Full Breakdown
Michelob Ultra Overtakes Modelo Especial as America's Best-Selling Beer
9/24/2025, 8:47:36 PM
Shift in Market Leadership
Michelob Ultra has become the best-selling beer in the United States, surpassing Modelo Especial in retail sales by volume as of September 14, 2025, according to data from Circana. This shift marks a significant change in the beer market, particularly following a tumultuous period for Anheuser-Busch's Bud Light brand, which lost its long-held title after a consumer backlash over its marketing partnership with transgender influencer Dylan Mulvaney.
Factors Behind the Change
Anheuser-Busch attributes Michelob Ultra's rise to several strategic initiatives, including the launch of Michelob Ultra Zero, a non-alcoholic beer, and aggressive marketing campaigns featuring endorsements from high-profile athletes like Lionel Messi. The brand's focus on positioning itself as a low-carb option has also resonated with consumers. In contrast, Modelo's sales have declined, particularly among Hispanic consumers, who historically represent a significant portion of its customer base.
Constellation Brands, the parent company of Modelo, has cited the impact of stricter immigration policies under President Donald Trump as a contributing factor to the decline in sales. CEO Bill Newlands indicated that fears surrounding deportation have deterred many Hispanic customers from frequenting bars and restaurants, directly affecting Modelo's performance.
Industry Context
The overall beer industry is facing challenges, with retail sales dropping nearly 5% year-over-year, totaling approximately $34.7 billion in the first half of 2025. This decline reflects changing drinking habits among Americans, as beer consumption has been on a downward trend for decades. Despite Michelob Ultra's success, the broader market remains under pressure, with companies like Coca-Cola and Colgate-Palmolive also reporting declines in sales among Hispanic consumers.
Criticism & Opposition
Critics have pointed to the broader implications of immigration policies on consumer behavior. The connection between these policies and declining sales in the beer market has raised concerns among industry stakeholders. Some argue that the economic environment, exacerbated by political factors, has created a challenging landscape for brands reliant on Hispanic consumers.
Official Statements & Responses
Anheuser-Busch has expressed optimism regarding Michelob Ultra's performance, emphasizing the brand's successful marketing strategies and product innovations. Meanwhile, Constellation Brands continues to navigate the complexities of the market, acknowledging the impact of external factors on its sales.
Verbatim Quotes
- “For over 20 years, @MichelobULTRA has redefined what a superior light beer can be.” — Anheuser-Busch
- “Constellation Brands, the beers' parent company, warned in April that the president's deportation push was spooking Latino customers and hurting beer sales.” — Bill Newlands, CEO of Constellation Brands
What's Next
As the beer industry prepares for the upcoming 2026 World Cup in the United States, brands like Michelob Ultra are expected to ramp up marketing efforts to capitalize on the event. The ongoing challenges faced by Modelo and other brands will likely continue to shape the competitive landscape in the months ahead.
