From Controversy to Crown: Michelob Ultra's Remarkable Rise to America's Top Beer

Michelob Ultra has made a stunning comeback to claim the title of the top-selling beer in the US, a feat achieved just two years after Bud Light’s infamous decline following a consumer backlash. According to Anheuser-Busch, the parent company of Michelob, data from Circana reveals that Michelob Ultra has surpassed Modelo Especial in US retail sales by volume as of September 14th.

The downfall of Bud Light began two years ago when its partnership with transgender influencer Dylan Mulvaney sparked boycotts, which severely impacted its sales. This controversy led to a significant shift in the beer market, highlighting the influence of social issues on consumer behavior. Meanwhile, Constellation Brands, which owns Modelo and Corona, pointed to unfavorable US immigration policies as a factor contributing to their declining beer sales, particularly as this demographic represents a substantial portion of their customer base.

Earlier this month, Constellation cut its full-year sales projections, citing a “challenging macroeconomic environment” and acknowledging that Hispanic consumers, who make up about half of their sales, have been affected by these policies. It’s noteworthy that other consumer giants, like Coca-Cola and Colgate-Palmolive, have also reported weakened sales tied to the same demographic trends.

The overall landscape of the US beer industry has been sluggish, with alcohol consumption declining over the past four decades, according to the National Institute on Alcohol Abuse and Alcoholism. Despite a challenging year marked by boycotts and a slow recovery, Anheuser-Busch has found new success through key strategies. The launch of Michelob Ultra Zero, a non-alcoholic beer option, and aggressive marketing campaigns, including sponsorships at significant sporting events like the FIFA Club World Cup, have propelled the brand’s growth.

In this dramatic shift, Michelob Ultra not only revitalizes Anheuser-Busch’s portfolio but also signals potential shifts in consumer preferences amid evolving cultural standards.