Bud Light Continues to Plummet in Popularity
Bud Light’s popularity continues its downward spiral over a year after a significant boycott rocked the US beer industry. New sales figures reveal the extent of the backlash that started in April last year when the brand featured a transgender influencer in an advertisement.
Once the reigning champion of American beer sales, Bud Light has seen a dramatic decline. Last summer, it was dethroned by Modelo Especial and has now fallen to third place, trailing behind Michelob Ultra. If current trends continue, Coors Light could surpass Bud Light by the end of the year.
Even high-profile endorsements from figures like Donald Trump in February, and advertisements featuring NFL legend Peyton Manning and rapper Post Malone, have not halted the sales slump. Bud Light’s market share has dropped significantly, accounting for just 6.5% of beer sales in stores in dollar terms for the four weeks ending July 6. This marks a sharp decline from its more than 10% share before the boycott.
In comparison, Modelo captured 9.7% of sales, and Michelob Ultra claimed 7.3%, according to NielsenIQ data analyzed by the consulting firm Bump Williams. The period between Memorial Day and the July Fourth weekend is crucial for beer sales, underscoring the severity of Bud Light’s decline during this key sales window.
Modelo, a Mexican import sold by Constellation Brands, has not only outpaced Bud Light in dollar sales since last year but has also surpassed it in sales volume. The shift in rankings underscores the lasting impact of the boycott, which began after transgender influencer Dylan Mulvaney posted an Instagram video in April last year. The video featured a personalized Bud Light can with her image to celebrate her ‘day 365 of womanhood’ after her transition. This led to a significant backlash, resulting in a widespread boycott of Bud Light.
Bud Light’s leadership attempted to reverse the trend with a new ad campaign in February, featuring NFL legends Peyton Manning and Emmitt Smith alongside rapper Post Malone. However, these efforts have not succeeded in halting the decline, with market share continuing to fall.
Michelob Ultra, meanwhile, has benefited from increased marketing efforts targeting health-conscious consumers. Promoted as a low-carb beer, Michelob has seen a boost in sales and visibility, notably through sponsorships such as the Copa America.
The financial damage from the boycott was starkly highlighted in March when Budweiser’s parent company, AB InBev, reported a $1.4 billion drop in sales in America due to the boycott. The world’s largest brewer, which also produces Stella Artois and Corona, saw a 15.3% decrease in sales following Mulvaney’s post.
Despite the struggles faced by Bud Light, there was a glimmer of positive news for AB InBev in recent figures. Michelob Ultra, another brand under the AB InBev umbrella, has climbed to second place, offering some consolation to the company amid Bud Light’s ongoing troubles.
The decline of Bud Light from its position as America’s favorite beer underscores the impact of social and cultural issues on consumer preferences and brand loyalty. As the beer industry navigates these changes, brands like Modelo and Michelob Ultra are capitalizing on the shifts, further reshaping the market landscape.
