Modelo Especial Overtakes Bud Light as America’s Best-Selling Beer
In recent news, Modelo Especial has emerged victorious over Bud Light as the best-selling beer in America, as reported by new data from grocery stores and beer retailers. This seismic shift in the beer market comes after Bud Light experienced a significant downfall in sales following the controversy surrounding Dylan Mulvaney.
Sales of Modelo have been soaring, surpassing Bud Light’s this year by a considerable margin. In May, June, and July, Modelo trounced Bud Light in off-premise beer sales, boasting a 9.1 share compared to Bud Light’s 7 share, according to NIQ data. This trend has led to Constellation Brands, the distributor of Modelo based in New York, reporting an impressive 11% increase in sales during its second-quarter earnings. Constellation’s success has been largely driven by its beer business, which includes the iconic Corona brand.
On the other hand, Bud Light has struggled tremendously since partnering with Mulvaney, resulting in a staggering 26.7% decrease in volumes. This decline has had far-reaching consequences for the brand, including losing its position as America’s number one beer after a reign of 22 years. The controversy surrounding Mulvaney erupted in April when Bud Light involved her in their March Madness campaign. As part of the promotion, Mulvaney received a personalized can of the light beer with her face on it, sparking a wave of outrage among drinkers.
The predictably expected victory of Modelo over Bud Light was expedited due to the worsening trends of the latter in April, as revealed by Benj Steinman, president of Beer Marketer’s Insights. He explains that while Modelo’s superiority was anticipated, the timeline accelerated due to Bud Light’s alarming decline.
Constellation Brands now aims to expand its dominance with Hispanic drinkers to reach a broader demographic. Interestingly, the company has also succeeded in attracting non-Hispanic customers, further propelling its growth. In contrast, Anheuser-Busch, Bud Light’s parent company, has endured substantial losses of $390 million in US sales since partnering with Mulvaney.
Bud Light’s popularity has been continuously dwindling since the affiliation with Mulvaney, resulting in a 10.5% drop in total US revenue during the April-to-June period, in comparison to the previous year. The personalized promotional can presented to Mulvaney to commemorate her transition from male to female fueled an even greater backlash from consumers. Drinkers accused Bud Light of forcefully imposing progressive beliefs on them, leading to widespread discontent.
The consequences of this controversy were significant for Anheuser-Busch, with two of its top executives taking a voluntary leave of absence. However, the company denies that they were terminated due to the Mulvaney fiasco.
As we witness the rise of Modelo Especial as America’s new favorite beer, Constellation Brands aims to solidify its position while diversifying its customer base. On the other hand, Bud Light faces a significant challenge in recovering its once-untouchable status after a devastating public relations disaster.
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