New York CNN
Bud Light's decline benefits one of its largest rivals
Molson Coors reported its best quarterly revenue since 2005, when it merged with Anheuser Busch. This is because drinkers are continuing to move away from Anheuser Busch beer.
Molson Coors' (TAP) release stated that the combined US sales for its two flagship beers were 50% higher than Bud Light in the second quarter. Modelo Especial sales, which had surpassed Bud Light in May and Juni, were also 30% higher. This is a dramatic change from the same period a year earlier, when Bud Light was higher than Coors Light combined with Miller Lite.
The net income for the second period increased to $342 millions, compared with $47 million a year ago. Sales rose 11.8%, to $3.3 billion. However, this was slightly below analyst expectations. This resulted in the shares falling more than 2% during premarket trading.
Molson Coors has also raised its full-year guidance in order to "reflect the continued strengths we are seeing in core brands in the US."
Beer industry changes
Bud Light's decision of sending a custom-made can to a transgender blogger sparked a backlash against the company and alienated its core customers. A-B's failure to respond to the hate was also criticized by some members of LGBTQ+ communities and their allies.
Since April, Bud Light sales have consistently fallen by over 20% each week (compared with the previous week). Modelo Especial, a Spanish beer, displaced Bud Light as the top-selling beer in the United States, for the first-time, in May. This ended a nearly two-decade-long run by Bud Light. In June, the trend continued.
Constellation Brands, Modelo's parent corporation (STZ), recently announced strong earnings. Corona and its beer division, which includes Modelo, saw a 11% rise in sales during the first quarter.
A-B announced last week layoffs in its US corporate workforce, which amounted to less than 2% of the total number of employees. The beer giant will announce its earnings on Thursday, which will cover the decline in Bud Light sales.