It’s Modelo Time Foo

One thing I noticed this 4th of July: Mexican beers have taken over American ice coolers.

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Modelo Especial dethroned AB InBev-owned Bud Light as the U.S.’s top-selling beer last year. The Mexican beer had been gaining market share in the U.S. beer market for years, but the Bud Light boycott accelerated Modelo’s rise and put them over the top.

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Analysts say Modelo’s rise to #1 was inevitable.

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Modelo’s popularity reflects the growing cultural influence of Latino consumers in the U.S., even beyond Hispanic communities. From 2015 to 2022, the ratio of Modelo Especial drinkers has shifted from 80% Hispanic and 20% “general market” to close to 50-50.

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While the brand has won over the “general market,” Modelo’s core Hispanic customers are still of the utmost importance to them. Vox reported that 3 points of Modelo’s revenue algorithm just came from the growth of the Hispanic population in the U.S.

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As the country’s Hispanic population continues to grow, surpassing 65 million people in the U.S. as of 2022, so does Modelo’s influence over the “general market” and total sales.