Bud Light Loses Top Spot as Most-Sold US Beer for a Second Consecutive Month
Constellation Brands’ Modelo Especial was the top-selling beer brand in the United States for a second straight month in June after taking Bud Light’s top spot in May, according to sales data.
Sales of Anheuser-Busch’s Bud Light and Budweiser dropped 28 percent and 11.7 percent, respectively, for the four weeks ended July 1 from a year earlier, while Modelo Especial sales rose 8.5 percent, according to consulting company Bump Williams, which takes its data from NielsenIQ. Meanwhile, Modelo Especial was the top-selling beer brand in June, with an 8.7 percent share of overall beer sales through retail stores for the period, while Bud Light came in second with a 7 percent share.
Outside the United States, Modelo is also owned by Anheuser-Busch. But inside the United States, under a 2013 Department of Justice agreement, Modelo is owned by New York-based Constellation Brands.
Bud Light, which held the top spot as the most-sold beer in 2022 and in the first four months of this year, has seen sales drop after a backlash from conservatives after it engaged in a social media promotion with transgender activist Dylan Mulvaney. Meanwhile, sales for Bud Light dropped by 28 percent for the week that ended on June 24, consulting data also show, while a number of non-Anheuser-Busch-owned beers like Miller Lite, Coors Lite, Yeungling, and more have seen sales upticks in the same period.
“The Fourth of July is the biggest beer holiday in terms of retail sales and an opportunity to move a lot of volume,” Dave Williams, vice president for analytics and insights at Bump Williams Consulting, told the New York Post last week, referring to the latest sales slump before the July 4th holiday. “And there has been no notable signs where the course has changed for Bud Light.”
Anheuser-Busch InBev’s CEO Michel Doukeris said in a May conference call that it was too early to have a full view of the impact of the backlash against Pride-linked promotions, adding that it was “one can” that was produced as part of the Mulvaney promotion. He and other top executives also said the firm would provide more funding to Bud Light’s marketing over the summer, although neither Mr. Doukeris nor the others have directly addressed the Mulvaney controversy.
As part of a new summer campaign, Bud Light appears to be harking back to older times by rolling out advertisements featuring American flags, U.S. landmarks, and pro athletes. Last month, an ad with Kansas City Chiefs star tight end Travis Kelce was deployed on social media, although some users said Bud Light needs to directly address the controversy or apologize.
When asked about the transgender controversy, Anheuser-Busch’s U.S. division chief, Brendan Whitworth, told CBS News: “Over the last month we’ve talked to over 100,000 consumers and their feedback is very clear.
“The feedback is to reinforce what Bud Light has always meant to them, which is good times, goodwill, and easy enjoyment,” Mr. Whitworth continued to say.
For beer companies, July and August are seen as crucial months as the summer ushers in more beer drinking, according to analysts. Breweries also use the summer months to place more advertisements at various locations, including supermarkets and gas stations.
Other Pushback
At the same time, multiple U.S. retailers have faced pushback from parents and conservatives over the sale and promotion of LGBT merchandise, including items targeting children, during “pride month” in June.
Among them, Target Corp. confirmed several weeks ago that it removed some LGBT-themed items from its shelves amid widespread social media pushback. Some noted that the company was selling a transgender, “tuck-friendly” swimsuit that Target later said was not being sold for children but only for adults.
At the same time, Anheuser-Busch and Target have also faced pushback from left-wing groups who have accused the firms of not providing enough support to LGBT causes. Several Democrat attorneys general recently sent a letter to Target’s chief executive, Brian Cornell, accusing the Minneapolis-based retail giant’s decision to remove some products last month as a setback in the “march for social progress.”
“While we understand the basis for this action, we are also concerned it sends a message that those who engage in hateful and disruptive conduct can cause even large corporations to succumb to their bullying, and that they have the power to determine when LGBTQIA+ consumers will feel comfortable in Target stores—or anywhere in society,” the group of Democrat officials wrote in a letter in June.
Boycotts may also affect the bottom line of Unilever after many social media users and multiple opinion articles called for a boycott of Ben & Jerry’s ice cream after the company made an inflammatory Twitter post on the Fourth of July. That post linked to an article saying that the United States is currently on “stolen land” owned by Native Americans and that the federal government should hand over South Dakota’s Mount Rushmore back.
The Epoch Times has contacted Anheuser-Busch for comment on Monday.
Reuters contributed to this report.
