After more than two decades as America’s best-selling beer, Bud Light has slipped into second place — a massive victory for conservative consumers that vowed to boycott the brand after it started “woke” advertising.
Modelo Especial, a Mexican lager, overtook Bud Light in U.S. retail dollar sales in the month ending June 3, according to Nielsen data analyzed by Bump Williams Consulting. Modelo controlled 8.4% of U.S. grocery, convenience and liquor store sales; Bud Light fell to 7.3%.
It’s a milestone in Bud Light’s months-long sales plummet since early April, when critics were angered by the brewers endorsement of “woke” transgender activist Dylan Mulvaney. Conservatives vowed to boycott the brand.
Dave William, Bump Williams’ vice president of analytics and insights, said Bud Light had been the top-selling U.S. beer since 2001, and it could still retain that crown this year. He noted that Bud Light’s year-to-date market share of 9% is still outpacing Modelo’s, at 8%. And Bud Light’s sales volumes are higher.
But Modelo appears to have the advantage, with its dollar sales increasing by double-digit percentages every week as conservatives flock to the brand. The launch of a new light beer, Modelo Oro, in May is also boosting awareness of the brand.
Sales in bars and restaurants, which are harder to track, aren’t included in the retail number. Bud Light far outpaced Modelo in those venues prior to April. But David Steinman, the vice president and executive editor of Beer Marketer’s Insights, said Modelo’s bar and restaurant sales have been growing quickly, and it’s believed that Bud Light took an even steeper sales hit in bars and restaurants than in groceries because consumers don’t want to be seen drinking the “woke” brand.
Bud Light’s U.S. retail sales were down 24% the week ending June 3, while Modelo Especial sales were up 12%, according to Dave Williams.
Scott Scanlon, an executive vice president at the consulting firm Circana who follows the alcohol market, said Mexican imports like Modelo and Corona have been the biggest bright spots in the otherwise stagnant U.S. beer market for years.
When Modelo first went on sale in the U.S. in the 1990s, it was primarily marketed to Hispanic drinkers, Scanlon said. It launched English-language ads in 2015 and has broadened its consumer base significantly since then. It’s especially popular among younger drinkers, who like its fuller flavor, Scanlon said.
Scanlon said Modelo is already the top seller in markets like Los Angeles and Chicago, but it could still see a lot of growth ahead on the East Coast.
“Modelo was going to become the No. 1 beer brand. It was destiny because the growth numbers we are seeing and have been seeing are astonishing,” Scanlon said. “The only question was time.”
Scanlon said the pandemic accelerated Modelo’s U.S. sales, since it sees more of its sales from retail stores than from bars and restaurants.
Bud Light’s missteps accelerated its rise to become the new King of Beers.
Despite the downturn, InBev promised that Bud Light will continue to be a high-profile sponsor of LGBTQ+ Pride events.
“For the year, Bud Light remains the number one brand in the U.S. nationally in volume and dollar sales,” an Anheuser-Busch spokesperson said Wednesday.
The Associated Press contributed to this article