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DEE-ANN DURBIN, Associated Press

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Cans of Bud Lite cool in a refrigerator in Oakland, Calif., Friday, April 28, 2023. After more than two decades of being the best-selling beer in America, Bud Lite has slipped to number two. Modelo Especial, a Mexican lager, surpassed Bud Light in retail dollar sales in the month ending June 3. (AP Photo/Jeff Chiu)

After more than two decades as the best-selling beer in America, Bud Light has slipped into second place.

Modelo Especial, a Mexican beer, outperformed Bud Light in retail sales in US dollar terms in the month ended June 3, according to Nielsen data analyzed by Bump Williams Consulting. Modelo controlled 8.4% of grocery, groceries, and liquor sales in the United States; Bud Light fell to 7.3%.

Grupo Modelo, a Mexican brewer, is owned by Anheuser-Busch InBev, the same parent company as Bud Light.

It’s a milestone in Bud Light’s sales decline for months since early April, when critics angered by the brewer vowed to send a souvenir box to transgender influencer Dylan Mulvaney to boycott the brand. Bud Light has also faced backlash from Mulvaney fans, who believe the brand hasn’t done enough to support it.

Bud Light has been the best-selling beer in the U.S. since 2001, said Dave William, vice president of analytics and insights at Bump Williams, and it could still hold that crown this year. He noted that Bud Light’s 9% year-to-date market share still beats Modelo’s by 8%. And the sales volume of Bud Light is higher.

But Modelo seems to have the advantage, with its dollar sales increasing in exponential proportions each week. The launch of a new light beer, Modelo Oro, in May is increasing brand awareness.

Sales at bars and restaurants, which are hard to track, are not included in the retail numbers, and Bud Light had outperformed Modelo in those places prior to April. But David Steinman, vice president and executive editor of Beer Marketer’s Insights, said Modelo’s bar and restaurant sales are growing rapidly, and he believes Bud Light has generated steeper sales at bars and restaurants than at grocery stores.

Bud Light’s U.S. retail sales fell 24% in the week ended June 3, while Modelo Especial sales were up 12%, according to Dave Williams.

Mexican imports like Modelo and Corona have been the biggest bright spots in the stagnant US beer market for years, said Scott Scanlon, executive vice president at consulting firm Circana that tracks the alcohol market.

When the Modelo first went on sale in the United States in the 1990s, Scanlon said, it was marketed primarily to Hispanic drinkers. It launched English-language advertising in 2015 and has greatly expanded its client base since then. It’s especially popular with young drinkers, Scanlon said, who love its full flavor.

The Modelo is already a best-seller in markets like Los Angeles and Chicago, Scanlon said, but could still see significant growth in the future on the East Coast.

“Modelo was going to be the number one beer brand. It was fate because the growth numbers we are seeing and experiencing are amazing.” The only question was the time.

The pandemic has accelerated Modelo’s sales in the United States, Scanlon said, because he sees more sales from retail stores than from bars and restaurants. Bud Light’s steps increased the speed of his ascent.

Constellation Brands, a Rochester, New York-based company that has been authorized to sell Modelo in the United States since 2013 as part of an agreement with antitrust regulators after it bought InBev Grupo Modelo, said Wednesday that it has nearly doubled its marketing spending on Modelo over the past five years and is still You see a “trajectory of growth” in the US, but Bud Light is going to try to counter that.

Last month, InBev said it would triple its marketing spending in the US this summer, with a focus on sports and music festivals. Bud Light also remains a high profile sponsor of LGBTQ+ Pride events.

“For the year, Bud Light remains the number one brand in the United States nationally by volume and dollar sales,” an Anheuser-Busch spokesperson said Wednesday.