America’s Beer King Dethroned

In a significant shift, Modelo Especial, the Mexican lager brewed by Constellation Brands near Mexico City, has emerged as the top-selling beer in May, dethroning Bud Light from its longstanding position.

This development further highlights the challenges faced by the Anheuser-Busch brand, particularly after a transgender influencer’s Instagram post featuring a customized Bud Light can caused controversy.

According to NIQ data shared with consulting firm Bump Williams, Modelo secured 8.4% of US retail beer sales over a four-week period ending on June 3, surpassing Bud Light, which dropped to second place with 7.3%.

Dollar sales painted a similarly discouraging picture for Bud Light, with a decline of 24.4%, while Modelo experienced growth of 12.2% during that period.

This downward trend does not appear to be reversing in favor of Bud Light, according to Bump Williams. The consulting firm stated that Modelo Especial’s sales growth seems to be increasing with each passing week as the summer season progresses.

Williams highlighted the positive start of Modelo Oro, the brand’s new low-carb beer, following its launch in May, as an additional factor contributing to the overall sales boost for Modelo.

In recent years, there has been a noticeable shift in consumer preference towards Mexican beers and spirits like tequila and mezcal.

Williams attributed Modelo’s rise to the top-selling position (at least for May) to several factors, including strong support from retailers, effective advertising, appealing packaging, and a “springboard effect” from the Cinco de Mayo celebration transitioning into the summer season.
Greg Gallagher, vice president of brand marketing for Constellation, expressed satisfaction with Modelo’s ongoing success and revealed their intention to expand the brand’s dominance beyond Hispanic drinkers to attract customers from diverse demographics.

Gallagher stated, “Our growth is in maintaining that core but also bringing in non-Hispanic customers, and we’re having incredible success.”

Anheuser-Busch, the parent company of Bud Light, can find solace in the fact that Bud Light remains the top-selling beer on a year-to-date basis among American-made beers.

However, other beers within the Bud Light family, such as Michelob Ultra, Natural Light, and Busch Light, also experienced sales declines during the same period compared to previous weeks.

Over the past few weeks, Bud Light sales have seen a decline of around 25% weekly, likely influenced by negative coverage from right-wing media following the brand’s partnership with Dylan Mulvaney and its perceived inadequate response to the controversy, which angered LGBTQ+ advocates.

The provision of a single can featuring Mulvaney’s face for a social media post led to criticism from prominent conservative figures, and transphobic comments flooded social media platforms.