As the repercussions from the Dylan Mulvaney partnership scandal continue to reverberate, a prominent multinational bank, HSBC, has reevaluated the stock status of Anheuser-Busch InBev, pushing it down to a 'hold' status.

The hold status suggests investors should maintain their current holdings of Anheuser-Busch InBev shares, with no recommendations to buy or sell. The downgrade came in the wake of an analysis conducted by Carlos Laboy, HSBC's managing director for the global beverage sector, who contended that AB InBev had mishandled its endeavors to transform its brand culture in the United States. The company has been suffering from a persistent slump in sales due to the ongoing controversy.

Laboy's assessment, as quoted in a note published in CNBC Wednesday and cited by the New York Post, delves into the effectiveness of AB InBev's leadership in navigating the brand culture transformation. "It's mixed," Laboy stated. He elaborated that while Brazilian beverage conglomerate Ambev seems to be getting it right, the U.S. division appears to be on the wrong track.

Laboy underscored the significance of the Bud Light crisis that erupted a month ago, its handling by the management, and the consequent loss of significant volume and brand relevance. "The situation raises many questions," Laboy noted, pondering why the U.S. leadership of the company underestimated the risk of a backlash, given other firms' recent experiences. Laboy also questioned the quality of the company's hiring practices, asking if Anheuser-Busch was bringing in the right people to grow the brands and assess risk.

Laboy continued to probe, highlighting that Budweiser and Bud Light represent iconic American ideas that have historically unified consumers. He asked why marketers failed to attract new consumers without driving away the core base of the company's largest brand.

The New York Post, citing data from NielsenIQ and Bump Williams Consulting, reported that the nationwide retail sales of Bud Light dipped by 23.4% year-over-year for the week of April 29. This downward trend represented a more substantial drop than the 21.4% decline recorded the previous week. It was also the fourth consecutive week where sales plummeted by double-digit percentages.

Furthermore, the blowback from the Mulvaney partnership controversy has extended to AB InBev's other American brands. Budweiser sales fell by 11.4% for the week ending April 29, Michelob Ultra (the third highest-selling brand behind Bud Light and Modelo Especial) decreased by 4.4%, Natural Light declined by 5.2%, and Busch Light was down by 1.8%.