Brewer Anheuser-Busch InBev (NYSE:BUD) has penned a new partnership with the Ultimate Fighting Championship (UFC) as it looks to rebuild its Bud Light beer brand.
Bud Light, which has faced a slump in sales on the back of a right-wing boycott in the US since spring, will become the official beer of the sport from January once again.
Anheuser-Busch’s Bud Light had been marketed at UFC events between 2008 and 2017, when it was replaced by Constellation Brands (NYSE:STZ)-brewed Modelo.
The new partnership will see Bud Light hold the spot over a six-year period and is worth “well into the nine figures”, according to a source cited by CNBC.
Modelo had replaced Bud Light as America’s bestselling beer earlier this yea, following the boycott, which was sparked by a marketing partnership between Anheuser-Busch and transgender influencer Dylan Mulvaney.
The deal therefore comes as Anheuser-Busch reels from a 10.5% decline in US revenue and a 30% fall in operating profit over the second quarter.
“Anheuser-Busch and Bud Light have always been on the cutting edge of iconic sporting moments that fans remember forever,” the brewery’s chief executive, Brendan Whitworth, said in a statement.
“Reuniting with UFC is a continuation of this industry-leading legacy.”