Bud Light beer’s May sales decline compared to Modelo amid fallout from anti-LGBTQ controversy.

Last month, Bud Light relinquished its leading position in the U.S. beer market due to a decline in sales. This decline was largely attributed to the controversy surrounding its collaboration with transgender social media influencer Dylan Mulvaney.

According to NielsenIQ data from consulting firm Bump Williams, Modelo took the lead by capturing 8.4% of beer sales from retail stores in the four weeks ending on June 3. Bud Light, on the other hand, trailed behind with a 7.3% market share during the same period.

The data reveals a significant decline in Bud Light sales, dropping by 24.6% compared to the previous year, while Modelo experienced a remarkable increase of 10.2%.

Nevertheless, Anheuser-Busch InBev’s Bud Light continues to dominate beer sales in the United States for the year as a whole, as stated by Bump Williams.

This setback for AB InBev represents one of the few instances where online backlash has resulted in a notable and sustained decline for a major brand. Since Mulvaney’s video featuring a personalized Bud Light can sparked anti-LGBTQ+ outrage, the company’s shares have plummeted nearly 15% since the beginning of April.

In response to the backlash, the company failed to either defend the promotion with Mulvaney or appease the conservative groups who opposed the marketing campaign.

“We never intended to participate in a conversation that divides people. We are in the business of fostering unity and togetherness over a refreshing beer,” expressed Anheuser-Busch CEO Brendan Whitworth in an official statement released in April.

The boycott against Bud Light comes at a time when state and federal politicians are increasingly seeking to revoke the rights of transgender individuals. Over the past few months, hundreds of state laws have targeted the transgender community, further marginalizing them.

In recent years, major companies have been embracing inclusivity and marketing to transgender and LGBTQ+ individuals. However, the growing hostility towards these campaigns has hindered their progress in certain instances.

Target, for example, recently withdrew some of its Pride merchandise after incidents where certain customers threatened employees over the display of Pride items. The union representing Starbucks baristas also claimed that employees at numerous stores were prohibited from putting up Pride decorations.

A Target spokesperson stated that the retailer had faced threats affecting the safety and well-being of their team members, which led to the removal of unspecified items that had sparked confrontational behavior. The spokesperson emphasized Target’s ongoing commitment to the LGBTQIA+ community, both during Pride Month and throughout the year.

Starbucks clarified in a statement that there had been no changes to the company’s policy on decorations and encouraged its stores to celebrate Pride month.