Constellation Brands, which brews Modelo Especial in Mexico, was able to take over Bud Light as the number one selling beer in the United States for the month of May. During the four weeks ending on June 3rd, Modelo was able to account for 8.4% of US retail beer sales compared to Bud Light’s 7.3%.
This sales trend caused Bud Light to suffer a 24.4% decline in sales during this period while Modelo’s sales grew 12.2%. There is no indication that Bud Light will regain its position at the top anytime soon according to consulting firm Bump Williams.
Williams cited drunkers switching their preference to Mexican beers and spirits, such as tequila and mezcal, as a factor on Modelo’s growing popularity.
A great Cinco de Mayo advertising campaign and eye-catching packaging was a factor as well. Greg Gallagher, Vice President of Brand Marketing for Constellation, told CNN that the company wants to replicate the dominance it has with Hispanic drinkers with more demographics, stating that they are having “incredible success”.
While Anheuser-Busch (BUD), which makes Bud Light, may have lost the top spot for May, it can still boast that their American-made beer remains the top selling beer on a year-to-date basis.
However, other beers in their family, such as Michelob Ultra, Natural Light, and Busch Light all experienced a decline in sales in the same time period compared to previous weeks.
If the sales trend continues, it is predicted that Modelo Especial will continue to increase its sales growth as summer moves forward. The new low-carb version of the beer called Modelo Oro is off to a great start following its debut in May.
While this may be great news for Constellation Brands, it is not so positive for other beer corporations as consumers switch their allegiances to Mexican beer brands.
This is in line with the recent trend of “Boycott pride” that has seen some conservative groups call for people to avoid products that openly endorse the LGBTQ+ community.
Although the fight against Pride has targeted big corporations with an open endorsement of the community, Budweiser has not specifically marketed to the LGBTQ+ community.
However, this strategy may not have worked in their favor as consumers flock to beer brands that offer an alternative to the typical American-made brew.
The trend of “Boycott pride” is not expected to come to an end anytime soon as more businesses openly support the community. In response, some conservative groups call for boycotts to stop companies from openly declaring their support of the LGBTQ+ community.
However, this call for boycotts may not have as much impact as some may believe as businesses are looking to promote inclusion and diversity to appeal to a broader audience.
Despite the fall in sales of the Bud Light family, it is incorrect to assume that all consumers are moving away from American-made beer. According to the data, Bud Light remains the top-selling beer overall this year. However, there is no denying that this loss of the top spot may impact Bud Light’s perception as the go-to American beer for consumers.
The American-made beer, Bud Light, has been the top-selling beer for over two decades, but in recent years, consumers have been switching to Mexican beers and spirits, such as tequila and mezcal.
But with the introduction of these new competitors into the market, Bud Light’s reign at the top may very well be over. The challenge for companies like Constellation is to maintain their growth while appealing to a broader audience.
Modelo Especial’s victory over Bud Light doesn’t necessarily lessen Budweiser’s dominance in the beer market. It is just a sign that consumers are gravitating towards Mexican beers. Most likely, Bud Light will continue to be the top seller in the United States and will remain in the hearts of millions of American beer-lovers.
In conclusion, Modelo Especial’s strong marketing campaign, great packaging, and an alternative to the typical American-made beer has allowed the Mexican beer to take the top spot in sales for May in the United States.
Bud Light and its family of beers experienced sales decline in the same time period and it’s yet to be seen whether Bud Light can reclaim the top spot while Modelo Especial continues to grow in sales each week.
Regardless of your political leanings, it’s clear that consumers are taking more of an interest in Mexican beers and spirits over American-made beer.
While Bud Light remains the top selling beer overall, the introduction of new competitors such as Modelo Especial into the market may change this. It’s up to each individual consumer to decide what they want to drink, and we will continue to see the market evolve over time.
It is a fact that Modelo Especial’s move to the top spot of beer sales in the United States is a result of its strong marketing campaign and its appeal to consumers as an alternative to the typical American beer. It should not be looked at through a political lens nor should it be used to attack one’s political opponents.
As the beer market continues to evolve, brands will need to adapt their marketing campaigns to appeal to a broader audience.
This evolution is necessary for the survival of these companies as they compete against new entrants into the market. What is required is a level head and an understanding that this evolution is a natural occurrence.
The trend of ‘Boycott pride’ is not expected to have a significant impact on beer sales as companies continue to promote inclusion and diversity. Bud Light’s position as the top selling beer overall this year is proof of this.
Companies understand that they cannot afford to alienate potential customers by embracing radical ideologies. The focus should be on the quality of the beer produced and making sure it appeals to the consumer.
Regardless of your political beliefs, the fact remains that Modelo Especial’s sales have surpassed the sales of Bud Light in the month of May.
The evolution of the beer market and the entry of new competitors like Modelo Especial is a natural occurrence. What’s important is not to politicize beer sales but to understand that these changes happen and companies need to adapt to these changes.
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