Bud Light Is No Longer America’s Top-Selling Beer After Boycott
The New York Times (archive.ph)
By J. Edward Moreno
2023-06-14 19:56:46GMT
Bud Light has grappled with a conservative-led boycott that started after Dylan Mulvaney, a transgender influencer, posted a video promoting a Bud Light contest.Credit...Jeff Chiu/Associated Press
Bud Light has been dethroned as the nation’s top-selling beer in recent weeks, a data analytics company said, a sign that the backlash the brewer received from conservatives over its relationship with a transgender influencer may be taking a toll.
Taking its place in the No. 1 spot is Modelo Especial, a Mexican beer made by Constellation Brands, making up 8.4 percent of U.S. retail beer sales in the four weeks that ended June 3, according to Nielsen IQ data analyzed by the consulting firm Bump Williams. Sales of Bud Light fell to 7.3 percent in the same period.
The shift follows a conservative-led boycott against Bud Light that started after Dylan Mulvaney, a transgender influencer, posted a video on Instagram on April 1 promoting a Bud Light contest. Bud Light’s share of retail sales has dropped about three percentage points since the boycott began.
Sales began to dip after commentators and celebrities on the right began to protest. Anheuser-Busch, the maker of Bud Light, later announced the departure of two marketing executives, but the company’s attempt to backtrack drew further criticism, this time from liberals and members of the L.G.B.T.Q. community.
The controversy has spotlighted the challenges brands and retailers like Adidas and Target have faced in marketing to L.G.B.T.Q. consumers in a polarized political environment.
Anheuser-Busch did not immediately respond to a request for comment.
“Bud Light’s missteps felt like a betrayal to both its liberal and conservative customers, and that trust is going to take months, if not years, to rebuild,” said Daniel Korschun, an associate professor of marketing at Drexel University’s LeBow College of Business.
Sales of Bud Light hovered around 10 percent of U.S. retail beer sales until the four weeks that ended on April 22, when it dropped to 8.7 percent, and have trended downward since. Modelo, Coors Light and Miller Lite each saw bumps in their share of the retail beer market in the same period.
Research has shown that the effects of boycotts are often short-lived. Bud Light has dominated the market for at least the past two decades, but in recent years it has faced tough competition, said Dave Williams, the vice president of analytics and insights at Bump Williams.
“I can’t recall any other brand surpassing Bud Light in recent years, though brands such as Modelo Especial and Michelob Ultra have certainly been on an upward trajectory doing their best to narrow the gap between themselves and Bud Light,” Mr. Williams said in an email.
Bud Light still has a stronghold over the American beer market. Based on year-to-date data, it is still the top-selling beer in the United States. It also sells more beer by volume than any other brand.
The data analyzed was only for off-premise sales, meaning it does not consider beer purchases from bars and restaurants.
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Bud Light, top US seller since 2001, loses sales crown to Modelo as beer backlash continues
Associated Press (archive.ph)
By Dee-ann Durbin
2023-06-15 01:58:30GMT
After more than two decades as America’s best-selling beer, Bud Light has slipped into second place.
Modelo Especial, a Mexican lager, overtook Bud Light in U.S. retail dollar sales in the month ending June 3, according to Nielsen data analyzed by Bump Williams Consulting. Modelo controlled 8.4% of U.S. grocery, convenience and liquor store sales; Bud Light fell to 7.3%.
It’s a milestone in Bud Light’s months-long sales decline since early April, when critics who were angered by the brewer sending a commemorative can to transgender influencer Dylan Mulvaney vowed to boycott the brand. Bud Light has also faced backlash from Mulvaney’s fans, who think the brand didn’t do enough to support her.
Dave William, Bump Williams’ vice president of analytics and insights, said Bud Light has been the top-selling U.S. beer since 2001, and it could still retain that crown this year. He noted that Bud Light’s year-to-date market share of 9% is still outpacing Modelo’s, at 8%. And Bud Light’s sales volumes are higher.
But Modelo appears to have the advantage, with its dollar sales increasing by double-digit percentages every week. The launch of a new light beer, Modelo Oro, in May is also boosting awareness of the brand.
Sales in bars and restaurants, which are harder to track, aren’t included in the retail numbers, and Bud Light far outpaced Modelo in those venues prior to April. But David Steinman, the vice president and executive editor of Beer Marketer’s Insights, said Modelo’s bar and restaurant sales have been growing quickly, and it’s believed that Bud Light took an even steeper sales hit in bars and restaurants than in groceries.
Bud Light’s U.S. retail sales were down 24% the week ending June 3, while Modelo Especial sales were up 12%, according to Dave Williams.
Scott Scanlon, an executive vice president at the consulting firm Circana who follows the alcohol market, said Mexican imports like Modelo and Corona have been the biggest bright spots in the otherwise stagnant U.S. beer market for years.
When Modelo first went on sale in the U.S. in the 1990s, it was primarily marketed to Hispanic drinkers, Scanlon said. It launched English-language ads in 2015 and has broadened its consumer base significantly since then. It’s especially popular among younger drinkers, who like its fuller flavor, Scanlon said.
Scanlon said Modelo is already the top seller in markets like Los Angeles and Chicago, but it could still see a lot of growth ahead on the East Coast.
“Modelo was going to become the No. 1 beer brand. It was destiny because the growth numbers we are seeing and have been seeing are astonishing,” Scanlon said. “The only question was time.”
Scanlon said the pandemic accelerated Modelo’s U.S. sales, since it sees more of its sales from retail stores than from bars and restaurants. And Bud Light’s missteps further accelerated its rise.
Grupo Modelo, the Mexican brewer, is owned by Anheuser-Busch InBev, the same parent company of Bud Light. Constellation Brands, a Rochester, New York-based company, has been licensed to sell Modelo in the U.S. since 2013 as part of an agreement with antitrust regulators after InBev bought Grupo Modelo.
Constellation said Wednesday it has nearly doubled its marketing spending on Modelo over the past five years and continues to see a “runway for growth” in the U.S. But Bud Light will try to counter that.
Last month, InBev said it will triple its marketing spending in the U.S. this summer, with a focus on sports and music festivals. Bud Light also continues to be a high-profile sponsor of LGBTQ+ Pride events.
“For the year, Bud Light remains the number one brand in the U.S. nationally in volume and dollar sales,” an Anheuser-Busch spokesperson said Wednesday.
The New York Times (archive.ph)
By J. Edward Moreno
2023-06-14 19:56:46GMT
Bud Light has grappled with a conservative-led boycott that started after Dylan Mulvaney, a transgender influencer, posted a video promoting a Bud Light contest.Credit...Jeff Chiu/Associated Press
Bud Light has been dethroned as the nation’s top-selling beer in recent weeks, a data analytics company said, a sign that the backlash the brewer received from conservatives over its relationship with a transgender influencer may be taking a toll.
Taking its place in the No. 1 spot is Modelo Especial, a Mexican beer made by Constellation Brands, making up 8.4 percent of U.S. retail beer sales in the four weeks that ended June 3, according to Nielsen IQ data analyzed by the consulting firm Bump Williams. Sales of Bud Light fell to 7.3 percent in the same period.
The shift follows a conservative-led boycott against Bud Light that started after Dylan Mulvaney, a transgender influencer, posted a video on Instagram on April 1 promoting a Bud Light contest. Bud Light’s share of retail sales has dropped about three percentage points since the boycott began.
Sales began to dip after commentators and celebrities on the right began to protest. Anheuser-Busch, the maker of Bud Light, later announced the departure of two marketing executives, but the company’s attempt to backtrack drew further criticism, this time from liberals and members of the L.G.B.T.Q. community.
The controversy has spotlighted the challenges brands and retailers like Adidas and Target have faced in marketing to L.G.B.T.Q. consumers in a polarized political environment.
Anheuser-Busch did not immediately respond to a request for comment.
“Bud Light’s missteps felt like a betrayal to both its liberal and conservative customers, and that trust is going to take months, if not years, to rebuild,” said Daniel Korschun, an associate professor of marketing at Drexel University’s LeBow College of Business.
Sales of Bud Light hovered around 10 percent of U.S. retail beer sales until the four weeks that ended on April 22, when it dropped to 8.7 percent, and have trended downward since. Modelo, Coors Light and Miller Lite each saw bumps in their share of the retail beer market in the same period.
Research has shown that the effects of boycotts are often short-lived. Bud Light has dominated the market for at least the past two decades, but in recent years it has faced tough competition, said Dave Williams, the vice president of analytics and insights at Bump Williams.
“I can’t recall any other brand surpassing Bud Light in recent years, though brands such as Modelo Especial and Michelob Ultra have certainly been on an upward trajectory doing their best to narrow the gap between themselves and Bud Light,” Mr. Williams said in an email.
Bud Light still has a stronghold over the American beer market. Based on year-to-date data, it is still the top-selling beer in the United States. It also sells more beer by volume than any other brand.
The data analyzed was only for off-premise sales, meaning it does not consider beer purchases from bars and restaurants.
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Bud Light, top US seller since 2001, loses sales crown to Modelo as beer backlash continues
Associated Press (archive.ph)
By Dee-ann Durbin
2023-06-15 01:58:30GMT
After more than two decades as America’s best-selling beer, Bud Light has slipped into second place.
Modelo Especial, a Mexican lager, overtook Bud Light in U.S. retail dollar sales in the month ending June 3, according to Nielsen data analyzed by Bump Williams Consulting. Modelo controlled 8.4% of U.S. grocery, convenience and liquor store sales; Bud Light fell to 7.3%.
It’s a milestone in Bud Light’s months-long sales decline since early April, when critics who were angered by the brewer sending a commemorative can to transgender influencer Dylan Mulvaney vowed to boycott the brand. Bud Light has also faced backlash from Mulvaney’s fans, who think the brand didn’t do enough to support her.
Dave William, Bump Williams’ vice president of analytics and insights, said Bud Light has been the top-selling U.S. beer since 2001, and it could still retain that crown this year. He noted that Bud Light’s year-to-date market share of 9% is still outpacing Modelo’s, at 8%. And Bud Light’s sales volumes are higher.
But Modelo appears to have the advantage, with its dollar sales increasing by double-digit percentages every week. The launch of a new light beer, Modelo Oro, in May is also boosting awareness of the brand.
Sales in bars and restaurants, which are harder to track, aren’t included in the retail numbers, and Bud Light far outpaced Modelo in those venues prior to April. But David Steinman, the vice president and executive editor of Beer Marketer’s Insights, said Modelo’s bar and restaurant sales have been growing quickly, and it’s believed that Bud Light took an even steeper sales hit in bars and restaurants than in groceries.
Bud Light’s U.S. retail sales were down 24% the week ending June 3, while Modelo Especial sales were up 12%, according to Dave Williams.
Scott Scanlon, an executive vice president at the consulting firm Circana who follows the alcohol market, said Mexican imports like Modelo and Corona have been the biggest bright spots in the otherwise stagnant U.S. beer market for years.
When Modelo first went on sale in the U.S. in the 1990s, it was primarily marketed to Hispanic drinkers, Scanlon said. It launched English-language ads in 2015 and has broadened its consumer base significantly since then. It’s especially popular among younger drinkers, who like its fuller flavor, Scanlon said.
Scanlon said Modelo is already the top seller in markets like Los Angeles and Chicago, but it could still see a lot of growth ahead on the East Coast.
“Modelo was going to become the No. 1 beer brand. It was destiny because the growth numbers we are seeing and have been seeing are astonishing,” Scanlon said. “The only question was time.”
Scanlon said the pandemic accelerated Modelo’s U.S. sales, since it sees more of its sales from retail stores than from bars and restaurants. And Bud Light’s missteps further accelerated its rise.
Grupo Modelo, the Mexican brewer, is owned by Anheuser-Busch InBev, the same parent company of Bud Light. Constellation Brands, a Rochester, New York-based company, has been licensed to sell Modelo in the U.S. since 2013 as part of an agreement with antitrust regulators after InBev bought Grupo Modelo.
Constellation said Wednesday it has nearly doubled its marketing spending on Modelo over the past five years and continues to see a “runway for growth” in the U.S. But Bud Light will try to counter that.
Last month, InBev said it will triple its marketing spending in the U.S. this summer, with a focus on sports and music festivals. Bud Light also continues to be a high-profile sponsor of LGBTQ+ Pride events.
“For the year, Bud Light remains the number one brand in the U.S. nationally in volume and dollar sales,” an Anheuser-Busch spokesperson said Wednesday.
