Modelo Especial, the new best-selling beer in America
Mexican beer brewer Constellation Brands surpasses Anheuser-Busch’s Bud Light
For more than two decades, Anheuser-Busch’s Bud Light held the prized throne, but Mexican beer brewed by Constellation Brands, Modelo Especial, has now surpassed it, accounting for 8.4% of all US retail beer sales. Meanwhile, Bud Light achieved only a 7.3% market share, thus falling to second place in the ranking, according to a Nielsen analysis of data provided by the consulting firm Bump Williams.
The dollar sales trend for both beers has been completely opposite over the past four weeks: while Bud Light’s plummeted 24.4% compared to the same period last year, those of Modelo grew by 12.2%. However, despite this recent success, Bud Light remains the year’s best-seller so far.
Bud Light’s sales plummet after boycott campaign
Bud Light, the long-time best-seller, has been experiencing a nightmare for months. It began in April after transgender influencer Dylan Mulvaney posted an image of a personalised can of Bud Light on Instagram, which the brand had sent her as a gift. This incident generated controversy among conservative Americans, leading to a boycott campaign against Bud Light. According to some distributors, Bud Light may never retake the throne again.
Modelo consolidates beyond the Hispanic public
While Modelo has long been popular within the Hispanic community, the beer has been looking to expand beyond this demographic group and replicate the dominance it has in other demographic groups. According to Greg Gallagher, Constellation’s Vice President of Brand Marketing, Modelo has been “enjoying incredible success” in recent years by maintaining that consumer base and attracting non-Hispanic customers. Modelo is sold by Constellation Brands, which acquired the brand in 2013 from Anheuser-Busch, after US regulators required Anheuser-Busch to sell the US rights to Modelo Especial and Corona to gain approval for its acquisition from the Mexican manufacturer Grupo Modelo. Previously not among the top 10 beer brands in the US, the company now ensures that it is the brand leader in California as well as metropolitan areas like Chicago, Dallas and Baltimore.
Factors contributing to Modelo’s success
Several factors contributed to Modelo becoming the best-selling beer in America. These include strong support from retailers, excellent advertising, eye-catching packaging, and a “push effect” from Cinco de Mayo into the summer, according to consultancy Bump Williams. By contrast, Bud Light sales in the United States have been declining as consumers have switched to imported Mexican beers, new seltzers, wine and spirits. Meanwhile, Modelo and Michelob Ultra, a low-calorie beer made by Anheuser-Busch, have been gaining ground and were on track to outsell Bud Light at some point, but before the boycott, that turnaround seemed at least a year away.
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