Bud Light still reeling from ‘unforced error’ as Modelo Especial and Michelob Ultra both surpassed it

Bud Light continues to suffer more than a year since an "unforced error" caused widespread boycotts as Modelo Especial and Michelob Ultra have both surpassed it on the list of top beers in the U.S.

"Bud Light executives are responsible for perhaps the greatest unforced error in business history," Consumers' Research executive director Will Hild told Fox News Digital. 

The devastating boycott of Bud Light started in the spring of 2023 when trans activist Dylan Mulvaney proudly displayed a custom can sent by Anheuser-Busch that celebrated "365 Days of Girlhood," a social media series that detailed a year of identifying as a transgender woman.

Subsequent posts featured Mulvaney drinking Bud Light to celebrate March Madness, even enjoying the beer in a bathtub. Conservatives were outraged, Kid Rock famously used a case of the beer for target practice, and many would-be consumers were embarrassed to even hold a Bud Light in public. 

BUD LIGHT FALLS TO NO. 3 BEER BRAND MORE THAN YEAR AFTER DYLAN MULVANEY CONTROVERSY

Bud Light continues to suffer more than a year since an "unforced error" caused widespread boycotts. (Igor Golovniov/SOPA Images/LightRocket)

Kid Rock has since done an about-face, Comedian Shane Gillis announced a partnership with Bud Light, UFC announced a multi-year deal that turned CEO Dana White into a quasi-pitchman, and former President Trump has said the "great American brand" deserves a second chance after paying a big price. Bud Light even unveiled temporary camouflage bottles. 

But prior to the backlash, Bud Light, owned by Anheuser-Busch InBev, was the top-selling beer in America. That is no longer the case. 

In year-to-date numbers that ended July 6, Modelo accounted for 9.3% of beer dollar sales in U.S. stores. Michelob Ultra accounted for 7.1%, and Bud Light fell to the No. 3 spot with 7.0%, according to an analysis of NielsenIQ data shared by Bump Williams consulting firm. 

"Bud Light is still the No. 1 selling beer in the United States on a volume basis (cases) and has started to recover from the Dylan Mulvaney situation that occurred on April 1st of 2023," a statement from the consulting firm to FOX Business reads. "While $ sales aren’t quite back into the ‘positive’ yet, the declines for the brand have improved dramatically and Retailer support continues to improve week after week."

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Bud Light sales plummeted after a promotional partnership with transgender activist Dylan Mulvaney caused widespread backlash. (Instagram)

Beer Business Daily publisher Harry Schuhmacher, who has worked in the beer industry for over three decades in multiple positions and published the trade publication for over 20 years, has never seen anything like this. 

"The damage to Bud Light from the boycott has proved to have permanently reset its market share by a full point. If there’s any consolation for Anheuser-Busch, it’s been that they have returned Michelob Ultra to growth, along with Busch Light," Schuhmacher told Fox News Digital. 

Hild, whose Consumers’ Research aims to "educate and protect consumers from harmful products," feels the "ongoing collapse" of Bud Light is indicative of two critical issues.

"First, the winds are dramatically shifting. Consumers are tired of constantly being bombarded with far-left political extremism when they’re simply trying to go about their day-to-day business. They’re speaking with their wallets, and rejecting companies who attack their values," Hild told Fox News Digital. 

BEER INDUSTRY EXPERT: BUD LIGHT'S DECLINE LOOKS ‘QUASI-PERMANENT,’ ‘THOSE CONSUMERS ARE JUST LOST FOREVER’

Kid Rock's shooting of Bud Light cans last year went viral. (G Fiume / Getty Images and Mike Ehrmann/Getty Images)

Entrepreneur and financial guru Ted Jenkin isn’t surprised Bud Light is still suffering. 

"This just goes to show the power of the people and that they don’t want politics to be involved with them enjoying their favorite beer. So many people thought Bud Light would rebound, but clearly the market has spoken," Jenkins told Fox News Digital. 

Jenkins also believes that ready-to-drink canned cocktails such as High Noon and Surfside, which exploded in popularity as consumers shied away from beer, will add to Bud Light’s issues. 

"Beer will be challenged in the future, but especially Bud Light still feeling the effects of their malfunctioning marketing decisions," Jenkins said. 

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Seth Weathers, the founder and CEO of Conservative Dad's Ultra Right Beer, launched his company last year in response to backlash against Bud Light. "America’s been drinking beer from a company that doesn’t even know which restroom to use," Weathers said in a viral social media ad that launched his product. 

"People are becoming wise to liberal corporations who hate our values. They realize Bud Light never apologized, never fired the marketing executive responsible, and never will," Weathers told Fox News Digital.  

"Throwing a camo-designed can at conservatives and hoping it will go away is not going to cut it," he continued. "In 2024, people want to support brands that align with their values." 

An Anheuser-Busch spokesperson defended the brand, noting that it also makes Michelob Ultra and other thriving products. 

"In the last four weeks, Michelob ULTRA and Busch Light are two of the top three share gaining brands in the industry, demonstrating that our partnerships with the NBA, PGA, NASCAR, Team USA at the Olympic Games, and others, continue to resonate and connect with millions of sports fans and beer drinkers and drive growth," an Anheuser-Busch spokesperson said in a statement to FOX Business. "We are focused on what we do best - brewing great beer for everyone and earning our place in the moments that matter."

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Fox News Digital's Pilar Arias contributed to this report.