2023-04-18 11:48:12 ET
Customer preference shifts stemming from AB InBev’s ( BUD ) recent ad controversy could be a boost to Molson Coors ( NYSE: TAP ), according to Evercore.
Equity analysts Leonardo Malhado, Greg Porter, and Robert Ottenstein told clients that Anheuser Busch could be seen “losing material share” to Molson Coors ( TAP ) amid criticism over its recent advertising efforts. Conversations with experts and channel checks revealed an uptick in the Canadian-American conglomerate’s light beer sales in tandem with a dip in Bud Light sales.
“Our experts noted that Coors Light would be the most likely beneficiary, due partially to
its price parity with Bud Light in the mainstream segment. Overall, we found that Bud Light slowed sequentially in the latest week, while Coors Light and Miller Lite accelerated,” the team wrote. “Potential market share changes among these brands will remain topical over the coming months as investors try to gauge the depth and length of the fallout from the early April boycott.”
Nielsen data for the week ended April 8 backed up the suspicion, with Miller Lite sales jumping 11.1% over a two week period measured. That said, some potential brand-parent confusion buoyed Anheuser Busch despite flagging Bud Light sales. Early April data showed a 4.3% dip in Bud Light sales over a two-week period ended on April 8, but a 9.7% rise in Michelob Ultra sales. Budweiser, colloquially known as Bud Heavy, sales fell 0.7% for the observed timeframe.
Read more on AB InBev’s response to the controversy .
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Molson Coors to benefit from Bud Light controversy - Evercore