The Blubber

Bud Light, a brand synonymous with casual, rowdy fun, was a perfect fit for places like the Green Rock Tap and Grill in Hoboken, New Jersey. This bustling sports bar, known for its $1 wing nights, sold $250,000 worth of what was then America's best-selling beer in 2022.

However, the bar’s Bud Light sales have plummeted to just $37,000 this year, reflecting the brand’s broader struggles since April 2023. That’s when a transgender influencer promoted Bud Light online, triggering a conservative backlash that included Kid Rock, wearing a MAGA hat, shooting up cases of the beer, and Ted Cruz calling for an investigation.

“It’s definitely taken a hit,” said Brandon Bovino, chief operating officer of the company that owns Green Rock and several other bars in New Jersey. He noted that customers have switched to competitors like Miller Lite, as Anheuser-Busch InBev’s efforts to regain market share through promotions have fallen short.

This trend is evident on a national scale as well. Despite Anheuser-Busch InBev investing millions in marketing, including TV ads featuring Peyton Manning and a sponsorship deal with UFC, Bud Light continues to lose ground, according to interviews with distributors, bar owners, and industry experts, as well as exclusive data provided to Bloomberg News.

In July, Bud Light dropped to third place in the U.S. beer market, falling behind Modelo and Michelob Ultra, another InBev brand, based on NielsenIQ data analyzed by industry consultant Bump Williams. Bud Light’s market share fell to 6.4% in the second quarter at over 1,000 bars using Union’s point-of-sale software, down from nearly 12% before the backlash.

The company will report its second-quarter earnings on Thursday, compared to the same period last year when the Bud Light controversy began. Sales in North America, which account for about a quarter of its roughly $60 billion in total revenue, have declined for four consecutive quarters. Analysts project a 1.5% drop in regional revenue to $3.89 billion, according to the average estimate.

The company’s stock has decreased by around 6% this year, reducing its market value to about $120 billion—approximately 40% below its peak in 2019 before the Covid-19 pandemic.

AB InBev declined to provide any executives for interviews regarding this story.