More bad news for Bud Light, as Michelob Ultra takes the top spot at bar counters in the US

New York
CNN
—

It’s the end of an era for Bud Light: the shrouded brand is no longer the most popular beer on tap in bars.

Another Anheuser-Busch InBev beer, Michelob Ultra, has overtaken Bud Light in the US draft portion, ending decades of dominance. According to that data Draftlines Technologiesa company that controls over a million touch lines.

For many years, Bud Light was the biggest beer on draft ahead of its growing sister brand, Michelob Ultra. The gap began to narrow in the middle of last year, after a boycott of Bud Light was sponsored in a single Instagram post. Transgender activist Dylan Mulvaney. Beyond the customer boycott, some bars even removed their taps, hurting their long-term sales.

Since then, Michelob Ultra has gained draft availability, surpassing Bud Light in November and continuing to grow in December, Draftlines data revealed.

“Michelob Ultra has been on track to surpass Bud Light. No. 1 on draft for several years, in total,” Draftlines founder Jennifer Hauke ​​told CNN. “Michelob Ultra’s rise as leader in number of touch handles on draft reflects changing consumer preferences.”

AB InBev did not immediately respond for comment.

It’s another blow for Bud Light, and it sank to third place in grocery and convenience stores in the summer. Number 1 is Modelo Especial, made by rival Constellation Brands, and is followed by Michelob Ultra.

In year-to-date sales through Nov. 3, Michelob Ultra remains AB InBev’s top beer in terms of retail sales, up 4 percent, while Bud Light sales fell 13 percent, according to Circana. Data obtained by Brewbound.

The change was “inevitable,” said Bryan Roth, an analyst at Feel Goods Company, as sales of Bud Light at bars and retailers have steadily declined in recent years.

Michelob Ultra has not gone up because Bud Light has gone down. In contrast, AB InBev has spent more marketing money in recent years to attract health-conscious drinkers looking for a more appealing low-carb beer.

“Over the last decade, Bud Light has increasingly been seen as ‘just a light beer.’ Michelob Ultra, on the other hand, carries ideas of aspiration, activity and personality in a way that Bud Light simply does not,” Roth also edits. alcoholic beverages bulletinhe told CNN. “Michelob Ultra has the ability to appeal to anyone even if Bud Light has a harder time keeping loyal drinkers.”

Michelob Ultra also increased its popularity with exciting sports sponsorships, including the US Olympic team, and various soccer tournaments and leagues, among others. Major League SoccerAmerica’s Cup and The revamped FIFA Club World Cup. Its portfolio will expand next year with the release of a non-alcoholic version.

Bud Light, on the other hand, focused its marketing efforts on winning back conservative drinkers. It became a brand The official beer of the UFC late last year, and has maintained a strong advertising presence at college and pro football games, as well as sponsoring country music festivals.

“Bud Light has been anchored on the tagline ‘easy to enjoy,’ but Michelob Ultra has actually held that mantle for a while,” Roth said of Michelob Ultra’s marketing efforts and socially acceptable reputation, “helping to elevate the brand. Now the role it has.”

In brighter news for AB InBev, the company’s latest earnings report shows that beer volumes in North America, its largest market, were flat. That’s an improvement from the 18% decline it reported a year earlier, largely due to growth in Michelob Ultra and Busch Light.