Bud Light, the top-selling beer in the US, has lost its top rank due to a boycott following its partnership with influencer Dylan Mulvaney.
Bud Light’s sales decline due to controversial partnership
The beer brand, once the nation’s top-selling beer brand, has now fallen to the third position in the US market, according to data analyzed by NielsenIQ.
This significant decline is the result of Bud Light’s partnership with Dylan Mulvaney.
She is a highly influential figure on TikTok and Instagram.
This partnership was built to promote the brand during the 2023 March Madness event.
Bud Light’s decision to feature Mulvaney’s image on its beer cans sparked a massive backlash from conservative consumers.
It led to a widespread boycott of the brand and had a severe impact on Bud Light’s sales performance.
Modelo Especial takes the top spot in the US beer market
Recent data analyzed by the Bump Williams consulting firm from NielsenIQ indicates that Modelo Especial, a Mexican beer sold by Constellation Brands, has taken the lead in the US beer market.
It has emerged as the new top brand in terms of sales and popularity.
During the four weeks ending on July 6, Modelo Especial accounted for 9.7% of beer dollar sales in US stores, securing the top spot.
In the rankings, Michelob Ultra, another brand owned by Anheuser-Busch InBev, secured the second position, with 7.3% of beer dollar sales nationwide.
Bud Light, on the other hand, trailed behind in third place, representing only 6.5% of beer dollar sales within the same four-week period.
These figures, initially reported by The Wall Street Journal, have prompted inquiries seeking comments from Anheuser-Busch InBev and Constellation Brands.
Bud Light’s market share decline following controversial marketing decision
Before April of last year, Bud Light had a significant lead in market share compared to its rivals.
These competitors included Modelo Especial, Michelob Ultra, and Coors Light, which is owned by Molson Coors.
However, in February 2023, Bud Light chose its marketing department.
They decided to employ Dylan Mulvaney, a well-known social media influencer who identifies as transgender and has a large following on platforms such as TikTok and Instagram.
Dylan Mulvaney has millions of followers who engage with their content.
Mulvaney was enlisted to promote the brand as part of a special March Madness promotion.
She showcased a custom-made can of Bud Light featuring her image and likeness.
Unfortunately for Bud Light, this marketing move sparked a strong backlash among conservatives, who initiated a nationwide boycott of the brand.
Consequently, Bud Light’s sales took a substantial hit, leading to a decrease in shelf space allocated to the product by retailers.
The ongoing sales decline and its efforts to recover
Despite indications that the boycott has been lifted, the negative impact on sales has persisted.
Former President Donald Trump even used his Truth Social platform earlier this year to defend Bud Light’s parent company, asserting that it was not a “woke” business.
Furthermore, Bud Light entered into a marketing and sponsorship agreement with the Ultimate Fighting Championship (UFC).
It is an organization whose fan base predominantly leans rightward..
The beer brand struggle to regain market position amid changing consumer preferences
Despite its best efforts, Bud Light has faced challenges in reclaiming its former dominant position.
This struggle is primarily attributed to the increasing inclination of younger consumers towards legal marijuana and non-alcoholic beverages.
This shift in consumer choices has created a challenge for Anheuser-Busch InBev.
This was evidenced by their stock price performance, which has underperformed compared to the broader market index in the past year.
Amidst facing setbacks, a spokesperson for Anheuser-Busch InBev emphasized their commitment to branding partnerships with the NFL, UFC, and well-known musicians.
They highlighted Bud Light’s enduring presence in the market.
The spokesperson expressed confidence in the company’s consistent strategy.
They also believe in the significant investments in their brand portfolio, such as Michelob Ultra and Busch Light.
They reaffirmed the company’s commitment to brewing great beer and earning a place in the significant moments of consumers’ lives.