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Bud Light Boycott Fallout: Brand Falls to Third in U.S. Beer Sales

Bud Light

Bud Light’s troubles persist as it slips to third place in U.S. beer sales, overtaken by Michelob Ultra, which now holds the second spot behind the leading Modelo. This shift highlights the enduring impact of the 2023 boycott that saw Bud Light lose its former top position.

Over a year after the boycott erupted in response to Bud Light’s partnership with transgender influencer Dylan Mulvaney, the brand is still reeling from the fallout. During the four weeks ending July 6, the U.S. beer market was led by Modelo, which has held the top position since May of the previous year, with a 9.7% market share. Michelob Ultra followed with a 7.3% share, while Bud Light trailed at 6.5%. Corona Extra ranked just below with a 6% share. This period, which includes the pivotal July Fourth weekend, is critical for assessing annual beer sales performance, according to the Wall Street Journal.

Despite Bud Light’s continued decline, its parent company, Anheuser-Busch InBev, has seen a rise in sales of its other brands like Michelob Ultra and Busch Light. However, the company’s shares have dipped 4% year-to-date. The impact of the boycott has been significant: Bud Light lost $1.4 billion in U.S. sales last year, with its market value plummeting by over $27 billion. The brand’s U.S. market share has been halved, partly due to retailers reducing shelf space by up to 7.5%. Meanwhile, Modelo Especial from Constellation Brands has captured substantial market share. AB InBev aims to boost Michelob Ultra’s visibility through sponsorships at Copa América and the Paris Olympics this summer.

Bud Light found itself at the center of a cultural and political storm last year after collaborating with Dylan Mulvaney, a transgender influencer known for documenting her transition on social media. Alissa Heinerschied, the then-vice president of marketing, aimed to rebrand Bud Light with a more inclusive image, moving away from its “fratty” persona. This move, however, triggered backlash from the brand’s traditional customer base and led to a political crisis. Florida Governor Ron DeSantis criticized the company for allegedly breaching its obligations to shareholders, while LGBTQ+ advocates accused the brand of failing to adequately support Mulvaney. The controversy led to a widespread boycott, severely damaging Bud Light’s reputation and sales in the U.S.

In an unexpected twist ahead of the Super Bowl this year, former President Donald Trump endorsed Bud Light despite previously criticizing the brand on Truth Social. After condemning the company’s advertisement featuring Mulvaney, Trump later praised Bud Light for employing thousands of Americans, calling it a “Great American brand” deserving of a “Second Chance.” This endorsement briefly boosted AB InBev’s shares by 5%, according to the Wall Street Journal.

Here’s a snapshot of the top ten U.S. beer brands by market share for the four weeks ending July 6, based on Bump Williams Consulting analysis:

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