'Shark Tank' Star Vows To Teach Bud Light's Downfall In Business Schools: 'Very Damaging'

Kevin O'Leary thinks Bud Light's collapse will be a great topic for business schools moving forward.

Bud Light has been in the gutter ever since a March Madness promo from Dylan Mulvaney that was shared at the start of April.

The ad featured Mulvaney, a biological man, pretending to be too stupid to understand sports and March Madness while behaving in bizarre fashion. Mulvaney's entire shtick seems to be to mock women while behaving like a little girl.

The backlash was immediate. Sales have been slashed, Anheuser-Busch's stock price is down more than 14% as of Tuesday morning and there's no end in sight.

Kevin O'Leary breaks down Bud Light's collapse.

Now, the man famous for bringing his business acumen to TV on "Shark Tank" plans on teaching Bud Light's downfall to business students.

O'Leary said the following Monday on Fox News:

This is an extraordinary case, and one I'll be teaching in business schools across America this fall. In the history of beer, in the history from when it was marketed, because remember, you're dealing with a commodity. Beer is essentially the same. What differentiates it is brand. So you spend hundreds of millions of dollars a year building up a brand, and then you have to ask yourself on a campaign that really brings you into a discussion around gender identity, ‘is that the right thing for my beer brand?’ Well, apparently not, because if you spend $200 million a year, the biggest moves in the beer market were measured by 1 to 5% in a year. That's an extraordinary volatility. To lose 25% market share has never been achieved, and it's impossible to even dream it. So what have you learned? Social media – a widely held view amongst my CEOs is that if you get a bad social media story, it's going to go away in 24 to 48 hours. But that didn't happen here. We're still talking about this situation months later, and they continue to lose share. That, number one, is an issue. Number two, you've really got to understand who your constituency is. What they did there was very damaging.

Will the light beer brand ever recover?

While it's impossible to say for sure what might happen, it definitely seems like the current state of things is Bud Light's new reality.

There simply doesn't seem to be anything to suggest BL's incredible collapse is nearing a pivot of any kind. In fact, the exact opposite is true.

Will Bud Light ever recover? (Photo by Joe Raedle/Getty Images)

The latest sales data showed sales of the Anheuser-Busch light beer were down 27% for the week ending July 22, and the expectation is Modelo could permanently displace Bud Light as America's best-selling beer.

It's already been out-selling the once-popular beer brand for months. Now, it appears that might become permanent. The losing just doesn't stop for Bud Light, and that should make for some interesting business lessons from Kevin O'Leary.

Kevin O'Leary reacts to Bud Light's downfall. (Photo by G Fiume/Getty Images)

We'll see what grand plan Bud Light comes up with next. For now, the company remains in huge trouble.