Additional unfavorable developments for Bud Light
Additional unfavorable developments for Bud Light
Another brew from Anheuser-Busch InBev, Michelob Ultra, has taken the lead on US draft lines, overtaking Bud Light, ending its decades-long reign. This information comes from Draftlines Technologies, a company responsible for monitoring over a million tap lines.
For quite some time, Bud Light held the leading position in draft shares, with Michelob Ultra trailing behind as its growing sibling brand. However, things started shifting in the middle of last year, following a consumer boycott of Bud Light prompted by a sponsored Instagram post featuring transgender influencer Dylan Mulvaney. This boycott, in addition to some bars removing Bud Light from their taps, resulted in long-term sales damage.
Since then, Michelob Ultra has seen an increase in draft availability, surpassing Bud Light in November and continuing its growth in December, according to data from Draftlines Technologies.
Jennifer Hauke, founder of Draftlines, shared with CNN that Michelob Ultra had been on a trajectory to surpass Bud Light as the top brand on draft in total taps for several years. She attributed Michelob Ultra's rise to shifting consumer preferences.
Anheuser-Busch InBev did not immediately respond to CNN's request for comment.
This development marks another setback for Bud Light, which slumped to third place in sales at retail stores during the summer. Topping the list is Modelo Especial, produced by rival Constellation Brands, followed by Michelob Ultra.
In sales through November 3, Michelob Ultra remains A-B InBev's leading beer in terms of sales at retailers, registering a 4% growth. Bud Light, on the other hand, saw a 13% decline in sales, as per Circana data obtained by Brewbound.
‘Inevitable’ for multiple reasons
The change was "inevitable," said Bryan Roth, an analyst for Feel Goods Company, as Bud Light's sales at both bars and retailers continued to decline for several years.
Michelob Ultra didn't gain popularity solely because Bud Light lost favor. Instead, in recent years, A-B InBev invested more in marketing to attract health-conscious drinkers seeking a better-perceived low-carb beer.
Roth, an alcohol beverage newsletter editor, noted that for the past decade, Bud Light has been seen as merely a "light beer." Meanwhile, Michelob Ultra has managed to convey ideas of aspiration, activity, and personality that Bud Light does not. He added that Michelob Ultra has a wider appeal, while Bud Light has struggled to maintain loyal drinkers.
Michelob Ultra also gained recognition through high-profile sports sponsorships, including Team USA for the Olympics, several soccer tournaments, and leagues, including MLS, Copa America, and the revamped FIFA Club World Cup. Its lineup will expand next year with the launch of a non-alcoholic version.
Bud Light, conversely, focused its marketing on winning back conservative drinkers. It became the official beer of the UFC late last year and maintained its massive advertising presence during college and professional football games, in addition to its sponsorship of country music festivals.
“Bud Light has been centered around its tagline of ‘easy to enjoy,’ but in reality, Michelob Ultra has held that mantle for some time,” Roth observed, “which has helped the brand gain the prominence it currently enjoys.”
In more positive news for A-B InBev, the company's most recent earnings report showed that beer volumes in North America, its largest market, remained stable. This is an improvement from the 18% decline reported the previous year, mostly due to growth from Michelob Ultra and Busch Light.
Following the consumer boycott and bar removals of Bud Light, Michelob Ultra saw an increase in draft availability and surpassed Bud Light in draft shares in November, according to Draftlines Technologies. As a result, Michelob Ultra has been able to capitalize on shifting consumer preferences, attracting health-conscious drinkers with its marketing efforts.
Anheuser-Busch InBev's investment in marketing for Michelob Ultra to promote its low-carb beer appeal has helped set it apart from Bud Light, which has been perceived as merely a "light beer" for the past decade. Meanwhile, Michelob Ultra has successfully conveyed ideas of aspiration, activity, and personality, widening its appeal while Bud Light has struggled to maintain loyal drinkers.