Molson Coors Strikes Gold: How Bud Light Backlash Sparked an Unstoppable Company Transformation

According to Molson Coors, the market share gained by Coors Light and Miller Lite from their competitor Bud Light is not just a temporary trend, but rather a lasting change in the dynamics of the US market. In the second quarter of 2023, the sales of Coors Light and Miller Lite brands combined surpassed Bud Light by 50% in terms of total industry dollars. This is a significant shift considering that in 2022, Bud Light had a larger market share compared to both brands combined.

Bud Light experienced a decline in sales starting in May due to backlash caused by its brief collaboration with trans influencer Dylan Mulvaney. The partnership sparked anger among certain US conservatives, who even threatened to boycott the brand. AB InBev, the parent company of Bud Light, reported a significant 14.1% decrease in volume sales during the second quarter, mainly attributed to Bud Light's performance.

During the company's Strategy Day, CEO Gavin Hattersley confidently stated that based on the data gathered over the past six months, Molson Coors firmly believes that the market dynamics have permanently changed, contrasting with AB InBev's assurance to investors that Bud Light's difficulties will be resolved soon.

The company claimed that retailers are reallocating shelf space to the Coors Light and Miller Lite brands.

Molson Coors also highlighted its efforts to seize opportunities and gain momentum from its competitor's misfortune.

Chief commercial officer Michelle St Jacques, who previously served as the company's CMO until March of this year, attributed the progress made by the brands in 2023 to the ongoing efforts since 2019 to rejuvenate them. These efforts have focused on enhancing marketing effectiveness and improving sales execution, while also consolidating core brand messaging centered on "great taste and refreshment".

St Jacques expressed that Molson Coors' core brands, such as Miller Lite and Coors Light, have shown consistent growth in sales even before this year. She expressed a commitment to taking the brands to the next level in the coming year, with robust marketing plans in place that will captivate both consumers and distributors.

Putting ‘guardrails’ in place

AB InBev was taken aback by Bud Light's surprising decline in sales in the US. In response, the company has made efforts to stress that its collaboration with Mulvaney was a single instance of one can, one influencer, and one post, and not a comprehensive campaign.

Yesterday, an investor expressed concerns to Molson Coors that the backlash experienced by Bud Light could potentially affect any brand. The investor inquired whether the company has implemented any measures to prevent similar incidents from occurring to its own brands. In response, St Jacques emphasized that Molson Coors prioritizes the effectiveness of its campaigns and platforms among its current customer base, as well as the target audience it aims to attract. She highlighted the importance of maintaining "consistency" in the company's marketing messages.

Internally, the company has established a Marketing Compliance Committee overseen by the legal team. This long-standing committee, as stated by St Jacques, plays a crucial role in gathering diverse perspectives within the organization. By seeking input from individuals across various departments, the committee aids in making informed decisions for new campaigns and ideas.

The company actively solicits feedback from its brand partners who distribute its products.

"Our sales team and distributors often have valuable insights into their local markets, which provide us with a fresh perspective to refine our creative ideas," explained St Jacques.