Historic AB InBev Brand is Now the Best-Selling Beer in the U.S. So What?

Michelob Ultra, a "superior light beer" introduced in 2002 by Anheuser-Busch, now holds the top spot in annual sales in the U.S. beer market. And this is true for both mass retail and the hospitality industry (horeca). Beyond the celebratory title, what does this pole position tell us about consumer preferences?

What was just announced: The Michelob Ultra beer brand secured the first place in sales across all distribution channels in the United States over the last 52 weeks, highlighted the market data expert platform Circana. This leading position is also confirmed over the same period in bars and restaurants, confirmed the other business intelligence specialist firm, Nielsen.

Why it's inherently interesting: This commercial consecration comes more than two decades after the brand's launch, which now "stands out as a growth leader in the industry, and it shows no signs of slowing down," comments Scott Scanlon, Executive VP of Category Insights at Circana.

Over the past five years, Michelob Ultra has recorded 15% growth and gained more

than 2% market share. AB InBev's latest semi-annual performance in this key US

market owes a lot to Michelob Ultra, which led the pack in terms of volume share

gains in the sector. A notable dynamic also replicated in Canada and Mexico.

What’s behind this momentum: The brand appears to be reaping the rewards of a consistent marketing strategy, says the Chief Commercial Officer of AB InBev’s U.S. division – a game plan built around a clear positioning from the start: lightness, enjoyment, and an active lifestyle.

“For over 20 years, Michelob Ultra has connected with its fans in the moments they love, investing, learning, and showing up as the official beer of the most iconic sports events in the U.S.,” said Kyle Norrington.

As the official sponsor of the upcoming FIFA World Cup, partly hosted in the U.S., and of the 2028 Olympic Games in Los Angeles, the brand sees “huge opportunities ahead” that will demonstrate “the resilience of the beer category in the U.S.”

The bigger picture: Michelob Ultra’s rise aligns with a broader trend, moderate beer consumption increasingly focused on wellness. With its “superior light beer,” the brewing giant not only focused on the premium selection of grains and touted the virtues of a prolonged brewing process. It also championed "responsible quenching": low calories (95), low carbohydrate content (2.6g), absence of artificial flavors or colors.

It should be acknowledged that Anheuser-Busch aimed for the pioneer's advantage by playing the card of a product better adapted to consumers' balanced choices. A strategy that would ultimately pay off as these consumption preferences are now gaining importance. In any case, AB InBev, which committed to a $300 million investment plan this year in American facilities and labor, unveiled a project on September 25th to modernize equipment at its seventy-year-old brewery in Los Angeles to stimulate increased production of…

Michelob Ultra.

What you might have missed: Alcohol consumption has been declining for decades in developed countries – and that trend is expected to continue. According to New Consumer, Americans are increasingly health-conscious, and a growing majority report being ready to make significant sacrifices, including quitting alcohol entirely.

So far, this shift has led the spirits industry to focus on premiumization, lower-ABV and non-alcoholic alternatives, whether via in-house brands or acquisitions, says DigitalFoodLab. “Only the latter has worked reasonably well – but not enough to offset the volume declines of recent years. Only much more disruptive innovation will allow market leaders to survive in the decades to come.”

The subtext: The Michelob Ultra case illustrates the importance of brand innovation, ideally over the long term. The brand’s commercial success is not only a product performance indicator; it also represents a kind of public redemption for AB InBev.

After its flagship Bud Light faced public backlash in 2023 for controversial marketing, losing its decades-long sales crown, seeing another historic brand take the top spot highlights the strength of AB InBev’s diversified portfolio (500+ brands).

With a quieter marketing presence than other AB InBev labels, Michelob Ultra appears to have built its rise through discreet and steady innovation. Of note: its non-alcoholic version, Michelob Ultra Zero, has become a segment leader within just nine months.

In its Q2 earnings presentation, AB InBev celebrated being the # 1 non-alcoholic beer leader in the U.S. market. “Our portfolio is growing volumes between 20% and 30%, and we’re leading the sector in innovation – with Michelob Ultra Zero and Busch Light Apple being the two most successful new product launches in the industry so far this year.”