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Michelob Ultra has officially become the best-selling beer in the United States, overtaking Modelo Especial in retail sales by volume. This shift comes two years after Bud Light, also owned by Anheuser-Busch, lost its top spot due to a significant consumer backlash. The controversy began when Bud Light partnered with transgender influencer Dylan Mulvaney, which led to a boycott and a sharp decline in sales. Anheuser-Busch, referencing data from Circana, announced that Michelob Ultra now leads the market, marking a major change in the American beer landscape. Modelo Especial, owned by Constellation Brands, has faced its own challenges. Constellation has attributed its declining sales to stricter US immigration policies, which have resulted in fewer Hispanic consumers in the country. This is significant because about half of Constellation's sales come from Hispanic customers. Earlier this month, Constellation lowered its full-year sales forecast, citing a 'challenging macroeconomic environment. ' Other major companies, such as Coca-Cola and Colgate-Palmolive, have also reported weaker sales among Hispanic consumers in North America, suggesting that changing demographics and policies are affecting a wide range of businesses.

The overall beer industry in the US has been struggling, as Americans have been drinking less beer over the past forty years, according to the National Institute on Alcohol Abuse and Alcoholism. Anheuser-Busch faced a tough year in 2023, not only because of the Bud Light boycott but also due to criticism of its response. The company put two executives on leave, but this move was also met with backlash. Bud Light's sales dropped dramatically, ending its more than two-decade reign as the country's top-selling beer. In contrast, Michelob Ultra has gained popularity, partly thanks to the launch of Michelob Ultra Zero, a non-alcoholic beer. Anheuser-Busch has also invested heavily in marketing Michelob Ultra, promoting it at major sporting events like the FIFA Club World Cup, which has helped boost its visibility and sales.

The changing fortunes of these beer brands highlight how quickly consumer preferences can shift and how companies must adapt to stay competitive. Michelob Ultra's rise shows the importance of innovation and effective marketing, especially in a market where overall consumption is declining. As the beer industry continues to evolve, it will be interesting to see whether Michelob Ultra can maintain its lead or if another brand will emerge as the new favorite. For now, Anheuser-Busch is celebrating Michelob Ultra's success, while other companies are rethinking their strategies to win back customers in a challenging environment.