Bud Light, once the undisputed king of draft beer, is losing its crown as consumer tastes evolve. Recent data indicates this iconic brand has been surpassed by Michelob Ultra, marking a significant shift after decades of dominance. According to Draftlines Technologies, which monitors over one million tap lines across the U.S., Michelob Ultra has not only closed the gap but now boasts the largest draft share. A change was observed particularly after last year's controversy surrounding Bud Light involving transgender influencer Dylan Mulvaney, which led to numerous boycotts and some bars opting to remove Bud Light from their taps altogether.
This momentous decline has not gone unnoticed within the Anheuser-Busch empire. Once held as the king of the bars, Bud Light's dethronement came as it slid to third place among beer sales at grocery and convenience stores. To put it simply, Modelo Especial, another brand under rival Constellation Brands, is now basking at the top spot, with Michelob Ultra hot on its heels— showing growth figures of 4% against Bud Light's disheartening slump of 13%.
Jennifer Hauke, founder of Draftlines, spoke to CNN about Michelob Ultra's ascent, stating, "Michelob Ultra has been on a path to surpass Bud Light as the no. 1 brand on draft for years. The rise reflects shifting consumer preferences." This sentiment aligns with Bryan Roth, an analyst with Feel Goods Company, who described Bud Light's downward trend as "inevitable". It’s noteworthy to realize this isn't just about Bud Light's downfall but also Michelob Ultra's strategic push to capture the hearts of health-conscious drinkers.
For years, Bud Light has been perceived as 'just another light beer,' lacking the flair and modern appeal of its brother brand. Meanwhile, Michelob Ultra has seized opportunities through stylish marketing campaigns and significant sports sponsorships, from the Olympics to Major League Soccer events, building up its appeal as the go-to low-carb beer for those leading active lifestyles.
Simultaneously, A-B's strategies have shifted too. While Bud Light is casting its net to win back conservative drinkers through partnerships with the UFC and engagement at major sporting events including football and country music festivals, Michelob Ultra’s reputation continues to shine brighter.
The latest earnings reports from Anheuser-Busch revealed interesting insights. They showed North American beer volumes remained stable compared to sharp declines previously seen. Much of this stability seems to be tied to Michelob Ultra and Busch Light maintaining their support among consumers, even as Bud Light continues to navigate tumultuous waters.
Bud Light's struggles are layered and complex, with its branding tied to 'easy to enjoy' messaging but appearing detached from the changing trends where Michelob Ultra has already taken charge—a stark reflection of today’s consumer needs. The challenge now lies not only with Franck van Etten, the A-B marketing executive, but also the larger corporation as they grapple with this changing tide.
What once felt like a guaranteed win for Bud Light has now turned the spotlight on Michelob Ultra, raising significant questions about the future of the beverage industry, brand loyalty, and how fundamental shifts can reshape the hierarchy of products consumed by Americans.
