Dec 13, 2024, 12:00 AM
Dec 13, 2024, 12:00 AM

Michelob Ultra dethrones Bud Light as the top beer in bars

Highlights
  • Michelob Ultra surpassed Bud Light in U.S. draft lines as of November 1, 2023.
  • Consumer shifts towards healthier choices and Bud Light's declining sales have fueled this change.
  • Both brands are part of Anheuser-Busch InBev, which still emphasizes Bud Light's strong market presence.
Story

In November 2023, Michelob Ultra accomplished a significant milestone by becoming the most popular beer on draft in the United States, surpassing Bud Light, which had maintained a dominant position for several decades. The shift in consumer preferences played a critical role in Michelob Ultra's rise, as more people began to opt for healthier, low-carb options over traditional light beers. According to data from Draftlines Technologies, which analyzes over a million tap lines, Michelob Ultra officially took the top spot on November 1, 2023, and it has sustained this leading position into December 2023. Anheuser-Busch InBev, the parent company of both brands, supports this shift with a commitment to market Michelob Ultra as a health-conscious brand, which resonates with today’s consumers searching for premium light beers. The decline in Bud Light's popularity can be traced back to multiple factors, including a public boycott triggered by a controversial marketing partnership with transgender influencer Dylan Mulvaney that began in April 2023. As Bud Light sales plummeted, Michelob Ultra steadily increased in availability on draft lines across bars and restaurants. This transition represents broader trends in the beer industry, where brands that align with consumer health and wellness are experiencing growth, while traditional brands struggle under the weight of changing consumer values. Jennifer Hauke, the founder of Draftline Technologies, noted that Michelob Ultra’s trajectory towards becoming the leading draft beer brand is indicative of a long-standing transformation in consumer behavior over the years. In comparison, Bud Light’s sales and draft line presence remain significant, with reports confirming its continued status as the second-largest draft beer in the U.S., boasting more than 30% greater share than its closest competitor. Despite losing the top tap spot, Bud Light holds a strong position due to established brand loyalty. Consumers have historically favored draft beers based on familiarity and loyalty, which has helped Bud Light maintain its relevance even amidst the challenges it faces. An Anheuser-Busch spokesperson emphasized the brand's remaining robust presence in the market, affirming that both Michelob Ultra and Bud Light together dominate the draft beer category in the U.S. As Michelob Ultra’s popularity rises, it reflects Anheuser-Busch’s ongoing strategies to promote awareness around healthier drinking choices. In line with these evolving dynamics, the company has put significant marketing efforts into Michelob Ultra, which has become a key driver of the brand's growth. The transformation also underlines the importance of evolving consumer tastes, as individuals increasingly seek beverages that resonate with their lifestyles. Furthermore, industry analysts predict that with the continued momentum behind Michelob Ultra, it might see further expansion, including the anticipated release of a non-alcoholic version set to launch next year. As of the current market dynamics, Bud Light is also adapting its marketing strategies, attempting to recapture its traditional consumer base by focusing on events and sponsorships that align with its brand narrative.

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