- Michelob Ultra has topped Bud Light in draft beer sales for the first time.
Bud Light long ago lost the crown of the top-selling beer at retail stores. Now it has slipped out of the leadership position in a field that could be even more important: Tap sales.
New data from Draftlines Technologies, which monitors tap line sales in bars and restaurants, found the one-time flagship beer of Anheuser-Busch InBev has slipped to second place among patrons, with Michelob Ultra taking the lead, according to a report on CNN.
The leaderboard change became official last month and has widened in recent weeks.
While the switch still means AB InBev oversees the top two selling beers in bars and restaurants, it’s another blow to the Bud Light brand, which used to be pseudonymous with the company.
Last year, things went sideways when a partnership with transgender influencer Dylan Mulvaney sparked a series of protests and boycotts that saw the brand quickly fall from grace. Grocery and convenience store sales have since fallen to third place in the industry, with Modelo Especial taking the lead and Michelob Ultra coming in second.
Sales of cans and bottles are, of course, crucial, but tap sales are arguably more so as they generally lead to higher profit margins for both the brewer and the bar or restaurant. (Kegs are reusable and aluminum prices have been on the rise for some time.) They also represent an opportunity for a beer to connect with customers via merchandise giveaways and promotions. Even the tap handle is a marketing opportunity, putting the beer’s name in front of consumers and getting them familiar with it.
Draftline data shows the draft beer market is worth $21.8 billion to the beer industry each year, making up 25% of all beer sales in the U.S. And while fewer people, overall, are drinking beer these days, the drop-off at taps has been slow than that of packaged goods.
“We’re proud to have the top two beers on draft in the U.S. in Michelob Ultra and Bud Light, and by our data, Bud Light is more than 30% bigger than the next closest competitor,” an AB InBev spokesperson said in a statement. “Beyond just draft, Michelob Ultra continues to lead the industry as the #1 overall fastest-growing beer in the U.S. and is also the #2 overall beer brand in the U.S. behind only Bud Light, according to public Circana data.”