Republican gubernatorial candidate Kari Lake, and others, supported calls for a nationwide boycott of Bud Light.
Anheuser-Busch CEO Brendan Whitworth later said the company “never intended to be part of a discussion that divides people,” although the company has stopped short of issuing an apology.
Despite those astronomical losses, Cuban said a dip in market cap is “meaningless.”
“You have to realize that there aren’t many individual owners of stocks — almost all ownership is via funds, and most trading is quantitative. So, it’s not like the drop is because tens of thousands of individual holders sold their stocks,” he told the Pittsburgh Post-Gazette.
Market Will ‘Really Punish You’
Cuban’s comments differ from those made by fellow “Shark Tank” judge and businessman Kevin O’Leary, who told Fox News in an interview earlier this month that Target’s recent multibillion-dollar stock decline shows that when companies “start to get too distant or too far away from the primary mandate,” the market will “really, really punish you.”“On one hand, companies want to show their support of diversity in all the mandates that society is discussing openly,” O’Leary said. “On the other hand, the job of a business, particularly from the perspective of an investor, and those that are retired, for example, that own [index fund shares of] the S&P 500 or own Target stock, are concerned that maybe they’re losing their way in terms of what the prime objective is: your customers, your employees, and your shareholders.”
Other experts have warned that Anheuser-Busch’s reputation will also suffer in the long term following its controversial involvement with Mulvaney, particularly among its former loyal consumers.
According to consumer behavior data analytics firm Circana, Bud Light competitor Modelo Especial ranked number one in May, with $333 million in sales, marking a 15 percent increase from 2022 compared to Bud Light’s $297 million.
Dave Williams, vice president of analytics and insights at Bump Williams Consulting, told CBS MoneyWatch that the summer months are set to be crucial for Anheuser-Busch.
“Companies invest a lot into being front and center and top of mind during this season as there is only so much floor space to allocate, consumer money to spend and beer occasions to fulfill,” Williams said. “And if a brand misses those opportunities, then that is almost impossible to fully recover that lost potential over the balance of the calendar year.”
