Bud Light, the nation’s top-selling beer, has experienced a continued decline in sales leading up to the important Fourth of July holiday, following the controversy involving Dylan Mulvaney. According to data from NielsenIQ and Bump Williams Consulting, sales for Bud Light dropped by 27.9% in the week ending June 24, slightly better than the previous week’s record low of 28.5%. The number of units sold also plummeted by 31.3% compared to the same time last year. This decline is concerning as the Fourth of July is a major beer holiday for retail sales, and there have been no signs of improvement for Bud Light, as noted by Dave Williams, vice president of the consultancy.
The decline in Bud Light sales began on April 1 when Dylan Mulvaney, a transgender influencer, posted photos and videos of herself drinking Bud Light and claiming to be a brand partner. The resulting backlash has caused Bud Light’s parent company, Anheuser-Busch, to lose $27 billion in market capitalization, putting the beer’s long-standing reign as the top choice in jeopardy. Sales have been steadily declining since the partnership with Mulvaney.
Mulvaney recently spoke out against the boycotts and Anheuser-Busch, accusing the brewer of abandoning her. However, other brands owned by Anheuser-Busch, such as Michelob Ultra and Budweiser, did not see significant changes in sales during the same reporting period. Michelob Ultra’s sales declined by 4.4% compared to the previous week’s 4% decline, while Budweiser’s sales were down 12.1% compared to the previous week’s 12.3% decline, according to the consultancy. To entice beer drinkers, Anheuser-Busch is offering rebates for struggling brands and launching a new advertising campaign for Bud Light.
In the meantime, Modelo Especial, the second-largest beer brand, has been gaining market share from Bud Light. Although Modelo’s international distribution is controlled by AB InBev, its US operations are owned by Constellation Brands. In the week ending June 24, the number of Modelo units sold increased by 6.4% compared to a 4.5% increase the previous week. Since May, Modelo has been outselling Bud Light, and as of June 24, it controlled an 8.6% market share compared to Bud Light’s 7.1%.
Dave Williams believes that Bud Light’s decline will continue unless something significant happens to win back customers. Retailers and distributors are closely monitoring these weekly reports to determine how much shelf space to allocate to different beer brands. As Bud Light continues to decline, there is a possibility that it may lose valuable shelf space to other growing brands.
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