Bud Light, once a dominating force in the beer market, is facing a significant setback as sales continue to plummet during the crucial summer season. Recent industry data reveals a disheartening 28% drop in sales for Bud Light during the week ending June 24, compared to last year. In contrast, Yuengling Lager, Coors Light, and Miller Lite experienced growth rates of 22%, 19%, and 16%, respectively, during that same week.
This downward trend has left Bud Light with a staggering loss of approximately $26.3 million compared to the previous year, according to consumer behaviour data analytics firm Circana. Coors Light and Modelo Especial, a popular Mexican pilsner, generated roughly $10.4 million in additional sales during the same time frame, exacerbating Bud Light’s struggle.
The Fallout from the Dylan Mulvaney Controversy
This prolonged sales decline for Bud Light follows a promotional blunder involving TikTok star Dylan Mulvaney, a trans rights activist and actress. The controversy surrounding Mulvaney’s association with the brand ignited a backlash among conservatives, including notable figures like Kid Rock and Travis Tritt, who called for a boycott of Bud Light.
Furthermore, members of the LGBTQ+ community, feeling betrayed by the brand’s attempt to distance itself from Mulvaney and the original promotion, initiated other boycotts. Consequently, Bud Light relinquished its title as America’s best-selling beer in May, with a staggering 23% drop in sales, equivalent to $297 million in revenue for the four weeks ending May 28.
Marketing Efforts and Customer Confidence
Bud Light has made strategic adjustments to restore customer confidence and revive sales. One such measure includes the release of a new commercial titled “Backyard Grunts with Travis Kelce,” featuring Kansas City Chiefs tight end Travis Kelce. Embracing retro themes, the advertisement portrays Kelce and other men dressed in casual summer attire settling into lawn chairs with amusing grunts and groans.
This recent promotion follows a nostalgia-filled ad released in June on Youtube, which showcased beachgoers, fishermen, and cookout attendees, accompanied by the ’70s disco hit “Good Times” by Chic.
Bud Light’s Market Position
Despite declining sales, Bud Light maintains its position as the top-selling beer in volume, surpassing all competitors year to date. However, a rising contender, Modelo Especial, is gaining momentum and poses a potential threat. In its latest report, Bump Williams emphasizes that while Modelo maintains an advantage in dollar sales, Bud Light leads in volume sales.
Crucial Summer Months and Future Plans
July and August are pivotal for Bud Light sales, as the summer brings more holidays and increased beer consumption. Breweries, including Bud Light, capitalize on this opportunity by strategically placing in-store displays at grocers and gas stations to bolster sales.
To counter the sales slump, Bud Light’s parent company, Anheuser-Busch InBev (ABI), plans to triple its investment in the brand this year. ABI aims to leverage the upcoming summer campaign and prepare for the NFL season, showing confidence in the potential for a sales turnaround.
Bud Light’s struggle to rebound from its sales slump continues as the summer months progress. Despite being dethroned as America’s best-selling beer, the brand remains dominant in volume sales. To regain consumer confidence and reignite sales, Bud Light has adopted retro-themed marketing strategies and enlisted the help of prominent figures like Travis Kelce.
As the crucial summer season unfolds, the beer market will closely monitor Bud Light’s performance, anticipating a potential resurgence in sales.
