Modelo seeing 'remarkable growth' following Bud Light beer disaster

[useapen]

The maker of Modelo Especial said the discount beer label is seeing
“remarkable growth” following Anheuser-Busch’s disastrous tie up with
Dylan Mulvaney six months ago – and predicted that its momentum will
continue.

The Mexican-made beer, which unseated Bud Light as the No. 1 beer in the
US in August, gained more market share than any other beer brand in the US
over the summer, according to Circana.

The label — which racked up $3.9 billion in sales in 2021, making it the
biggest imported brand in the US, according to Statista — “achieved double
digit growth” in the latest quarter, said Bill Newlands, chief executive
of Constellation Brands.

The Victor, NY-based company — which also brews Corona in Mexico and
distributes it across the US — said its beer sales grew by 12% in its most
recent quarter ended Aug. 31 compared to a year ago.

Constellation raised its fiscal year earnings forecast to the high end of
its previous guidance.

Retailers are increasingly giving up shelf space that Anheuser-Busch once
commanded with its top brands, including Bud Light and Budweiser.

Modelo Especial’s sales growth is up by “double digits” this summer.Getty
Images for Modelo

Bud Light has lost about 20% of its customers since Mulvaney posted images
and videos on April 1 of herself with a Bud Light can.

The former ‘King of Beers’ now accounts for 8.1% of beer retail beer sales
year to date compared with Modelo’s 8.5%.
Despite Anheuser-Busch’s deep discounting and heavy investment in
advertising, a core group of customers appear to have left Bud Light for
good, industry experts say.

Bill Newlands is CEO of Contellation Brands, which owns Modelo Especial
and Corona.Constellation Brands
Constellation said it will hold the line on its price increases to about
1% to 2% despite its robust growth.

“It’s easier to keep your consumer than to go out and get them if you have
lost them,” Newlands said.

Constellation is expecting to grab even more shelf space in the spring
when most retailers “reset” their shelves for the year, giving more space
to its best selling products.

“There were some resets that occurred in the fall,” Newlands said on a
Thursday investor call, adding that the company will see a “strong reset
period” next year.

Transgender Influencer, Dylan Mulvaney, posted this image on social media
on April 1, setting off consumer boycott of the beer.Dylan
Mulvaney/Instagram

Corona, which has also benefitted from Bud Light’s demise, was the sixth
largest market share gainer in the quarter, Constellation said.

https://www.msn.com/en-us/money/markets/modelo-seeing-remarkable-growth-
following-bud-light-beer-disaster/ar-AA1hKNgw