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I read your post after I posted mine and thought "oh no maybe that was offensive!".
I have never met anyone named Bud so my opinion is mostly formed on the character of Bud from Married with Children and of course that it a beer (although I really like Killian & that is a beer).
If your grandson was called Bud & you told me the reason why, I would probably think that it was sweet (I still wouldn't like the name but would like the reasoning).
Side note: Me & my husband use Buddy as a term of endearment for each other (& our dog) but as a given name, it just rubs me the wrong way.