Bud Light Falls to Third Place in US Beer Sales

Bud Light, once the leading beer in the United States, has now slipped to third place in the market following a challenging year marked by a significant boycott.

According to data from NIQ shared by Beer Marketer Insights, Michelob Ultra, also brewed by Anheuser-Busch, has overtaken Bud Light to become the second-best selling beer in grocery and convenience stores during the key sales period between Memorial Day and the Fourth of July. Modelo Especial, produced by Constellation Brands, continues to hold the top spot after surpassing Bud Light last year.

For the four weeks ending July 6, Bud Light accounted for 6.5% of beer dollar sales at retail stores, while Michelob Ultra captured 7.3%. Modelo Especial led the market with a 9.7% share.

Bud Light’s decline began in April 2023 following a boycott triggered by a sponsored Instagram post featuring transgender influencer Dylan Mulvaney. The post attracted criticism from conservative groups and the brand’s subsequent response led to backlash from the left, causing lasting damage to sales.

Michelob Ultra’s rise is not just a result of Bud Light’s struggles. Anheuser-Busch has significantly increased marketing efforts for Michelob Ultra, targeting health-conscious consumers with a low-carb, flavorful beer. The brand has sponsored the Copa America soccer tournament and is now the official beer sponsor for Team USA, with ads set to dominate the upcoming Olympics. Special-edition packaging featuring the Team USA logo and the American flag has also been released to appeal to patriotic consumers.

In an effort to regain its market position, Bud Light has shifted its marketing to appeal to conservative audiences. The brand has become the official beer of the UFC, sponsored music festivals with country artists, and plans to maintain a strong advertising presence during the upcoming NFL season.

Despite the setbacks, an Anheuser-Busch spokesperson stated, “Millions of consumers choose Bud Light every day, and the beer brand will always be a mainstay of our iconic portfolio.”