Mexico’s Modelo became the best-selling brand in the United States in May, with an 8.4% share of the US market, Mexico Daily reports.
Incumbent Bud Light fell from the top spot for the first time in nearly two decades after the beer’s owner, Anheuser-Busch, became embroiled in controversy. Sales of Modelo Especial beer grew 12.2% in the last month, while sales of Bud Light fell 7.3%.
The diversification of the Modelo brand under Constellation’s management in the US (it is licensed by Mexican owners Grupo Modelo to brew and distribute the brand in the US) is also helping the beer capitalize on the momentum it has gained by the decline of Bud Light sales.
“Modelo Especial seems to be increasing its sales growth every week as we move into the summer,” brand analyst Dave Williams told CNN cable news channel. He added that the Modelo Oro, a new low-carb version of Modelo Especial, appears to be a hit, boosting overall Modelo sales.
Mexican beer is also benefiting from a trend for Mexican alcohol in the US, Williams said. Tequila and mezcal have also seen strong sales in recent months, and the “springboard effect” of strong Cinco de Mayo sales in Mexican beverages in general has also helped Modelo.
Greg Gallagher, vice president of brand marketing for New York-based Constellation, said Modelo has been “enjoying an incredible run of success” in recent years and is looking to recreate the success Modelo traditionally sees with a Hispanic audience in the United States.
“Our growth is based on maintaining that core, but also attracting non-Hispanic customers, and we’re having incredible success,” he told CNN.
While some may seek to link Bud Light’s drop to the brand’s recent controversial ad campaign, which featured transgender influencer Dylan Mulvaney and angered both sides of the political spectrum, the drop in its sales reflects broader issues with the Belgian brewer, which also owns Busch Light, Michelob and Natural Light.
Mexican beer brands have seen significant growth in the US market in recent years, according to the Washington Post, which estimates that up to 80% of imported US beer comes from Mexico. Even before the Bud Light campaign, Modelo was on track to become the best-selling beer by 2030, the newspaper said.
If current sales trends continue, Modelo is well positioned to finish 2023 as the top-selling beer brand in the United States for the calendar year.
With information from CNN and The Washington Post