Bud Light Faces Another Week of Declining Sales Amid Ongoing Backlash

Bud Light, the popular beer brand owned by Anheuser-Busch, experienced a further decline in sales during the last week of May, adding to the ongoing challenges it has been facing due to consumer backlash. According to NielsenIQ data provided by Bump Williams Consulting, Bud Light saw a significant 23.9% decrease in sales on a dollar basis compared to the same period last year. Over the past four weeks, sales have fallen by 24.5%, as reported by the data.

This continuous decline in sales has raised concerns among industry experts and prompted FOX Business to reach out to Anheuser-Busch for comment on the matter.

The controversy surrounding Bud Light began in early April when the company released custom cans featuring transgender influencer Dylan Mulvaney. This move generated mixed reactions, with some consumers vowing to boycott the brand. Despite the backlash, the week ending May 27 showed a slight improvement compared to the previous week, where Bud Light experienced a decline of 25.7% in sales from the previous year, according to the NielsenIQ and Bump Williams Consulting data.

Bump Williams, CEO of Bump Williams Consulting, attributed the week-to-week softening of sales to a “combination of things.” He stated that Anheuser-Busch distributors worked hard to communicate to their local communities that they were not responsible for the controversial cans, which helped maintain strong relationships with retailers and consumers.

Williams also pointed out that retailers continued to promote Anheuser-Busch’s portfolio during this period, including Bud Light. Additionally, the Memorial Day discount offered by Bud Light helped drive consumer purchases and potentially attracted customers back to the brand. The discount allowed eligible customers in certain states to receive up to $15 back on specific Bud Light and Budweiser products.

However, Williams emphasized that Bud Light’s sales problem is not yet resolved and that the slight improvement in sales is merely a step in the right direction. He warned that if the brand continues to post 20% sales declines leading up to July 4, retailers may be forced to reallocate shelf space to other brands.

Contrasting Bud Light’s performance, the beers Miller Lite, Coors Light, and Yuengling Traditional Lager experienced growth in sales during the week ending May 27. Miller Lite and Coors Light, both owned by Molson Coors, saw sales climb by 21.3% and 23.5% respectively in the four weeks leading up to that date. Yuengling Traditional Lager recorded a significant increase of 31.3% in sales during the same period, according to the NielsenIQ data.

Although Bud Light maintains its position as the best-selling beer in the U.S. with a market share of 35.4% in terms of sales dollars for the 21 weeks ending May 27, there is a possibility that it could be dethroned. Williams noted that Modelo Especial has surpassed Bud Light as the top-selling brand in the country for the past four individual weeks.

Furthermore, analysts predict that the decline in Bud Light’s market share may benefit other alcoholic beverages, such as Boston Beer Company’s Truly and other hard seltzers. As Bud Light loses customers, the substitutability between Bud Light and seltzers is expected to increase, particularly during the summer months.

The continuous decline in sales has had a notable impact on Anheuser-Busch InBev’s stock price, which has dropped approximately 15% compared to its value a month ago.

As Bud Light grapples with the consequences of its recent controversies, the company will need to make strategic decisions and address consumer concerns to regain its footing in the competitive beer market.