For This Controversial Reason, Bud Light Loses the Top Position in US Beer Sales After Two Decades

After more than 20 years as the most popular beer in America, Bud Light has fallen to second place.

In the U.S. retail dollar sales for the month of June 3, Modelo Especial, a Mexican lager, surpassed Bud Light, according to Nielsen data evaluated by Bump Williams Consulting. In the United States, Modelo held 8.4% of sales in grocery, convenience, and liquor stores, while Bud Light dropped to 7.3%.

It marks a turning point in Bud Light’s months-long sales slide since early April, when haters pledged to boycott the company after it gave a commemorative can to transgender influencer Dylan Mulvaney. Fans of Mulvaney have also criticized Bud Light, claiming that the company didn’t do enough to support her.

Since 2001, Bud Light has been the most popular beer in the United States, according to Dave William, vice president of analytics and insights at Bump Williams, and it may continue to hold that position this year. He pointed out that Modelo’s 8% market share is still being trailed by Bud Light’s 9% year-to-date market share. Additionally, sales of Bud Light are higher.

However, Modelo seems to be ahead as seen by the weekly double-digit growth in its dollar sales. Modelo Oro, a new light beer that was introduced in May, is helping to increase brand recognition.

The retail figures do not account for sales at bars and restaurants, which are more difficult to trace. Prior to April, Bud Light significantly outsold Modelo in these establishments. However, according to David Steinman, vice president and executive editor of Beer Marketer’s Insights, Modelo sales at bars and restaurants have been increasing swiftly, and it’s thought that Bud Light suffered a worse sales decline in these venues than it did in supermarkets.

According to Dave Williams, Modelo Especial sales increased 12% while Bud Light sales fell 24% for the week ending June 3.

The Mexican imports Modelo and Corona have been the brightest bright spots in the mostly flat U.S. beer industry for years, according to Scott Scanlon, an executive vice president at the research company Circana who monitors the alcohol business.

Modelo was predominantly promoted to Hispanic drinkers when it initially went on sale in the United States in the 1990s, according to Scanlon. It began running English-language advertisements in 2015 and has since greatly expanded its customer base. Younger drinkers particularly like it for its richer taste, according to Scanlon.

Modelo, according to Scanlon, is now the top seller in cities like Los Angeles and Chicago, but there is still room for significant development on the East Coast.

“Modelo was destined to overtake all other breweries. The growth rates we are and have been witnessing are astounding, therefore it was destined, according to Scanlon. “Time was the only issue.”

Since retail outlets account for a larger portion of Modelo’s sales than pubs and restaurants do, Scanlon said that the epidemic boosted the company’s U.S. sales. And Bud Light’s errors hastened its ascent even further.

The same parent corporation as Bud Light, Anheuser-Busch InBev, owns Grupo Modelo, a brewer in Mexico. Following InBev’s acquisition of Grupo Modelo, Constellation Brands, a corporation with headquarters in Rochester, New York, was granted a license by antitrust authorities to market Modelo in the United States beginning in 2013.

Constellation said on Wednesday that it continues to see a “runway for growth” in the United States and that it had almost quadrupled its marketing investment on Modelo over the last five years. However, Bud Light will attempt to offset that.

InBev said last month that it will treble its marketing expenditures in the United States this summer, focusing on sporting events and music festivals. Additionally, Bud Light continues to play a prominent role in supporting LGBTQ+ Pride activities.