Bud Light Loses Top Spot in Beer Sales to Michelob Ultra and Modelo Especial Amid Controversy and Consumer Preferences

St. Louis, Missouri, Missouri, USA United States of America
Anheuser-Busch InBev owns both Michelob Ultra and Bud Light
Bud Light falls to third in beer sales in America
Controversy over Dylan Mulvaney marketing partnership led to consumer backlash and boycott of Bud Light
Michelob Ultra and Modelo Especial surpass Bud Light in sales during Memorial Day to Fourth of July holiday period
Modelo Especial, made by Constellation Brands, remains top-selling beer in the US
Bud Light Loses Top Spot in Beer Sales to Michelob Ultra and Modelo Especial Amid Controversy and Consumer Preferences

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.



Confidence

76%

Doubts
  • Are there any other factors contributing to Bud Light's decline in sales besides the Dylan Mulvaney controversy?
  • Can Anheuser-Busch InBev bounce back from this financial hit?
  • How long will it take for Bud Light to recover from this setback?

Sources

77%

  • Unique Points
    • 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%
    • Bud Light entered into a marketing and sponsorship agreement with Ultimate Fighting Championship
  • Accuracy
    • Bud Light is now the No. 3 beer brand in the US
    • Michelob Ultra surpassed Bud Light to become the second-best selling beer at retailers during Memorial Day and July 4 holidays.
    • Modelo Especial became the No. 1 selling beer at US grocery and convenience stores in May 2023.
    • Bud Light represented 6.5% of beer dollar sales in US stores compared to 9.7% for Modelo Especial.
  • Deception (30%)
    The article contains selective reporting as it only mentions the decline in Bud Light sales following the Dylan Mulvaney partnership without mentioning any potential positive factors or improvements for other beer brands. The author also uses emotional manipulation by implying that Bud Light's fall from grace is a 'stunning fall from grace' and that their decision to hire Mulvaney was a mistake. Additionally, there is sensationalism in the title and body of the article.
    • But sales of the brand have continued to lag
    • Bud Light, once the nation’s most popular beer, is now the No. 3 brand in the country
    • The posts sparked a social media backlash among conservatives who launched a nationwide boycott of the brand
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (95%)
    The author, Ariel Zilber, demonstrates a clear bias against Bud Light due to their partnership with Dylan Mulvaney and the resulting backlash. The author repeatedly mentions the boycott and its impact on Bud Light's sales without providing any counter-argument or acknowledgement of potential mitigating factors. This one-sided reporting is an example of bias.
    • Bud Light, once the nation’s most popular beer, is now the No. 3 brand in the country – a stunning fall from grace for the Anheuser-Busch InBev-owned lager following the boycott over its Dylan Mulvaney ad partnership.
      • But sales of the brand have continued to lag, particularly as younger consumers increasingly move away from consumption of alcohol in favor of legalized marijuana and non-alcoholic beverages.
        • Mulvaney posted videos and images on her social media pages showing her brandishing a special, custom-made can of Bud Light with her image and likeness painted on the container. The posts sparked a social media backlash among conservatives who launched a nationwide boycott of the brand, which resulted in sales of Bud Light tanking.
        • Site Conflicts Of Interest (100%)
          None Found At Time Of Publication
        • Author Conflicts Of Interest (100%)
          None Found At Time Of Publication

        96%

        • Unique Points
          • Bud Light pivoted marketing efforts to win back conservatives by becoming the official beer of UFC and sponsoring music festivals with country stars, maintaining a large advertising presence in upcoming NFL season.
        • Accuracy
          • Bud Light, formerly the top-selling beer in the US, has fallen into third place.
          • Michelob Ultra surpassed Bud Light to become the second-best selling beer at retailers during Memorial Day and July 4 holidays.
          • Modelo Especial remains the top-selling beer at retailers in the US.
        • Deception (100%)
          None Found At Time Of Publication
        • Fallacies (100%)
          None Found At Time Of Publication
        • Bias (100%)
          None Found At Time Of Publication
        • Site Conflicts Of Interest (100%)
          None Found At Time Of Publication
        • Author Conflicts Of Interest (100%)
          None Found At Time Of Publication

        96%

        • Unique Points
          • Bud Light represented 6.5% of beer dollar sales in US stores compared to 9.7% for Modelo Especial and 7.3% for Michelob Ultra.
          • Modelo’s rise was accelerated by a conservative backlash against a promotional campaign with transgender influencer Dylan Mulvaney.
          • Anheuser-Busch issued a statement that Bud Light will always be a mainstay of their portfolio.
        • Accuracy
          • Modelo Especial became the No. 1 selling beer at US grocery and convenience stores in May 2023.
          • Michelob Ultra overtook Bud Light in the No. 2 spot in sales at US grocery and convenience stores.
        • Deception (100%)
          None Found At Time Of Publication
        • Fallacies (90%)
          The article reports on sales data and the author does not make any fallacious statements. However, there are some instances of inflammatory rhetoric used in the article that detract from a perfect score. The term 'woke' is used to describe companies that support LGBTQ rights, which can be seen as derogatory and divisive.
          • ][former president Donald Trump] urged his supporters to give Bud Light a 'second chance' because Anheuser-Busch is not 'a Woke company.'[[//]
        • Bias (100%)
          None Found At Time Of Publication
        • Site Conflicts Of Interest (100%)
          None Found At Time Of Publication
        • Author Conflicts Of Interest (0%)
          None Found At Time Of Publication

        96%

        • Unique Points
          • Bud Light entered into a marketing and sponsorship agreement with Ultimate Fighting Championship (not mentioned in other articles)
        • Accuracy
          • Bud Light is now the No. 3 beer brand in the US
          • Michelob Ultra surpassed Bud Light to become the second-best selling beer at retailers during Memorial Day and July 4 holidays.
          • Modelo Especial remains the top-selling beer at retailers in the US.
          • Bud Light represented 6.5% of beer dollar sales at retail stores compared to 7.3% for Michelob Ultra for the past four weeks ending on July 6.
        • Deception (100%)
          None Found At Time Of Publication
        • Fallacies (100%)
          None Found At Time Of Publication
        • Bias (100%)
          None Found At Time Of Publication
        • Site Conflicts Of Interest (100%)
          None Found At Time Of Publication
        • Author Conflicts Of Interest (100%)
          None Found At Time Of Publication

        98%

        • Unique Points
          • Anheuser-Busch InBev has been focusing on partnerships with sports organizations and events to drive growth for Michelob Ultra and Busch Light.
          • Bud Light faced intense backlash from customers in April 2023 due to its partnership with transgender influencer Dylan Mulvaney which resulted in a boycott of the brand.
          • Prior to the controversy, Bud Light was the top-selling beer in America.
          • Anheuser-Busch InBev has been working to rehabilitate Bud Light’s image since the boycott.
        • Accuracy
          • Bud Light is the number three beer brand in the US as of July 6, 2024, with a market share of 7.0% based on dollar sales.
          • Modelo Especial is the top beer brand in the US with a market share of 9.3% based on dollar sales.
          • Michelob Ultra is the second top beer brand in the US with a market share of 7.1% based on dollar sales.
        • Deception (100%)
          None Found At Time Of Publication
        • Fallacies (100%)
          None Found At Time Of Publication
        • Bias (100%)
          None Found At Time Of Publication
        • Site Conflicts Of Interest (100%)
          None Found At Time Of Publication
        • Author Conflicts Of Interest (100%)
          None Found At Time Of Publication