More Bad News for Bud Light

Bud Light’s decades-long reign as the top beer on tap in U.S. bars has officially come to an end, as Michelob Ultra has now taken the top spot.

According to data from Draftlines Technologies, which tracks over 1 million draft lines across the country, Michelob Ultra surpassed Bud Light in share of U.S. draft taps late last year, marking a significant shift for the once-dominant brand.

Bud Light’s decline began mid-2023 following a consumer boycott triggered by a promotional collaboration with transgender influencer Dylan Mulvaney. The backlash led to a dip in demand, with some bars even pulling Bud Light from their taps—worsening the brand’s sales struggles.

Draftlines founder Jennifer Hauke described the shift as “reflecting evolving consumer preferences,” noting that Michelob Ultra has steadily been gaining ground for years. The beer’s positioning as a low-carb, health-conscious option has resonated with drinkers seeking alternatives beyond traditional light beers.

“Michelob Ultra carries ideas of aspiration, activity, and personality in ways Bud Light simply doesn’t,” said Bryan Roth, analyst for Feel Goods Company. He highlighted Michelob Ultra’s broad appeal, which contrasts with Bud Light’s challenges in retaining its once-loyal customer base.

A-B InBev, the parent company of both Bud Light and Michelob Ultra, acknowledged the shift but celebrated its success in maintaining the top two draft beers in the U.S. “Bud Light remains more than 30% bigger than the next closest draft competitor,” an A-B InBev spokesperson stated.

Beyond taps, Michelob Ultra has grown its influence with high-profile sports sponsorships, including partnerships with Team USA for the Olympics, Major League Soccer, and Copa America. The brand will expand its offerings further in 2024 with a non-alcoholic version.

Meanwhile, Bud Light has been focused on reclaiming its audience, ramping up efforts with campaigns targeting conservative drinkers. The beer became the official sponsor of the UFC and maintained strong advertising during college and professional football seasons.

Despite the setbacks, A-B InBev’s recent earnings report showed signs of improvement in North America, with beer volumes stabilising after a steep 18% decline a year earlier. The growth of Michelob Ultra and Busch Light has played a key role in steadying the company’s performance.

While Bud Light’s fall signals the end of an era, Michelob Ultra’s rise highlights a broader consumer trend: demand for beers that align with active lifestyles and changing tastes.