A neon sign advertising Modelo Mexican beer.

In June 2023, Modelo Especial surpassed Bud Light to become the top-selling beer brand in America. Since that time, the sales difference between the two brands has increased—and Michelob Ultra has also surpassed Bud Light to claim the second-best selling spot in the country—continuing a trend of growth that has been evident for several years.

“Modelo, and to some extent other Mexican import beer brands, have managed to resonate with consumers through a lifestyle message that is both targeted and universally appealing,” noted Kate Bernot, lead analyst with Sightlines, a beverage alcohol insights platform, during a phone interview. “Miller and Coors, in their attempt to appeal to a broad audience, lost their special appeal to anyone. Then along came Corona, Modelo, and Pacifico, offering a fresher and more authentic experience.”

“They are simply cooler brands,” Bernot remarked, referring to the Mexican import beers.

Although some attribute the recent drop in Bud Light sales to the Dylan Mulvaney controversy, the brand had been experiencing a sales decline for several years. During this period, imports from brands, especially those from Mexico, have been gaining popularity. Predictions from Sightlines had indicated that Modelo Especial would surpass Bud Light in sales, and while the Mulvaney incident did expedite shifts in the rankings of America’s leading beers, this change has been in motion for some time.

As noted by Bernot, first-generation immigrants often influence trends in the food and beverage sector, which is reflected in the rising popularity of Latin American culture. “We can see this in music,” Bernot remarked, referencing artists like Bad Bunny and Nathy Peluso. “The significance of these beers is amplified by the current prominence of Hispanic cultural contributions—whether in food, music, or art—within mainstream American culture.”

Bernot references figures from the Beer Institute, indicating that in 2023, beer imported from Mexico constituted approximately 81% of the total imported beer volume in the U.S., marking a 2% increase from the previous year. A decade ago, Mexican beer accounted for only 61% of total beer imports.

This growth cannot be solely ascribed to the Hispanic market. Bernot points out that in 2023, a larger proportion of non-Hispanic households (61%) purchased Modelo compared to Hispanic households (39%). Moreover, the craft beer sector has also witnessed a notable rise in the popularity of beers labeled as “Mexican lager.”

In an interesting twist within the beer industry, Constellation Brands holds the exclusive rights to sell Modelo beer brands, such as Corona and Pacifico, within the United States, while the world’s largest beer conglomerate, AB InBev, maintains rights globally. Following AB InBev’s acquisition of Grupo Modelo in 2012, the Justice Department intervened and required AB InBev to divest the rights to sell Modelo’s beer brands in the U.S.

Constellation stepped in as the buyer and has witnessed remarkable growth of these brands since then. “Constellation is just really good at marketing and selling their beers,” noted Bernot. As for why AB InBev, despite its immense size and marketing power, struggled to adapt, Bernot explained, “They tried. They anticipated the threat from Mexican imports and launched Bud Light Lime back in 2008. It had some success, but Bud Light can’t easily shake off a century of marketing history.”

Further fueling Constellation’s rise with its Mexican beer labels is its collaboration with Reyes Beverage Group, the largest beer distributor in the United States. “Combining these in-demand brands with one of the most ambitious wholesalers in the nation is like throwing gasoline on a fire,” remarked Bernot.

The very threat posed by Mexican import brands prompted AB InBev’s acquisition of Grupo Modelo in 2012. However, the anti-trust concerns raised by the Justice Department led to Constellation Brands obtaining the Modelo brands in the U.S., ultimately resulting in Modelo Especial surpassing AB InBev’s Bud Light to become the top-selling beer in America.

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