Molson Coors Beverage Company has been downgraded to “neutral” by financial analysts this week, signaling the end of a hot streak that saw the brewer benefit from the high-profile boycott of Bud Light in 2023. While the company enjoyed record sales last year—thanks in large part to conservative backlash against its rival—it now faces slowing momentum as the boost begins to wear off.

In April 2023, Bud Light came under intense criticism from conservative consumers following its marketing collaboration with transgender influencer Dylan Mulvaney. The backlash led to a sharp drop in sales for Bud Light, with many drinkers turning to competitors such as Coors Light and Miller Lite—both owned by Molson Coors.

A record year—but now tougher comparisons

Molson Coors reaped the rewards throughout 2023, culminating in what it called “six years of profit growth” during its February earnings call. The Bud Light fallout provided a major lift in U.S. market share, and the brewer experienced strong gains across its core portfolio.

However, analysts now caution that the company is entering a challenging period of comparison. One city analyst noted that Molson Coors is “starting to cycle a record year,” referring to the sharp market-share gains seen last spring and summer. As the brand begins to lap those figures, early April 2024 data shows its beer sales and volumes are now turning negative year-on-year.

The downgrade triggered a small dip in share price, with Molson Coors stock falling 0.4%—although it's still up around 9% over the past 12 months, reflecting the scale of last year’s gains.

Bud Light backlash fades

The initial backlash against Bud Light was swift and severe, but by September 2023, public sentiment had largely shifted. Surveys at the time showed 80% of consumers felt either “favourable or neutral” toward the brand, suggesting the storm had passed. Bud Light has since ramped up its marketing activity, including a renewed sponsorship deal with the NFL’s Washington Commanders.

As consumer attention moved on, Molson Coors’ elevated market share is proving difficult to maintain. But the company has indicated that it’s not standing still in the face of softer beer performance.

Shifting strategy beyond beer

Looking ahead, Molson Coors is actively working to diversify its portfolio. CEO Gavin Hattersley has stated that younger consumers—particularly those in their 20s—are placing greater emphasis on health, wellness, and moderation. In response, the company is exploring new product lines outside of traditional beer, including low- and no-alcohol options and alternative beverages.

This shift marks a strategic pivot for the business as it adapts to long-term consumer trends. While the Bud Light boycott offered an unexpected short-term boost, Molson Coors now appears focused on sustainable growth beyond its legacy beer brands