Modelo Especial Bud Light

Modelo Especial Takes Lead in U.S. Beer Sales, Bud Light Slips

In a significant shift in the American beer market, Modelo Especial, the Mexican lager, has emerged triumphant, dethroning Bud Light from its long-standing reign as the nation’s most popular beer. This revelation comes as recently released data from Nielsen (NIQ) unveils a transformative change in the landscape of U.S. beer sales, particularly in off-premise locations such as beer and grocery stores.


As of August 12th, Modelo Especial commands an 8.34% market share, edging ahead of Bud Light at 8.28%. This marks the first time that Modelo has seized the coveted top spot in off-premise sales, reflecting a remarkable rise for the Mexican brew. The ascendancy of Modelo has been building gradually, with the lager surpassing Bud Light in monthly sales throughout the months of May, June, and July. Impressively, Modelo sustained a 9.1% market share during the last four weeks, while Bud Light’s presence diminished to 7.0% in off-premise beer sales.


Bud Light, however, finds itself grappling with a 26.7% recent sales decline, though this pales in comparison to the 30% plunge that followed the controversy surrounding the Dylan Mulvaney incident earlier this year. Analysts remain cautious about interpreting this brand recovery as a definitive trend, acknowledging that the situation could be a nascent phenomenon.


An encouraging harbinger for Modelo Especial is its affiliation with Constellation Brands (STZ), a partnership that has propelled the Mexican beer into the limelight. Constellation’s second-quarter financial report generated ripples with an 11% sales upswing, primarily attributed to their flourishing beer enterprise, encompassing both Modelo and Corona. Greg Gallagher, Constellation’s Vice President of Brand Marketing, underscored Modelo’s phenomenal trajectory, characterizing it as an “incredible run of success.” Gallagher elucidated Constellation’s ambitions to extend Modelo’s dominance across diverse demographics, including non-Hispanic clientele, a pivot that aligns with the beer’s recent surge in popularity.


In parallel, other formidable contenders in the beer landscape, notably Molson Coors (TAP), reported their most formidable revenue quarter since their 2005 merger. Miller Lite and Coors Light have outshone Bud Light, boasting a 50% and 30% higher sales volume than Modelo Especial, respectively, in the last quarter.


The repercussions of the rise of  Modelo Especial reverberate beyond its direct competitors. Anheuser-Busch (BUD) experienced a 10% plummet in U.S. revenue during the second quarter, largely a consequence of the diminishing sales of Bud Light. Sales to retailers in the United States contracted by 14%, trailing the broader beer industry’s performance, chiefly owing to the contraction in Bud Light’s volume. Earnings data unveiled a staggering $395 million decline in North American revenues compared to the same period last year.


The trajectory of Bud Light’s decline is inextricably intertwined with the beer giant’s controversial response to transgender influencer Dylan Mulvaney. Rather than quelling controversy, Bud Light’s decision to send a beer can to Mulvaney triggered a transphobic backlash, alienating segments of both its core customer base and the LGBTQ community. The absence of a genuine apology further exacerbated the damage to Bud Light’s reputation among an increasingly diverse consumer base.


As Modelo Especial ascends to the throne of the U.S. beer market, questions linger about the longevity of its triumph. The surge in sales raises the question: is this surge merely a seasonal fluke, or a harbinger of its permanent dominance? Only time will unveil the beer industry’s new monarch and its staying power in the hearts and carts of American consumers.


Source: Yahoo Finance

Related posts