Michelob Ultra has risen to the top of the U.S. beer market, surpassing Constellation Brands’ Modelo Especial as the country’s best-selling beer, according to data released by Anheuser-Busch InBev (AB InBev) on Monday. The light lager now holds the number-one spot in retail channels for the 52 weeks ended September 14 and also leads in bars and restaurants, based on Nielsen IQ data for the 52 weeks ended July 12.
The rise of Michelob Ultra represents a major victory for AB InBev, reversing the company’s fortunes after a tumultuous period that saw Bud Light — the company’s flagship brand — lose its long-held dominance. Bud Light had been America’s top-selling beer for more than two decades before being unseated two years ago by Modelo Especial in the wake of backlash over a partnership with transgender influencer Dylan Mulvaney. That controversy sent shockwaves through AB InBev, opening the door for rivals like Modelo to capture market share.
Now, Michelob Ultra has reclaimed the spotlight for AB InBev, buoyed by its appeal to a broad range of consumers who have embraced its lighter, lower-calorie profile. The brand’s success highlights the continued strength of Anheuser-Busch’s portfolio and its ability to adapt to shifting consumer preferences in an increasingly competitive beer market.
For Constellation Brands, the brewer of Modelo Especial, the loss of the top spot comes amid several challenges. Modelo’s growth had been fueled by both Hispanic and non-Hispanic consumers, but declining demand from Hispanic drinkers — historically roughly half of Constellation’s customer base — has weighed on the brand. Company executives have cited economic pressures, including job losses linked to former President Donald Trump’s immigration policies, as factors affecting Hispanic consumers’ spending. Additionally, Constellation is grappling with external pressures such as tariffs on aluminum and Mexican imports, which have further strained the company’s performance.
Earlier this month, Constellation adjusted its fiscal-year forecast downward, citing a “challenging” economic environment. The company now anticipates that net beer sales will decline 2% to 4% due to lower volumes and the impact of tariffs, compared with a prior forecast that predicted sales would be flat to rise up to 3%.
Meanwhile, AB InBev has enjoyed a strong stock performance this year, with shares rising more than 16%, while Constellation’s stock has fallen nearly 39%, reflecting the market’s confidence in Michelob Ultra and AB InBev’s broader beer portfolio. Analysts say the shift in rankings underscores both the volatility of consumer preferences and the resilience of brands that can capitalize on changing tastes.
The rise of Michelob Ultra also signals a broader trend in the U.S. beer market, where light lagers and lower-calorie options have gained favor among drinkers seeking healthier alternatives without sacrificing flavor. As AB InBev consolidates its position atop the U.S. beer landscape, Constellation faces the challenge of re-energizing its flagship brands while navigating economic and demographic headwinds that could continue to impact demand.
With Michelob Ultra now firmly in the lead, the battle for America’s beer drinkers remains fierce, highlighting the competitive pressures shaping the market and the importance of brand agility in responding to changing consumer tastes, cultural dynamics, and broader economic factors.
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