Does Anheuser-Busch own Modelo? Partnership explained as latter steals Bud Light's top-selling beer spot

Mexican lager, Modelo Especial has climbed up the charts to become the top-selling Beer in America for the month of May. This is the first time in over two decades that Bud Light has been dethroned from the top spot. Bud Light's fall from grace continues in light of the conservative backlash that the beer brand has been receiving ever since it partnered with trans activist Dylan Mulvaney.

Modelo's ownership varies in the US and outside the country. The beer maker is owned by Anheuser-Busch InBev in countries outside of the United States. However, within the US, it is owned by the New York-based beverage conglomerate Constellation Brands, helmed by CEO, Bill Newlands.

If retailers wish to distribute the beer outside the US, then they get in touch with Anheuser-Busch InBev, but if they want to do so within the United States, they have to get in touch with Constellation Brands. Constellation Brands also manufactures and distributes many other popular alcoholic beverages, including Kim Crawford Wines and Svedka Vodka.

In 2013, both companies merged to form Groupo Modelo and were permitted to keep their own distinctive distribution rights. The group also produces another popular beer, Corona. The Mexican Beer brand can be bought from Supermarkets, liquor stores, and retail corporations across America. Certain products can also be found in Walmart.

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Modelo first to dethrone Bud Light since 2001

According to Data from Beverage Alcohol Consulting Firm Bump Williams, Modelo represented 8.4% of retail Beer sales in the US, while Bud Light managed 7.3%, in a four-week period that ended on June 3. During this period, The Mexican beer brand's Dollar sales increased by 12.2%, while that of Bud Light fell by 24.4%. This is the first time that Bud Light has been dethroned since 2001.

Although these four weeks have been nothing but grim for Bud Light, the once mighty beer brand was still the most popular Beer of 2023, on a year-to-date basis. Bud Light made up 9% of the total market while the Mexican beer brand is not far behind with 8%. This is in no way a silver lining as Bud Light sales were down by 24% from where they were a year ago.

Not so long ago in March, Bud Light represented 10% of total Beer sales. However, controversy struck in early April 2023, when the brand collaborated with trans activist Dylan Mulvaney to celebrate her '365 Days of Girlhood' milestone.

'#BoycottBudLight' trended on Twitter as conservatives criticized the brand for its move. Many individuals shot up a bunch of Bud Light cans and lambasted the company for being "woke."

Bud Light's response did little to help their profits, thereby leaving them in the middle of quite a sticky situation.

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Modelo was among the few brands that benefitted from alcohol prohibition of the 1920s

Founded and first brewed in 1925, in Tacuba, a northwestern part of Mexico City, the now-number one American beer is nearly 100 years old. In its early days, it was brewed alongside Corona Cervecería Modelo brewery in Mexico City.

The brand benefitted from the alcohol prohibition of the 1920s. (Image via Twitter/@ModeloUSA)

Although it was in 1990 that it was first introduced to America, the brand's ties with the US go way back to the prohibition era. When many manufacturers suffered due to the restrictions imposed by the alcohol prohibition of the 1920s, the Mexican beer brand was one of the few that benefitted. Due to the lack of availability of alcohol in the US, individuals turned to Mexican beers.

This is also not the first time Modelo has beaten Bud Light. In 2018, Bud Light lost out to the Mexican beer brand for exclusive sponsorship rights to the Ultimate Fighting Championship, popularly called UFC.