It's the end of an era for Bud Light: The beleaguered brand is no longer the most popular beer on tap at bars.
Another Anheuser-Busch InBev beer, Michelob Ultra, has surpassed Bud Light in its share of U.S. draft lines, marking an end to several decades of dominance. That's according to data from Draftlines Technologies, a company that monitors more than 1 million tap lines.
For many years, Bud Light was the biggest beer in draft share ahead of its growing sister brand Michelob Ultra. The gap started closing in the middle of last year, following a Bud Light boycott sparked by a one-off sponsored Instagram post featuring transgender influencer Dylan Mulvaney.
Beyond the customer boycott, some bars also removed its tap — causing long-term damage to sales. Since then Michelob Ultra has gained in draft availability, surpassing Bud Light in November and continuing to grow in December, Draftlines data revealed.
"Michelob Ultra has been on a path to surpass Bud Light as the No. 1 brand on draft in total taps for a number of years," Jennifer Hauke, founder of Draftlines, said. "The rise of Michelob Ultra as the leader by number of tap handles on draft reflects shifting consumer preferences."
"We're proud to have the top two beers on draft in the U.S. in Michelob Ultra and Bud Light, and by our data, Bud Light is more than 30% bigger than the next closest draft competitor," an Anheuser-Busch InBev spokesperson said in a statement to CNN.
It's still another blow to Bud Light, which sunk to third place in sales at grocery and convenience stores during the summer. No. 1 is Modelo Especial, made by rival Constellation Brands, followed by Michelob Ultra.
In year-to-date sales through November 3, Michelob Ultra continues to be Anheuser-Busch InBev's biggest beer in terms of sales at retailers, growing 4%, while Bud Light sales plunged 13%, according to Circana data obtained by Brewbound.
'Inevitable' for multiple reasons
The change was "inevitable," said Bryan Roth, an analyst for Feel Goods Company, as Bud Light's sales at both bars and retailers steadily declined for the past several years.
Michelob Ultra hasn't risen simply because Bud Light has fallen. Rather, in recent years Anheuser-Busch InBev has pumped more marketing money to attract health-conscious drinkers seeking a more appealing low-carb beer.
"For the past decade, Bud Light has increasingly been seen as 'just a light beer.' Michelob Ultra, meanwhile, carries ideas of aspiration, activity, and personality in ways Bud Light simply doesn't," Roth, who also edits an alcohol beverage newsletter, said. "Michelob Ultra has an ability to appeal to anyone while Bud Light has found it harder to maintain loyal drinkers."
Michelob Ultra also raised its profile with splashy sports sponsorships, including Team USA for the Olympics, plus several soccer tournaments and leagues, including Major League Soccer, Copa America and the revamped FIFA Club World Cup. Its portfolio will expand next year with the release of a non-alcoholic version.
Bud Light, meanwhile, pivoted its marketing efforts to win back conservative drinkers. The brand became the official beer of the UFC late last year, and it has maintained its large advertising presence during college and professional football games as well as its sponsorship of country music festivals.
"Bud Light has been anchored on its tagline of 'easy to enjoy,' but in reality, Michelob Ultra has held that mantle for some time," Roth said of Michelob Ultra's marketing efforts and socially acceptable reputation, "helping the brand rise to the prominence it has now."
In perhaps brighter news for Anheuser-Busch InBev, the company's most recent earnings report shows that beer volumes in North America, its largest market, were flat. That's an improvement from an 18% decline it reported a year earlier, largely because of growth from Michelob Ultra and Busch Light.
