Brand Switching or Behavior Change: The 2023 Bud Light Boycott's Impact on Alcohol Purchases

Abstract

This study investigates the 2023 Bud Light boycott's impact on overall alcohol purchases. I employ a series of difference-indifferences designs comparing pre-and post-boycott purchases, focusing on households previously loyal to Bud Light. Results show a 34-37% drop in Bud Light volumes and a net reduction in total alcohol purchases by 5.5-7.5%. Brand switching to other beers only partially offset the reduction in purchases. Consumers did not increase purchases of wine or spirits. The findings highlight that politicized boycotts can influence broader public health outcomes by curbing aggregate alcohol purchases.

Keywords: Boycott, Bud Light, Brand Switching, Alcohol

JEL Classification: D12, L10, M31, I18