Michelob Ultra becomes US top-selling beer, overtaking Modelo Especial, Circana data show
Two years after Bud Light’s slump, Michelob Ultra’s rise comes amid broader shifts in American beer consumption and a challenging macro environment for the sector.
Michelob Ultra has become the best-selling beer in the United States for the year through Sept. 14, according to Circana data released Monday. The brand edged out Modelo Especial in U.S. retail beer sales by volume, marking a turnaround for Anheuser-Busch after a turbulent period for its flagship Bud Light brand.
Bud Light’s sales slumped two years ago following a boycott over its partnership with transgender influencer Dylan Mulvaney, triggering a public-relations setback and a management shake-up. Anheuser-Busch subsequently tackled the criticism by placing two senior executives on leave and overhauling its marketing oversight.
Anheuser-Busch said Michelob Ultra’s recent strength reflects a broader shift into lighter, premium options and the introduction of Michelob Ultra Zero, a non-alcoholic beer, which has helped the brand attract new buyers and maintain appeal among traditional beer drinkers. The brewer has increased marketing spend for Michelob Ultra, including sponsorships and high-profile events.
Constellation Brands, which owns Modelo and Corona, has acknowledged slower U.S. sales recently and has cited a tougher macro environment and policy headwinds as factors. About half of Constellation’s U.S. sales come from Hispanic consumers, and the company has previously blamed immigration policies for weakening demand in that segment.
Earlier this month, Constellation trimmed its full-year guidance, saying the macroeconomic environment remained challenging for beer and other categories.
The broader business landscape reflects a connection that several consumer companies have noted between immigration policy and North American sales. Coca-Cola and Colgate-Palmolive have also cited weaker demand from Hispanic shoppers in the region.
Industry data show the U.S. beer market has been soft amid evolving drinking habits. The National Institute on Alcohol Abuse and Alcoholism has reported that beer consumption has declined over the past four decades, as consumers diversify to wine, spirits and hard seltzers.
The 2023 period remains a reference point: Bud Light lost its long-held status after the fallout, and Anheuser-Busch’s response to criticism faced scrutiny. With Michelob Ultra Zero and ongoing marketing push, the company is positioning Michelob Ultra as a long-term growth driver as the beer category navigates a slower macro backdrop.