Distributors for Bud Light now believe that the market for the beer brand will not rebound, according to recent press reports. The distribution companies see the sharp fall in Bud Light sales as long-term following the April announcement of a partnership with transgender activist Dylan Mulvaney.
According to a recent article by the New York Post, a number of distributors signaled a negative outlook. One company executive stated that consumers had left Bud Light and “that’s how it’s going to be. I don’t envision a big percentage of them coming back.”
A beer industry analyst told the paper that there is an “increasing feeling” that the decline in the beer brand’s sales “could last for a while and the distributors are worried about losing those drinkers to other similar brands.”
The news came as Bud Light’s parent company Anheuser-Busch would cut about 350 positions.
Sales of Bud Light have decreased almost 27% for figures ending July 22, which was worse than the decline the previous week.
The decline in Anheuser-Busch sales also comes as its competitors have seen a sharp increase in consumption.
This week, Molson Coors announced an almost 12% increase in net sales. The company’s CEO Gavin Hattersley said that it was seeing “share and market improvement everywhere, and more consumers are reaching for our beers than our competitors’ beers.”
The CEO said that two of Bud Light’s main competitors, Coors Light and Miller Lite are “not 50% bigger than Bid Light by total industry dollars.” He said that Bud Light was larger than both beer brands in 2022 but that now retailers are “making space for our brands as demand increases.”
In addition, since the announcement of the Mulvaney partnership, Bud Light lost its title as the most-sold beer in the United States to Modelo Especial.
Bud Light had held the position as the most-sold beer for about two decades.
‘You need to stand for your values’: Heineken CEO spanks Bud Light over Dylan Mulvaney fallout https://t.co/BmzeGYhnFj via @americanwire_
— Bo Snerdley (@BoSnerdley) August 1, 2023
During the current consumer backlash, Bud Light has attempted to bring back customers, including through a number of rebates and promotions. So far, none have succeeded with any visible effect.
