Bud Light has been dethroned by Modelo Especial as the best-selling beer in the U.S., according to a report, following a boycott of Bud Light that began in April in response to its partnership with trans influencer Dylan Mulvaney.
Modelo accounted for 8.4% of U.S. retail beer sales in the four weeks ending June 3, the Wall Street Journal reported Tuesday , citing an analysis of Nielsen data by beer-industry tracker Bump Williams Consulting. For Bud Light, the Journal said, that figure stood at 7.3%. According to the report, Bud Light sales plunged 24% year over year for the week ended June 3, though Bud Light is still the top-selling beer overall through the first five months of the year.
Other observers of industry sales have also, in recent days, noted Modelo’s usurping of Bud Light at the top. Last week, CBS News, citing data from Circana, reported that Modelo Especial was the nation’s best-seller, by dollar amount, in May.
Fueled by anti-trans sentiment that LGBTQ+ advocacy groups say has been coordinated, the boycott has led to a sharp drop in Bud Light sales in recent weeks. Those sales declines have generally been above 20%. Sales of other beers owned by Bud Light’s parent, Anheuser-Busch InBev
BUD,
also suffered in the process.
Modelo is owned by Constellation Brands Inc.
STZ,
in the U.S., but is part of AB InBev elsewhere in the world.
Analysts at BofA, in a note last week, said the boycott had lasted long enough to boost sales of Molson Coors Beverage Co.
TAP,
one of AB InBev’s main rivals.
“It’s difficult to determine the duration of the boycott, but it has already lasted longer than industry executives anticipated and appears likely to impact the July 4th holiday,” BofA analysts said in a research note.
Prior to the boycott, demand for Bud Light and other light beers had begun to wane, amid a decade-plus-long rise of alternatives like craft beer and seltzer.
Shares of AB InBev closed up 0.9% on Tuesday. Shares have fallen about 7% over the past month, but are still up 9% over the past 12 months.
Constellation shares are up 9% over the past month, and have risen about 7% over the past year.
This post was originally published on Market Watch
