While Modelo Especial has been able to overtake Bud Light as the most popular beer in the U.S., it may not be the biggest beneficiary of the brand's downfall.
It's doubtful people who love American lagers like Bud Light would jump ship to a Mexican brand like Modelo, a more natural pivot would be to another domestic beer.
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It looks like that beneficiary is Molson Coors (TAP) -) and its Coors Light and Miller Lite brands.
Molson saw an 11.8% year over year increase in net sales and a 5% increase in financial volumes in the second quarter. CEO Gavin Hattersley said: "we are seeing share and market improvement everywhere, and more consumers are reaching for our beers than our competitors' beers."
The fallout from Bud Light's (BUD) -) decision to bring on transgender social media influencer Dylan Mulvaney as a spokesperson -- and the subsequent boycott that resulted -- means that Coors Light and Miller Lite are now 50% bigger than Bud Light by total industry dollars, according to Hattersley.
"Last year, Bud Light was bigger than both. Retailers are making space for our brands as demand increases," Hattersley said.
Despite the gains brought about by Bud Light's downfall, the overall beer market is still shrinking in the U.S. in 2023, with softness on the West Coast, particularly California, where the company says "really difficult weather conditions in the first part of the year" challenged the overall industry.
"However, core beer drinkers are incredibly loyal and have maintained their share of dollars and volume in beer," Hattersley said.
But Bud Light has tested that loyalty, and it is anyone's guess as to whether it will ever be able to recover its formerly loyal fanbase.
