The U.S. beer market has seen a drastic shift, with Anheuser-Busch InBev’s Bud Light no longer topping the leaderboard. Following backlash from conservatives over a social media campaign featuring transgender influencer Dylan Mulvaney, Bud Light’s sales have plummeted over the past several weeks.
The unprecedented shift in the U.S. beer market has been primarily driven by Modelo’s popularity among younger consumers who prefer its stronger flavor. Modelo has been steadily increasing its consumer base since it began its English-language advertising campaign in 2015, and is already the top-selling beer in certain parts of the U.S. like Los Angeles and Chicago.
According to consultant Bump Williams, sales of Bud Light and Budweiser fell by 24.6% and 9.2%, respectively, in the four weeks ended June 3, in comparison to the same period a year ago. This is in stark contrast to Constellation Brands’ Modelo Especial, which saw an impressive 10.2% rise in sales. Constellation’s Modelo Especial now holds an 8.4% share of total retail sales, firmly ordering Bud Light’s 7.3% into second place.
AB InBev CEO Michel Doukeris commented in May that it was too soon to see the full impact of the boycott, yet TD Cowen analyst Vivien Azer claims the recent 12% decline in sales growth fully reflects the boycott. Prior to the boycott, Euromonitor International noted that over the past six years, sales volume of all light brands had already begun declining at a faster rate than that of the U.S. beer sector as a whole. This is due to the rise in popularity of craft beers and hard seltzers, both of which have been attracting consumers away from Bud Light.
Anheuser-Busch InBev has already addressed the controversy, releasing a statement that the company “support[s] great causes including acceptance and inclusion for every member of our community, regardless of background or identity.” Bud Light may need to find a strategy to both meet consumer demands and remain true to its values if it wants to reclaim its spot at the top of the U.S. beer market.