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Bud Light sales continue to reel in the wake of the Dylan Mulvaney controversy, as new data shows Corona Light and Coors Light have reaped the benefits of Buds decline.

Data from Evercore ISI shows that in the 12-week period leading up to July 2, Bud Lights sales volume fell by 27.1% over that timeframe which includes much of the aftermath following transgender activist Dylan Mulvaneys early April social media post showing the custom can Bud Light provided her with.

In that same period, rival light beers saw sales rise.

Coors Light’s sales volume rose by 17.8%, while Miller Lites increased by 14.3% and Corona Lights ticked up by 3%. 

The fallout from the Bud Light controversy has spilled over into other Anheuser-Busch InBev beers which have also suffered from sales declines. 

The Bud Light family of products, which includes not only the beer but also a seltzer that shares its name, was down 28.5% in terms of collective sales volume over that period.

Meanwhile, Budweisers sales volume dipped by 13.5% and Busch Lights declined by 9.8% over the same period.

Collectively, Anheuser-Busch InBev beer sales were down 15.4% in the 12 weeks leading up to July 2, according to the Evercore ISI data.

The companys beer brand which has seen the smallest decline was Michelob Ultra, which was down just 4.5%.

The beer sales volume lost by Anheuser-Busch InBev brands has contributed to gains by rival beer brands owned by Constellation Brands and Molson Coors.

In mid-June, Constellations Modelo Especial dethroned Bud Light as the top-selling U.S. beer in terms of dollar sales in the prior four weeks according to Nielsen data analyzed by Bump Williams Consulting. However, at that point, Bud Light remained the top-selling beer brand on a year-to-date basis.

The Evercore ISI data showed that sales of Modelo Especial were up 11% in the 12 weeks preceding July 2.

Aside from the gains by Modelo and Corona Light, one of Constellation Brands beers that saw the most sales volume growth was Corona Familiar, which was up 26.6%.

Taken together, Constellations beer sales volume was up 10% in the 12 weeks leading up to July 2.

This week, the stock price for Constellation Brands hit an all-time high, closing at $269.20 on Thursday topping the prior record of $257.49 in late November 2022.

Coors Banquet saw the biggest jump in sales volume of Molson Coors brands with a sales volume increase of 24.6% over that period, followed by Coors Light and Miller Lite.

Overall, Molson Coors beers saw a 10.7% increase in the 12 weeks before July 2.

Anheuser-Busch InBev has sought to distance itself from the controversy since shortly after it began.

CEO Brendan Whitworth said in April, “We never intended to be part of a discussion that divides people. We are in the business of bringing people together over a beer.”

As part of the brands effort to move beyond the controversy, Bud Light recently launched its summer marketing campaign the theme of which is “Easy to Summer” which the company hopes will help reverse the recent trend.

Todd Allen, VP of marketing for Bud Light, previously told FOX Business, “Its incredibly clear the amount of love and passion people have for Bud Light, and we care deeply about our consumers. And what Ive heard over the past few weeks is that people want us to get back to what we do best: being the beer of easy enjoyment. This new work is really about reaffirming the role that Bud Light plays for our drinkers: celebrating a summer of fun and entertainment through music, backyard grilling, football, and easy enjoyment.”

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Interest rate cut – but economic growth forecast slashed in blow to chancellor

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Interest rate cut - but economic growth forecast slashed in blow to chancellor

The Bank of England has cut interest rates by another quarter percentage point, bringing down the cost of borrowing to 4.5%.

And in a sign that households can expect more cuts in the months to come, two members of the Bank‘s Monetary Policy Committee said they would have preferred to reduce rates even more, by a full half percentage point.

Follow live reaction to interest rate cut in the Money blog

However, the Bank slashed its forecast for economic growth, forecasting that the economy will skirt clear of a formal recession only by the narrowest margin in the coming months, and downgraded its estimate of the economy’s ability to generate income. And in a further blow to the chancellor, it said her latest growth plans, unveiled in a speech last week, will add nothing to gross domestic product growth in its forecast horizon.

The Bank’s governor, Andrew Bailey, said: “It will be welcome news that we have been able to cut interest rates again today. We’ll be monitoring the UK economy and global developments very closely and taking a gradual and careful approach to reducing rates further.

“Low and stable inflation is the foundation of a healthy economy and it’s the Bank of England’s job to ensure that.”

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UK interest rate cut to 4.5%

The Bank’s forecasts seem to indicate that there will be at least two further rate cuts in the coming years and that that will be enough to bring inflation down towards its 2% target. However, investors are betting on more cuts.

The Monetary Policy Report and Bank forecasts released alongside the decision today signal that the economy is due to have another few years of weakness. They cut the forecast for economic growth this year, next year and the following year, as well as raising the inflation forecast. The Bank also said that the economy’s potential growth rate had dropped, down from 1.5% this time last year to 0.75% at the moment.

It said that while it expected last October’s budget to boost economic growth by 0.75%, thanks largely to greater public investment, it also expected the National Insurance rise to weigh down on activity, in particular by pulling down employment.

Analysis: Where do interest rates go from here?

It also warned that the tariffs threatened by Donald Trump on various economies posed a risk for economic growth in the coming years, though it has yet to incorporate them into its models.

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Interest rate path is tricky to navigate in tougher economy

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Interest rate path is tricky to navigate in tougher economy

Let’s start with the simple bit: interest rates have been cut – down by another quarter percentage point to 4.5%. But what happens next?

Not long ago, the answer was quite simple: the Bank of England would carry on cutting borrowing costs, one quarter point cut every three months, until they reached, say, 3.5%.

That, at least, was the expectation this time last year.

Money latest: First-time buyers warned over auctions

But things have become more complex, more unpredictable in recent months.

Instead there are two paths ahead of us. One of them, let’s call it the high road, sees those borrowing costs being cut only gradually, down to 4% in a couple of years’ time.

Down the other road, the low road, the outlook is quite different: rates will be cut faster and more. They go down below 4%, perhaps as low as 3.5%, perhaps even lower.

More on Bank Of England

The funny thing about today’s splurge of information and forecasts from the Bank of England is that it’s not entirely clear whether we’re on the high road or the low road anymore.

Now, strictly speaking, the forecasts and fan charts produced by the Bank’s staff tend towards the former, more conservative view – the two cuts.

But then look at the voting patterns on the monetary policy committee (MPC), where two members, Swati Dhingra and Catherine Mann just voted for a full half percentage point cut, and you’re left with a different impression. That rates will go lower, and quickly.

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Britain has ‘huge potential’

And in truth, that’s what often happens when the economy is weakening.

When gross domestic product, the best measure of economic output, is flatlining or shrinking, when inflation is low (especially when you look beyond the temporary bump caused by energy prices) – that’s usually precisely the time the Bank slashes rates with abandon.

And that’s precisely the situation the UK finds itself in at the moment.

Read more from Sky News:
Tesco eyes delivery of Crown Post Office branches
Starmer to slash red tape to build nuclear reactors
Race to avoid Trump tariffs as US imports hit record high

But the problem is that a few things have complicated matters.

One is that the government decided to splurge more money in last October’s budget. That extra money sloshing around in the economy makes the Bank somewhat less willing to cut rates.

Another is that although the economy is weak, inflation is still high – indeed, the Bank actually raised its forecast for the consumer price index in today’s forecasts. Another is that the world economy has become a significantly more unstable place in recent months.

Germany is in recession. The US, under Donald Trump, is threatening tariffs on its nearest allies.

It’s not altogether clear whether the response to all this is lower interest rates.

Added to this, despite the chancellor’s best efforts, there is little evidence that her pro-growth policies are boosting economic growth – at least according to the Bank’s own forecasts.

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Reeves risks economic ‘doom Loop’

These are tricky waters to navigate.

All of which helps explains why it’s no longer quite as clear as it once was what happens next.

My suspicion is that the Bank will end up cutting rates, probably more than those two cuts baked into its forecasts. But such forecasts are even more fraught than usual.

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UK

Interest rate path is tricky to navigate in tougher economy

Published

on

By

Interest rate path is tricky to navigate in tougher economy

Let’s start with the simple bit: interest rates have been cut – down by another quarter percentage point to 4.5%. But what happens next?

Not long ago, the answer was quite simple: the Bank of England would carry on cutting borrowing costs, one quarter point cut every three months, until they reached, say, 3.5%.

That, at least, was the expectation this time last year.

Money latest: First-time buyers warned over auctions

But things have become more complex, more unpredictable in recent months.

Instead there are two paths ahead of us. One of them, let’s call it the high road, sees those borrowing costs being cut only gradually, down to 4% in a couple of years’ time.

Down the other road, the low road, the outlook is quite different: rates will be cut faster and more. They go down below 4%, perhaps as low as 3.5%, perhaps even lower.

More on Bank Of England

The funny thing about today’s splurge of information and forecasts from the Bank of England is that it’s not entirely clear whether we’re on the high road or the low road anymore.

Now, strictly speaking, the forecasts and fan charts produced by the Bank’s staff tend towards the former, more conservative view – the two cuts.

But then look at the voting patterns on the monetary policy committee (MPC), where two members, Swati Dhingra and Catherine Mann just voted for a full half percentage point cut, and you’re left with a different impression. That rates will go lower, and quickly.

Please use Chrome browser for a more accessible video player

Britain has ‘huge potential’

And in truth, that’s what often happens when the economy is weakening.

When gross domestic product, the best measure of economic output, is flatlining or shrinking, when inflation is low (especially when you look beyond the temporary bump caused by energy prices) – that’s usually precisely the time the Bank slashes rates with abandon.

And that’s precisely the situation the UK finds itself in at the moment.

Read more from Sky News:
Tesco eyes delivery of Crown Post Office branches
Starmer to slash red tape to build nuclear reactors
Race to avoid Trump tariffs as US imports hit record high

But the problem is that a few things have complicated matters.

One is that the government decided to splurge more money in last October’s budget. That extra money sloshing around in the economy makes the Bank somewhat less willing to cut rates.

Another is that although the economy is weak, inflation is still high – indeed, the Bank actually raised its forecast for the consumer price index in today’s forecasts. Another is that the world economy has become a significantly more unstable place in recent months.

Germany is in recession. The US, under Donald Trump, is threatening tariffs on its nearest allies.

It’s not altogether clear whether the response to all this is lower interest rates.

Added to this, despite the chancellor’s best efforts, there is little evidence that her pro-growth policies are boosting economic growth – at least according to the Bank’s own forecasts.

Please use Chrome browser for a more accessible video player

Reeves risks economic ‘doom Loop’

These are tricky waters to navigate.

All of which helps explains why it’s no longer quite as clear as it once was what happens next.

My suspicion is that the Bank will end up cutting rates, probably more than those two cuts baked into its forecasts. But such forecasts are even more fraught than usual.

Continue Reading

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