The American beer industry has a new pecking order, with Bud Light’s dramatic fall from its throne as the top-selling beer now at third place in the United States.
According to recent data from Bump Williams Consulting, Modelo Especial now leads U.S. beer sales with a 9.3% market share, followed by Michelob Ultra at 7.1%. Bud Light, once the undisputed king of American beers, has slipped to third place with 7.0% of dollar sales.
The catalyst for Bud Light’s downfall can be traced back to April 2023, when the brand partnered with transgender influencer Dylan Mulvaney. This move, which included sending Mulvaney custom beer cans to celebrate “365 days of girlhood,” sparked a fierce backlash among the brand’s core consumers.
Adding fuel to the fire were comments from Bud Light’s then-marketing vice president, Alissa Heinerscheid. She expressed a desire to update what she called the brand’s “fratty” and “out-of-touch” image.
These remarks, coupled with the Mulvaney partnership, led to widespread calls for a boycott from conservative influencers and celebrities.
Today marks 1 year since Bud Light made Dylan Mulvaney their brand ambassador
They lost 1,400,000,000 since this ad: pic.twitter.com/Jfs80GVTTd
— End Wokeness (@EndWokeness) April 1, 2024
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The impact of this misstep was immediate and severe. As the consulting firm noted, “Bud Light is still the #1 selling beer in the United States on a volume basis (cases) and has started to recover from the Dylan Mulvaney situation that occurred on April 1st of 2023.” However, the brand’s dollar sales have yet to return to positive growth, though the declines have slowed in recent weeks.
Anheuser-Busch InBev, Bud Light’s parent company, has been working to repair the brand’s image. An Anheuser-Busch spokesperson highlighted their focus on traditional marketing strategies, stating, “We are focused on what we do best – brewing great beer for everyone and earning our place in the moments that matter.”
The company pointed to partnerships with major sports organizations like the NBA, PGA, NASCAR, and Team USA as key drivers of growth for their other brands.
Interestingly, while Bud Light struggles, other Anheuser-Busch brands like Michelob Ultra have seen success. The consulting firm attributes Michelob Ultra’s rise to effective advertising, consumer acceptance, retail support, and its focus on health and wellness trends.
Bud Light’s attempt to appeal to a new demographic backfired spectacularly, alienating loyal consumers who felt the brand no longer represented their values.
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Bud Light’s journey back to the top will be a long and challenging one, if it is even possible. Brands must carefully consider the potential repercussions of wading into contentious social issues, especially when such moves may be perceived as forced or inauthentic by their existing customer base.
