CV NEWS FEED // Bud Light is no longer the king of beers. Modelo dethroned Bud Light as the top-selling beer brand after a month of backlash against Bud Light for partnering with a “trans” social media star.
Many Americans stopped purchasing Bud Light after “transgender” TikTok influencer Dylan Mulvaney endorsed the brand in March. Mulvaney is a man who claims to be a “girl” and often dresses as a schoolgirl.
This is the first time in two decades that Bud Light has not been the top-performing beer in America.
Modelo Especial climbed to the top in the four-week span that ended June 3. In the U.S. beer market, Modelo now accounts for 8.4% of total retail sales. In comparison, according to Nielsen and Bump Williams Consulting, Bud Light now makes up 7.3% of the market. Bud Light had a 10.3% share at the start of the year, significantly higher than Modelo’s 7.5%.
Other Bud Light rivals saw small increases in their market shares as well. While Miller Lite maintained its 5.3% share recorded in May, Coors Light increased its share to 6.2% of total sales, up from 6.1% in May.
The Bud Light boycott is now in its third month. It began when Mulvaney endorsed the drink on Instagram during the March Madness basketball tournament. His message spawned a video by musician Kid Rock on April 3 about boycotting the drink, which sparked a larger boycott among some U.S. customers.
During an earnings conference with investors, Anheuser-Busch InBev CEO Michel Dimitrios Doukeris downplayed the controversy but announced the company had dropped Mulvaney as a brand influencer. Offended by the dismissal, pro-LGBTQ groups such as 2Bears Tavern Uptown in Chicago joined in the boycott.
“Anheuser-Busch’s decision to drop its support for Mulvaney in response to ignorant and hateful objections by some of its customers shows how little Anheuser-Busch cares about the LGBTQIA+ community,” the bar venue stated on Instagram.
Competing beer companies are reaping the rewards of Bud Light’s marketing catastrophe. But their leaders are not celebrating yet, as Bud Light remains the year-to-date leader.
While Modelo has surpassed Bud Light in recent weeks, the brand still has “a ways to go” before claiming the top rank for the entire year, according to Bumps Williams Consulting.
Bud Light had 9.0% of total retail sales in the U.S. market as of June 3 (the first 22 weeks of 2023), followed by Modelo at 8.0%, Coors Light at 5.6%, and Miller Lite at 4.9%.
Bud Light still has about a $200-million-sales advantage over Modelo, though Modelo’s sales seem to be increasing each week throughout this summer, according to Bump Williams Consulting. Modelo Especial experienced a 12.2% gain in sales compared to the week ending June 3 last year, while Bud Light saw a 24.4% reduction in sales.
Anheuser-Busch InBev shares, which hold Bud Light, are down 5.4% year-to-date, while Constellation Brands shares are up 6.8%.
