Bud Light made one desperation move that confirmed that the brand is doomed

Oct 27, 2023

Bud Light is trying to save its brand from utter ruin.

They launched one Hail Mary to keep their unpopular beer on store shelves.

And Bud Light made one desperate move that confirmed that the brand is doomed.

Bud Light is being decimated by the boycott that broke out against the brand in April over its partnership with transgender influencer Dylan Mulvaney.

The Light beer has become toxic to consumers as sales continue to plummet.

Bud Light’s unpopularity is causing retailers to reexamine how much shelf space they assign to the brand.

The embattled brand’s competitors that are seeing sales surge are poised to get prime positions in stores and more space on their shelves for their beers.

Losing shelf space would make any hopes of Bud Light recovering its lost sales virtually impossible, with consumers having more opportunities to grab competitors’ beer.

Now Anheuser-Busch, Bud Light’s parent company, is scrambling to try and save the shelf space for its brand before retailers reallocate them.

According to Beer Marketer’s Insights, the embattled brewing conglomerate is offering to pay retailers up to $150 million in incentives to keep shelf spaces for its beers.

Basically, Anheuser-Busch is trying to bribe retailers by giving them five extra days to pay their billing invoices and reimbursing distributors for some fuel and freight surcharges.

“I imagine for those that are having some cash flow concerns, this would help somewhat,” a distributor told the New York Post.

Anheuser-Busch is also extending a financial relief package for distributors of their beers through next spring as the company’s beers pile unsold at retailers.

Anheuser-Busch’s chief commercial officer Kyle Norrington wrote a memo to distributors announcing the creation of a “market share recovery incentive” effort to run through the end of next year.

The memo didn’t explain what the incentive program is, but it comes as retailers began to reallocate space on their shelves based on what beers are selling well and thus command more space while unpopular beers lose shelf space.

Bud Light has lost over 20% of its customers since the Mulvaney backlash began and was dethroned as the best-selling beer in the country after more than two decades to Modelo Especial.

Brewers Molson Coors, Constellation Brands, which owns Modelo and Corona, and Yuengling, the oldest brewery in the US, are all gaining ground on Bud Light and are eager to take valuable shelf space from Anheuser-Busch brands.

Molson Coors CEO Gavin Hattersley told investors on an earnings call that brewer’s beers like Coors Lite and Miller Lite are “gaining significant amounts of shelf space at dozens of major US retailers.”

Bud Light losing its prime shelf space could be the final nail in the coffin of the brand’s hopes for a comeback.

Read All About It will keep you up-to-date on any developments to this ongoing story.

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