Modelo Especial recently dethroned Bud Light as the most popular beer in the United States, but why did Modelo, in particular, become America’s new favorite beer?
The downfall of Bud Light occurred after the brand launched a controversial marketing collaboration with transgender activist Dylan Mulvaney, as previously reported by The Dallas Express.
After Mulvaney posted a video revealing personalized Bud Light cans with the influencer’s face printed on them, consumers opposed to the collaboration launched a boycott of the brand, causing Bud Light sales to plummet.
However, according to one analyst, another factor contributing to Modelo surpassing Bud Light could be the growing Hispanic population in the United States.
“Everybody kind of figured Bud Light was getting hit by that boycott so that fell out of number one,” said Jack Hough, associate editor of the financial news magazine Barron’s, appearing on Fox Business.
“If I told you that the new top-selling brand is Mexican, you might be surprised,” he continued. “If I told you it’s Mexican and not Corona … who would’ve thought Modelo Especial?”
Hough proposed that Modelo became the brand to usurp Bud Light partly because the Hispanic drinking age population in America is growing rapidly compared to the non-Hispanic drinking population.
“There’s an irony here,” he continued. “This is an American beer icon, Bud Light, but it’s been European-owned for 15 years. … An American beer icon that is technically European has been dethroned by a Mexican brand that is arguably American.”
Hough suggested a second reason for Modelo’s success was “premiumization” — the demand for exclusive premium products made from high-quality ingredients, in this case, craft beers and spirits. The market for premium alcoholic drinks is expected to grow by 13% by 2024, according to IWSR Drinks Market Analysis.
Modelo’s sales are up 15% from last year, having sold $333 million worth of beer in May.
As previously reported by The Dallas Express, Bud Light’s parent company Anheuser-Busch sold $297 million of the beer in May, marking a 23% drop from last year.
While Anheuser-Busch also owns Modelo in most of the world, the beer is owned by Constellation Brands in the United States, having purchased it from Anheuser-Busch in 2013.
A Constellation spokesperson told CBS the company intends to further grow Modelo sales by introducing the beer “to new consumers through increased distribution and presence at retail.”