Bud Light, once the reigning champion of American draft beers, continues to experience a decline in its market position.
According to a statement from Anheuser-Busch InBev, Bud Light has been surpassed by Michelob Ultra, also owned by the company, as the top draft beer in the United States. Anheuser-Busch also owns Corona, Budweiser, and Stella Artois, among other popular beer brands.
“We’re proud to have the top two beers on draft in the U.S. in Michelob Ultra and Bud Light, and by our data, Bud Light is more than 30% bigger than the next closest competitor,” the spokesperson told NTD News in an emailed statement, citing public Circana data.
They said beyond just draft beers, Michelob Ultra is leading the industry as the number one overall fastest-growing beer in the United States and also the second overall beer brand in the country, behind Bud Light in that category.
This shift in rankings followed a difficult year for Bud Light, which faced a widespread boycott.
In July, Bud Light fell to third place in overall sales at grocery and convenience stores during the critical period between Memorial Day and July 4th. Michelob Ultra claimed the second spot, while Modelo Especial, manufactured by rival Constellation Brands, secured the top position.
The boycott, which began in response to Bud Light’s partnership with transgender influencer Dylan Mulvaney, has had far-reaching impacts for Anheuser-Busch InBev.
In May, the company reported its first-quarter earnings results for 2024, which showed a 9.1 percent decrease in revenues in the United States, primarily attributed to a drop in Bud Light volume. During the same period, Anheuser-Busch reported global revenues increased by 2.6 percent, largely due to strong sales of Corona beer outside of Mexico. Overall revenue rose to $14.5 billion, surpassing Wall Street’s forecast of $14.3 billion, according to analysts polled by FactSet.
At the time, Anheuser-Busch CEO Michel Doukeris said he was optimistic about the company’s performance.
“The strength of the beer category, our diversified global footprint and the continued momentum of our megabrands delivered another quarter of broad-based top-and bottom-line growth,” Doukeris said.
“We are encouraged by our results to start the year, and the consistent execution by our teams and partners reinforces our confidence in delivering on our 2024 growth ambitions.”
In an effort to rebuild its image, Anheuser-Busch has undertaken several strategic partnerships.
The company became the “official beer partner” of the UFC, a mixed martial arts league, and secured sponsorship deals with the U.S. Olympic team for its Michelob Ultra brand. Additionally, Corona Cero, AB InBev’s zero-alcohol beer, will be the global beer sponsor of the 2028 Olympic Games in Los Angeles.
From NTD News
