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Lorimer Wilson | Boycott Of Bud Light (BUD) Over: Conservative “Cannabis” Stock Index Continues To Advance | TalkMarkets

As mentioned in last week’s article (see here), Anheuser-Busch InBev (BUD) declined 18% in May as the result of a 26-year-old influencer’s post which included a tallboy can with her face on it supplied by BUD. This made some anti-transgender people very upset, with many calling for a boycott of the company’s Bud Light brand, the bestselling beer in the country (at the time). As a result, Anheuser-Busch InBev stock began to decline in April (-2.6%) and then went down another 18% during the month of May. 

We cited research on boycotts that shows such efforts tend to be short-lived and don’t have a long-term effect, and that has proven to be the case with BUD’s stock price, which has rebounded 9.0% so far in June. Be that as it may, though, the boycott has adversely affected Bud Light’s sales to the point that Modelo Especial, one of Constellation’s (STZ) beer brands, surpassed Bud Light (BUD) in May to become the top-selling beer in the U.S. [Note that all the stats reflect only off-premise sales, like the case you can put in your pickup truck, and not beverages sold in bars or restaurants.]

Even so, and given the generally dismal performance of pure-play marijuana investments, BUD still manages to lead the performances of the 6 constituents in the munKNEE Conservative “Cannabis” Stock Index, both last week and month-to-date (MTD). Shown here in descending order:

In summary, the munKNEE Conservative “Cannabis” Stocks Index was UP 1.6% last week and is now UP 3.2% MTD. In addition, the stocks in the Index now have an average dividend yield of 3%.

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