One of the most well-known brands in the United States is Bud Light, which is produced by renowned brewing corporation Anheuser-Busch. However, there has been some uncertainty as to whether Anheuser-Busch is the owner of Modelo, a well-known beer brand in Mexico.
Modelo is not owned by Anheuser-Busch, according to recent claims. In fact, Anheuser-Busch InBev, the parent company of Bud Light, signed a deal in 2012 to purchase all of Grupo Modelo’s outstanding shares, which includes the Modelo beer brand. The U.S., however, challenged the agreement.
The Department of Justice argued that Anheuser-Busch would have too much control over the U.S. beer market as a result of the transaction. As a result, Anheuser-Busch was compelled to sell Constellation Brands, a beverage firm with headquarters in New York, the privilege to market Modelo in the US, in 2013.
Despite the reality that Anheuser-Busch does not control Modelo, there are still a lot of myths surrounding the two businesses’ affiliation. Modelo is thought to be held by the same parent business by some people, whereas Anheuser-Busch purportedly still owns the company. It’s crucial to remember that while Anheuser-Busch is a division of Anheuser-Busch InBev, which also owns Stella Artois and Corona, Modelo is owned by Grupo Modelo, a division of AB InBev currently.
Anheuser-Busch and Modelo: A Brief History
Anheuser-Busch, the American brewing company, and Grupo Modelo, the Mexican brewing company, have a long history of partnership and rivalry. The two companies first joined forces in 1993, when Anheuser-Busch acquired a 50% stake in Grupo Modelo. This partnership allowed Anheuser-Busch to distribute Modelo’s beer brands, including Corona, in the United States.
However, the partnership was not without its challenges. In 2012, Anheuser-Busch announced its intention to acquire the remaining 50% stake in Grupo Modelo.
The move was met with resistance from the U.S. Department of Justice, which argued that the acquisition would give Anheuser-Busch too much control over the U.S. beer market. As a result, Anheuser-Busch and Grupo Modelo agreed to a settlement that required the divestiture of Modelo’s U.S. business, including its licenses and brewery interests, to Constellation Brands.
Despite this setback, Anheuser-Busch and Grupo Modelo continued to maintain a relationship. In 2013, Anheuser-Busch completed its acquisition of Grupo Modelo for $20.1 billion. The acquisition allowed Anheuser-Busch to expand its presence in Mexico and gain control of Modelo’s beer brands, including Corona, Pacifico, and Modelo Especial.
Today, Anheuser-Busch and Modelo continue to operate as separate entities under the umbrella of Anheuser-Busch InBev, the world’s largest brewing company. Anheuser-Busch InBev is headquartered in Belgium and has operations in over 50 countries. The company’s portfolio includes over 500 beer brands, including Budweiser, Stella Artois, and Beck’s.
Ownership and Controversies
Anheuser-Busch InBev, the world’s largest brewer, has a long history of acquiring other beer companies. In 2013, they acquired Grupo Modelo, the Mexican company that produces the popular Modelo beer brand. However, the acquisition was not without controversy.
The U.S. Department of Justice initially filed an antitrust lawsuit to block the acquisition, arguing that it would give Anheuser-Busch InBev too much control over the U.S. beer market. After a settlement was reached, the acquisition was allowed to proceed.
Today, Modelo is one of the best-selling beer brands in the U.S., but it is not owned by Anheuser-Busch InBev. Instead, it is owned by Constellation Brands, a New York-based beverage conglomerate.
Despite the settlement, there have been ongoing controversies surrounding the acquisition. In 2021, Anheuser-Busch InBev sued Constellation Brands, accusing them of breaching their agreement by exporting Modelo beer to unauthorized countries.
Key Brands and Their Performance
Anheuser-Busch is one of the largest beer companies in the world, with a portfolio of well-known brands.
In this section, we will take a closer look at some of their key brands and their performance in the market.
Bud Light and Budweiser
Bud Light and Budweiser are two of Anheuser-Busch’s most iconic brands. Bud Light is a light beer that has been the best-selling beer in the United States for many years. Budweiser, on the other hand, is a full-bodied lager that has been a favorite of Americans since the late 1800s.
Despite their popularity, both brands have seen a decline in sales in recent years. In 2020, Bud Light’s dollar sales dropped by 2.9%, while Budweiser’s dollar sales dropped by 13.4%. However, both brands still hold a significant market share in the United States.
Corona and Modelo Especial
Corona and Modelo Especial are two of Anheuser-Busch’s most popular Mexican beer brands. Corona is a light, refreshing beer that is often served with a wedge of lime. Modelo Especial, on the other hand, is a full-flavored lager that is often paired with Mexican food.
Both brands have seen strong sales in recent years. In 2020, Corona’s dollar sales increased by 7.1%, while Modelo Especial’s dollar sales increased by 16.6%. These brands have also benefited from the growing popularity of Mexican beers in the United States.
Stella Artois and Michelob Ultra
Stella Artois and Michelob Ultra are two of Anheuser-Busch’s premium beer brands. Stella Artois is a Belgian pilsner that is known for its distinctive chalice glass. Michelob Ultra is a low-carb, low-calorie beer that is marketed towards health-conscious consumers.
Both brands have seen strong sales in recent years. In 2020, Stella Artois’ dollar sales increased by 7.5%, while Michelob Ultra’s dollar sales increased by 21.1%. These brands have also benefited from the growing trend toward premium and healthier beers.
Competitors in the Beer Market
In the highly competitive beer market, Anheuser-Busch faces stiff competition from several other major players. Miller Lite and Coors Light, both owned by Molson Coors, are two of the most popular beers in the United States. Heineken, a Dutch beer company, is also a major player in the global beer market.
However, in recent years, Mexican beers have become increasingly popular in the United States, posing a challenge to traditional American beer brands. One of the biggest players in this market is Modelo Especial, owned by Constellation Brands. In 2023, Modelo Especial surpassed Bud Light as the most-sold beer in the United States, according to a report by USA Today.
Other popular Mexican beers include Corona, owned by Anheuser-Busch InBev, and Tecate, owned by Heineken. These brands have gained popularity in part due to their association with Mexican culture and the growing Hispanic population in the United States.
Despite the competition, Anheuser-Busch remains a major player in the beer market, with a wide range of popular brands including Budweiser, Michelob Ultra, and Stella Artois. The company also continues to innovate and expand its offerings, such as with its recent launch of Bud Light Seltzer.
Anheuser-Busch in Latin America
Anheuser-Busch InBev (AB InBev) is a multinational beverage and brewing company headquartered in Belgium. The company owns a wide range of beer brands, including Budweiser, Corona, Stella Artois, and Beck’s. AB InBev is also the parent company of Grupo Modelo, a Mexican brewery that produces popular beer brands such as Corona, Pacifico, and Modelo.
Grupo Modelo was founded in 1925 and has since become one of the largest beer producers in Mexico. In 2013, AB InBev acquired Grupo Modelo for $20.1 billion, gaining control of the company’s operations in Mexico and the United States. As a result of the acquisition, AB InBev now owns the rights to distribute and market Modelo beer in the United States.
In Latin America, AB InBev operates through its subsidiary Ambev, which is based in Brazil. Ambev is the largest brewery in Latin America and produces a wide range of beer brands, including Brahma, Skol, and Antarctica. The company operates in over 15 countries across the region, including Mexico, Argentina, Colombia, and Peru.
In Mexico, AB InBev’s operations are primarily focused on the production and distribution of beer through its subsidiary Grupo Modelo. The company operates 7 breweries across Mexico and produces a wide range of beer brands, including Corona, Pacifico, and Modelo. In addition to its beer production operations, AB InBev also operates a number of retail outlets across Mexico, including convenience stores and supermarkets.