Beer brand Bud Light has had an eventful 2023 with calls for boycotts against the company and declining sales.
While the company has lost market share to other beer brands, it could be in for more trouble in 2024 with a rival ready to go after one of its key demographics.
What Happened: Bud Light, which is owned by Anheuser-Busch InBev BUD, has been a staple in the National Football League market as the official beer of the league for over 20 years. The company is also a prominent Super Bowl advertiser each season.
The 2023 Super Bowl (Super Bowl LVII) saw Anheuser-Busch end its exclusive partnership with the league, opening the door for other beer brands to advertise during the big game.
Companies like Molson Coors Beverage Company TAP and Diageo DEO advertised in Super Bowl LVII alongside Anheuser-Busch InBev brands.
Coors Light, which is owned by Molson Coors, is among the first companies to announce that it will be advertising in Super Bowl LVIII.
According to AdAge, Coors Light plans to showcase at least one 2024 Super Bowl commercial that will air during the big game, set to be broadcast on Paramount Global Inc PARAPARAA owned CBS.
“Our decision to feature Coors Light in next year’s big game comes after several years of improving results and at a time of game-changing momentum for Molson Coors, especially our biggest brands,” Molson Coors Chief Marketing Officer Sofia Colucci said.
Colucci called Coors Light the “perfect brand to bring more chill when the heat is on at the biggest stage in sports.”
Super Bowl LVII saw Coors Light and Molson Coors brands Miller Lite and Blue Moon featured in an ad, the first appearance from the beer company in over 30 years due to the end of the exclusive advertising rights previously held by Anheuser-Busch.
In 2023, advertisers shelled out between $6 million to $7 million for Super Bowl commercials. For Super Bowl LVIII, Paramount is aiming to secure a comparable price range from its advertisers. Prior to the start of the 2023 NFL season, Paramount had around 70% of its Super Bowl commercial inventory reportedly sold out.
Related Link: Dylan Mulvaney Wins Breakout Creator Award, Takes Subtle Shot At Bud Light In Speech
Why It’s Important: The news of a Super Bowl commercial, while months away, could spell trouble for Anheuser-Busch.
Bud Light has seen sales and market share decline since a controversy centered on influencer and trans activist Dylan Mulvaney.
Calls for boycotts and Bud Light being a “woke” brand have hurt the company and led to increased advertising spending to win back fans.
Among the areas, Bud Light is targeting are NFL fans and NCAA Football fans.
Now with news of Coors Light airing at least one Super Bowl commercial and looking to continue its momentum, beer market share could continue to be a hot topic ahead of the big game in February.
Molson Coors said last month that it was ramping up advertising spending in the second half of 2023 and beyond.
Coors Light is among the fastest-growing beer brands in the U.S., according to data from Circana. The momentum comes from beer drinkers making the switch to lite beers other than Bud Light.
While Bud Light has bet big on football fans in the past, Coors Light may be seeing momentum from using a similar approach. Coors Light is the sponsor of “College Game Day” on ESPN and has also offered items like the “Chill Throne” for tailgating, catering to football fans.
Benzinga recently reported that Mulvaney, a key figure behind the controversy with Bud Light, is hoping to be featured in a Super Bowl commercial in the future. Odds are low that Coors Light would use her and risk similar push back.
TAP, BUD Price Action: Molson Coors shares trade at $64.98 versus a 52-week trading range of $46.69 to $70.90. Shares of the beer stock are up 30% year-to-date in 2023.
Anheuser-Busch shares trade at $57.34 versus a 52-week trading range of $44.51 to $67.09. Shares of the beer stock are down 4% year-to-date in 2023.
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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