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Message
re: Louisiana bottle plant shutting down due to Bud Light boycott
Posted on 7/3/23 at 10:28 am to Froman
Posted on 7/3/23 at 10:28 am to Froman
quote:
it was Bud Light’s declining but still higher than almost every other beer’s sales that shut the plant down.
You don't understand how economies of scale works, do you?
Is bud light still one of the largest brands of beer in the world? Yes.
Has the boycott significantly decreased sales? Yes.
So if you are the largest brand, then you require more resources to put out that product. All companies operate on profit margins. The profit is your total revenue minus expenses. If you want to produce the most beer then you also pay the most for operating costs to make that beer. That includes warehouses, breweries, distribution, packaging, etc...
Ergo, if you lose $30 billion in market cap, then your sales are cratering, meaning all of that expense is not seeing a return. Thus, they are operating at a loss. And indirect operations, such as bottle manufacturing, also incur a loss.
Rather stupid move to ruin so many jobs/careers all because you decide to go woke and offend your clientele.
But you keep pretending all is well.
Posted on 7/3/23 at 10:51 am to BugAC
quote:
You don't understand how economies of scale works, do you?
Progressives think Economics is bullshite and oppressive.
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