Recent news that Bud Light is no longer America’s best-selling beer is just a continuation of its decade-long decline.
Modelo Especial is now the number one beer brand in America, though that is only based on dollar sales. Bud Light continues to outsell Modelo Especial based on volume, but because Modelo Especial commands a higher price, it outsells Bud Light based on dollars. But the gap between Bud Light and Modelo Especial volume is narrowing.
“The thing nobody has been talking about is Budweiser and the forgotten nature of that brand,” Bryan Roth, an analyst for Feel Goods Company and editor of its newsletter, Sightlines+ said. “How much the brand matters to consumers and how much it matters to ABInBev has certainly declined a lot.” Roth notes that sales of both Budweiser and Bud Light have been shrinking for a long time.
Budweiser gave up its spot atop the leaderboard as American’s best selling beer in 2001 to its sibling brand Bud Light, which held the title until ceding it to Modelo Especial. Almost 10 years ago, Time reported that almost half of millennials had never even tasted Budweiser and Roth notes that the entire premium light beer category has been in decline for many years.
“Even if you look at where ABInBev is spending money on Super Bowl commercials, they are spending less on Budweiser and spending more on Cutwater Spirits which makes canned cocktails, NÜTRL Vodka and Michelob Ultra,” Roth said. It is an effort by ABInBev to cater to the tastes of younger drinkers. “A person turning 21 now can choose from hard seltzer that tastes like any fruit they want. Or if they like tea, they can choose from a hard tea. Or they can choose from a canned cocktail that tastes like a margarita or a mojito. It’s never been easier to find exactly the flavor experience you want.”
But both Bud Light and Budweiser remain top-10 brands. Roth said, “they will always be there.”
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