Michelob Ultra has become the best-selling beer in the United States, overtaking Modelo Especial after a two-year run at the top. The light lager, brewed by Anheuser-Busch InBev, claimed the No. 1 spot in retail sales for the 52 weeks ending Sept. 14, according to Circana data. It also leads sales in bars and restaurants, according to Nielsen IQ figures.
The shift marks a major comeback for AB InBev, which saw Bud Light lose its decades-long dominance in 2023 following a conservative backlash over a marketing partnership. Modelo seized the opening, rising quickly with help from growing demand among non-Hispanic drinkers. However, Constellation Brands, Modelo’s U.S. distributor, has recently struggled with weaker spending from Hispanic consumers, who have historically been a cornerstone of its business.
Economic pressures have compounded Modelo’s slowdown. Tariffs on aluminum and Mexican imports have raised costs, while job losses tied to federal immigration policies have weighed on key buyers. Earlier this month, Constellation lowered its full-year forecast, warning of a 2% to 4% drop in beer sales volumes. The company had previously expected stable or slightly higher sales.
Meanwhile, Michelob Ultra has capitalized on shifting consumer preferences. Marketed as a low-calorie, active lifestyle beer, it has gained traction among younger and health-conscious drinkers. That positioning, combined with AB InBev’s broad distribution network, has helped the brand extend its lead across grocery stores, bars, and sporting events.
The sales crown also reflects diverging fortunes on Wall Street. AB InBev’s stock is up more than 16% this year, while Constellation’s shares have plunged nearly 40%. Analysts say Michelob Ultra’s rise underscores both the resilience of light beer and the risks Modelo faces as it depends heavily on one demographic group.
Source: CNBC