STZ - Mulvaney partnership costs Bud Light its top spot in U.S. beer market
2023-06-14 11:40:22 ET
Bud Light is no longer the top selling beer in the United States. It’s a medal that now sits with Constellation Brands Inc’s ( NYSE: STZ ) Modelo Especial.
What resulted in a decline in Bud Light sales?
In the four weeks to June 3 rd , Bud Light saw its sales tank a whopping 24.6%.
Much of it was related to Anheuser-Busch InBev ( EBR: ABI ) partnering with Dylan Mul v aney – a transgender influencer on a marketing campaign that invoked conservatives into calling for a boycott.
Budweiser sales also dropped 9.2% in the aforementioned period. On the flip side, Modelo Special saw a 10.2% increase in sales, as per Bump William (a consulting company).
AB InBev stock is down nearly 20% versus its year-to-date high at writing.
Overall sales are also slipping at AB InBev
Modelo Especial by Constellation Brands now makes up 8.4% of the total beer sales in the U.S. through retail stores.
Bud Light stood at the second spot in the four-week period with a market share of 7.3%. According to Jon Reynolds of the University of Vermont:
Bud Light’s stumble with Dylan Mulvaney will certainty hurt their chances to take market share, but Miller Lite, Coors Light, and Modelo will reap most of those rewards.
On Wednesday, data from NielsenIQ also confirmed a 12% decline in overall sales at AB InBev in the four weeks to May 20 th . Still, Wall Street has a consensus “overweight” rating on shares of the Belgian multinational drink and brewing company.
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