Bud Light Dethroned: Modelo Takes #1 Spot as Sales Tank & Distributors Despair

Despite the hope that Memorial Day would see an increase in sales, Bud Light is still in trouble. The infamous boycott against the brand has caused their sales to drop by nearly 30 percent. Even with all the sales tactics they have used so far, the brand is still facing the possibility of losing its coveted title of “number one beer in America” to Modelo Especial.

For the week ending May 27th, sales value and volume of Bud Light plummeted by 23.9 percent and 27.8 percent, respectively. Even though the drop is not as steep as the previous week, it is still significant and continues to fall. Thus, it seems that Bud Light is in deep trouble.

A survey conducted by Jefferies Group, an investment firm, revealed that 65 percent of beer distributors expect the boycott to continue for another six months, and 32 percent speculate it may be permanent. Meanwhile, Goldman Sachs, which surveyed 57 distributors, found that most respondents were doubtful that Bud Light could recover its “brand equity and market share.”

Moreover, almost two-thirds of beer distributors said that Anheuser-Busch sales volumes were down on Memorial Day, and 62 percent stated that the inventory was significantly higher in a survey. Distributors are losing hope in the brand, and it is not an encouraging sign for Bud Light, especially if it is a long-term issue.

One of the worst pieces of news for Bud Light in all this is that they are no longer the “number one beer in America.” Modelo Especial has overtaken Bud Light as the top beer brand. Bill Newlands, the CEO of Constellation, confirmed that Modelo Especial’s store sales topped $333 million in the four weeks ending May 28, a 15.6 percent increase compared to last year. Meanwhile, Bud Light’s sales fell by 22.8 percent to $297 million.

Lastly, Bud Light’s misfortune continued when reports emerged that they were sponsoring an “all ages” drag show after Flagstaff Pride in the Pines parade; the ad stipulated that under 16 requires a guardian. However, Anheuser-Busch claimed that they were not sponsoring the event, and Flagstaff Pride later acknowledged that they had put out an “incorrect promotional poster.” What a mess.

Bud Light is going from bad to worse in the beer industry, and it seems that not even Memorial Day or any other sales tactic can save it. With the rise of competitors like Modelo Especial, Bud Light is under tremendous pressure to make a comeback, but with distributors losing faith, its future seems bleak.

Written by Staff Reports

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