Is Bud Light Losing Its Reign as the Top Beer Brand in Canada?

Bud Light Sales Take a Plunge in the Face of Rising Competition

Bud Light is facing increasing competition that could lead to losing its No.1 status in the U.S beer market. For the week ended May 27, Bud Light’s sales collapsed by 23.9%. Though, this is a slight improvement from the 25.7% decline a week earlier, it is the most significant drop by any of its high profile beer brands owned by Anheuser-Busch. The sales for other brands of Anheuser-Busch, including Budweiser, Michelob Ultra, Busch Light and Natural Light, showed narrower drops than the week before amid a more massive backlash against Bud Light and its parent company.

Challenges Faced by Bud Light

The beer brand has been struggling in the market, and as a result, its share is down to 7.2%. Year-to-date data shows that it still is the country’s number one beer at 9.1% market share when compared to the competition it faces, mostly from Modelo’s 8.0 market share.

Bud Light may retain its position in the market if it can reverse the decline and retain shelf space at retailers. Anson Frericks, a former executive of Anheuser-Busch, says that retailers usually “reset” shelf space allocation in the spring and fall based on sales data. But if retailers take this data from April, May, June, and July based on the current climate, then Bud Light will lose its space allocation on the shelves and will be replaced by Miller Lite, Coors Light, Yuengling, and other brands that have taken market share from Bud Light.

Reason For Decline

The backlash against Bud Light mainly happened after it announced its partnership with transgender influencer Dylan Mulvaney. Bud Light then used her image and branded a commemorative 16 oz can to mark her one-year anniversary as a woman.

Many believe that the $15 rebate Anheuser-Busch offered on 18 packs and larger amounts of Bud Light significantly influenced the sales over the Memorial Day weekend. This offered a $20 case of Bud Light for as little as $5 in some states, according to reports. Price probably has a lot to do with the improved sales trends.

Expert’s Opinion

In an interview with The Post, Bump Williams, head of the consulting firm, said: “Perhaps the bottom has been hit, and we are seeing a turnaround in performance.” He also suggested that the company should offer more price discounts this summer on its portfolio to encourage consumers to return and stay loyal.

Final Verdict

Anheuser-Busch needs to act fast to recover its brand image and market share if it is to stay afloat in the highly competitive beer market in the U.S. Many analysts believe that a brand turnaround may take a long time, and success relies upon taking the proper steps and making the right decisions. It is the company’s responsibility to make a turn around of its own accord and not just rely on discounting its products.