By Ananya Mariam Rajesh
(Reuters) – Anheuser-Busch InBev’s Bud Light has lost its top spot in the U.S. beer market to Constellation Brands’ Modelo Especial, following a backlash from conservatives over a social media promotion with transgender influencer Dylan Mulvaney.
Sales of Bud Light and Budweiser dropped 24.6% and 9.2%, respectively, for the four weeks ended June 3 from a year earlier, while Modelo Especial sales rose 10.2%, according to consulting company Bump Williams, which sources data from NielsenIQ.
In May, AB InBev CEO Michel Doukeris said it was too early to have a full view of the impact due to the backlash.
“Bud Light’s stumble with Dylan Mulvaney will certainly hurt their chances to take market share, but Miller Lite, Coors Light and Modelo will reap most of those rewards,” said Jon Reynolds, a certified instructor in the business of craft beer at the University of Vermont.
Constellation’s Modelo Especial was the top selling beer brand in the United States with an 8.4% share of overall beer sales through retail stores for the period, Bump Williams data showed.
Bud Light came in second with a 7.3% share.
AB InBev’s overall sales growth declined 12% in the four weeks ended May 20, data from NielsenIQ and TD Cowen showed.
TD Cowen analyst Vivien Azer said the decline would “fully capture the boycott,” compared with the 3.6% decline in sales growth AB InBev witnessed for the four weeks ended April 22.
Even before the backlash, sales volumes of established “light” brands have slid at a faster pace than the U.S. beer sector as a whole over the past six years, according to Euromonitor International, as first craft beers then hard seltzers lured drinkers away.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Anil D’Silva)
