Bud Light, the once top-selling beer in America, has fallen to the third position in sales following a controversial marketing partnership and consumer backlash. According to data from NielsenIQ and Beer Marketer Insights, Modelo Especial and Michelob Ultra have surpassed Bud Light in sales during the crucial Memorial Day to Fourth of July holiday period.
The decline for Bud Light began in April 2023 when it entered into a marketing partnership with transgender influencer Dylan Mulvaney. The partnership sparked intense backlash from customers, leading to a boycott of the brand. The controversy caused lasting damage to Bud Light's sales and reputation.
Michelob Ultra, also owned by Anheuser-Busch InBev, has seen a rise in sales due to its focus on health and wellness. The beer has attracted health-conscious drinkers seeking a flavorful and low-carb beer. Industry observers predicted this would happen.
Modelo Especial, made by rival Constellation Brands, remains the top-selling beer at retailers in the US after surpassing Bud Light last year. The brand's success can be attributed to its strong marketing efforts and consumer appeal.
Bud Light has attempted to rehabilitate its image by pivoting marketing efforts to win back conservatives. It became the official beer of UFC and sponsored music festivals with country stars, maintaining a large advertising presence in the upcoming NFL season.
Anheuser-Busch InBev's stock price has risen by 6.47% in the past year, below the S&P 500 index rise of nearly 22%. The decline in Bud Light sales may impact the company's overall financial performance.