Investing

Beer sales are rising, helped by Bud Light's ‘Dilly Dilly’ popularity

Key Points
  • Morgan Stanley says Bud Light's "Dilly Dilly" ad campaign may be a driver in rising beer sales.
  • The firm cites Nielsen sales data, which revealed one-month U.S. beer sales through June 16 rose 3.3 percent year over year.
A still image from a Bud Light: Dilly! Dilly! ad
Source: Bud Light: Dilly! Dilly! 

A popular ad campaign may be spurring alcohol sales, according to Morgan Stanley.

The firm cited Nielsen data that revealed one-month U.S. beer sales through June 16 rose 3.3 percent year over year, improving from the results over the previous 12-week and 52-week periods.

Anheuser-Busch Inbev, the owner of the Bud Light brand, was a standout, with 1.9 percent volume growth in the one-month period through June 16.

“The biggest improvement came from ABInBev, which gained share for the first time since 2011,” analyst Olivier Nicolai said in a note to clients entitled “Robust demand in June; ABInbev outperforming; Dilly Dilly effect?” Tuesday. “Both Budweiser and Bud Light posted improved momentum in June, down by just -1.4% and -2.3% in volume terms respectively. Dilly Dilly effect?”

Anheuser-Busch Inbev launched its “Dilly Dilly” campaign, created by the Wieden+Kennedy ad agency, in August of last year. The ads feature fictional medieval characters toasting each other with the catchphrase. The campaign became a viral, cultural phenomenon.

Morgan Stanley has an overweight rating for Anheuser-Busch Inbev shares.