Modelo beer has become a favorite among many beer drinkers in America. It recently overtook Bud Light as the top-selling beer brand. But the question of who actually owns this popular Mexican lager can be confusing.
In the United States, Constellation Brands owns the rights to import, market, and sell Modelo beer exclusively and perpetually. Outside the US, Anheuser-Busch InBev (AB InBev) owns the Grupo Modelo brewery that produces it.
This unusual ownership split happened in 2012 when AB InBev purchased Grupo Modelo. The U.S. Justice Department had concerns about competition, so they required AB InBev to sell the U.S. rights to Constellation Brands. This created the unique situation where the same parent company that owns Bud Light also owns Modelo globally, except in the American market.
Key Takeaways
- Constellation Brands owns Modelo beer rights in the United States while AB InBev owns the brand everywhere else in the world.
- The split ownership resulted from antitrust concerns when AB InBev purchased Grupo Modelo in 2012.
- Modelo has grown to become America’s top-selling beer brand despite this complex ownership structure.
History of Modelo
Modelo beer has a rich history spanning 100 years, evolving from a small Mexican brewery to a global brand. The company’s journey includes important ownership changes, international expansion, and adaptation to changing market conditions.
Founding and Early Years
Modelo was born in 1925 in Tacuba, Mexico, when the founders of Grupo Modelo set out to create a premium beer. They applied German brewing techniques to develop their first beer, drawing inspiration from internationally renowned German brewmasters.
The brewery’s founders had a clear vision – to make a “model” beer that would stand out in quality. This commitment to excellence helped establish Modelo’s reputation in its early days.
During these formative years, Modelo grew alongside other Mexican beers like Corona, as both were initially produced at the Mexico City brewery Cervecería Modelo. The company focused on quality and consistency, building a loyal customer base in Mexico.
Expansion and Growth
Throughout the mid-20th century, Modelo expanded its presence across Mexico and began looking beyond its borders. The company developed new products and acquired other breweries to strengthen its market position.
Modelo Especial became the flagship product, known for its distinctive taste and consistent quality. The brand gradually built recognition abroad, particularly in the United States, where it found success among consumers looking for authentic Mexican beer.
By the late 20th century, Grupo Modelo had become Mexico’s leading beer producer. The company invested in modern brewing facilities and distribution networks to support its growing operations.
Their marketing strategies emphasized Mexican heritage and craftsmanship, helping Modelo stand out in increasingly competitive international markets.
Recent Developments
In recent years, Modelo has experienced significant ownership changes. Outside the United States, Modelo is owned by Anheuser-Busch InBev, following a global acquisition. However, due to antitrust concerns, Constellation Brands owns the Modelo brand in the US.
This split ownership structure has created different growth strategies in different markets. Constellation Brands has heavily invested in Modelo’s US presence, making it one of the fastest-growing beer brands in America.
Modelo has expanded its product line beyond the original offerings. New varieties and limited editions appeal to changing consumer preferences.
The brand continues to emphasize its Mexican heritage and brewing traditions, while adapting to modern tastes and marketing approaches.
Ownership
Modelo beer has a complex ownership history that shifted dramatically over the past decade. The brand’s journey from Mexican brewery to global powerhouse involves corporate takeovers and regulatory interventions that reshaped the beer industry.
Grupo Modelo Era
Grupo Modelo began as a small brewery in Mexico in 1925 when Pablo Díez Fernández founded it after acquiring the Cervecería Modelo. The company grew steadily over decades, becoming Mexico’s leading beer producer.
By the 1990s, Grupo Modelo had established itself as a major player in the beer industry. The Corona brand became Mexico’s most famous beer export, while Modelo Especial gained popularity in both Mexican and international markets.
The company maintained majority Mexican ownership for most of its history, though Anheuser-Busch acquired a non-controlling stake in 1993. This partial ownership arrangement lasted until the major industry shakeup in the 2010s.
Acquisition by Anheuser-Busch InBev
In 2013, Anheuser-Busch InBev acquired Grupo Modelo in a deal worth approximately $20.1 billion. However, this acquisition faced regulatory hurdles in the United States. The U.S. Department of Justice had concerns about beer market competition.
To satisfy these concerns, AB InBev made a unique arrangement. While AB InBev owns Grupo Modelo globally, they were required to sell the U.S. rights to Modelo’s brands. Constellation Brands purchased these rights, gaining exclusive and perpetual license to import, market, and sell Modelo products in the United States.
This creates the unusual situation where Modelo and Bud Light have different owners in the U.S. market, despite having the same parent company globally. The arrangement has proven successful, as Modelo recently surpassed Bud Light as America’s top-selling beer.
Brand Portfolio
The Modelo brand features several popular beer varieties that cater to different tastes and occasions. Each product has unique characteristics that have helped establish Modelo as a leading beer choice.
Modelo Especial
Modelo Especial is the flagship beer of the brand, known for its crisp, refreshing taste. This pilsner-style lager comes in a distinctive gold-foil topped bottle that beer drinkers easily recognize.
Launched in 1925, it has grown to become one of the top-selling imported beers in the United States. The beer contains 4.4% alcohol by volume, making it a moderate-strength option for consumers.
Modelo Especial features a light, clean flavor profile with subtle hints of orange blossom and honey. Its balanced taste has helped it become the top-selling beer brand in America during certain periods, surpassing competitors like Bud Light.
Negra Modelo
Negra Modelo offers a richer experience as a Munich Dunkel-style lager with a distinctive dark amber color. First brewed in 1926, it provides a more robust alternative to Modelo Especial.
This medium-bodied beer features a caramel sweetness balanced with mild hop bitterness. Many fans appreciate its smooth, creamy texture and notes of caramel malt, nuts, and light chocolate.
Negra Modelo is often called a “craft beer in disguise” due to its complex flavor profile despite being produced on a large scale. At 5.4% alcohol by volume, it’s slightly stronger than Modelo Especial but still approachable for most beer drinkers.
Other Variants
Modelo has expanded its lineup to include several other popular variants. Modelo Chelada comes pre-mixed with tomato, salt, and lime flavors, following the traditional Mexican beer cocktail recipe.
Modelo Negra Especial combines elements of both flagship beers for those seeking a hybrid experience. The brand also offers Modelo Light as a lower-calorie alternative with 99 calories per serving.
Seasonal releases like Modelo Reserva and limited editions help keep the brand fresh and exciting. These special varieties often feature unique ingredients or brewing techniques.
Constellation Brands handles distribution of all Modelo variants in the United States, while Anheuser-Busch InBev manages the brand globally outside the US market.
Production and Distribution
Modelo beer’s production and distribution system span multiple countries with complex ownership structures that affect how the beer reaches customers worldwide. The brewing process and distribution channels vary depending on the region, primarily due to the split ownership between Anheuser-Busch InBev and Constellation Brands.
Brewing Facilities
Modelo beer is primarily produced in Mexico, where its original brewing facilities are located. The main brewery operates in Naucalpan, Mexico, which has been producing Modelo since its early days. This facility continues to craft the authentic Mexican lager under the oversight of Grupo Modelo.
Additional brewing facilities have been established in various locations to meet growing demand. Constellation Brands, which owns the rights to Modelo in the United States, has invested over $1.5 billion in Mexican brewing facilities to support U.S. distribution.
These modern facilities combine traditional brewing methods with advanced technology to maintain consistent quality. The brewing process still follows many of the original recipes and techniques that have made Modelo famous.
Global Distribution Networks
Modelo’s distribution system is divided by geography due to its unique ownership structure. In the United States, Constellation Brands handles all importing, marketing, and sales through an exclusive and perpetual license.
For international markets outside the U.S. and Mexico, Anheuser-Busch InBev manages distribution through their extensive global network. This three-way ownership division creates a complex but effective global reach.
The beer travels through carefully managed cold-chain distribution systems to preserve its quality. Modelo has established strong partnerships with local distributors in each market to ensure wide availability.
Recently, Modelo has expanded its distribution footprint, which helped it overtake Bud Light as America’s top-selling beer in certain periods, showing the effectiveness of its distribution strategy.
Marketing and Sponsorships
Modelo beer has built a strong brand identity through strategic marketing campaigns and key sponsorships. The brand focuses on themes of fighting spirit, hard work, and authenticity that resonate with consumers.
Modelo has invested heavily in sports partnerships, establishing over 70 sponsorship deals across various categories. These partnerships have been crucial to the brand’s explosive growth in the U.S. market.
Major Sports Sponsorships:
- UFC (Ultimate Fighting Championship)
- MLB (Major League Baseball)
- College football programs
- Boxing events
The beer brand’s marketing strategy emphasizes its Mexican heritage and premium quality. This approach has helped Modelo connect with both Hispanic consumers and the broader American market.
Their popular “Fighting Spirit” campaign highlights stories of determination and perseverance. These ads feature real people who have overcome challenges, reinforcing the brand’s authentic image.
Modelo’s marketing success has contributed significantly to making it America’s top-selling beer, surpassing Bud Light in recent years. This achievement marks an important milestone in the beer industry.
Digital marketing and social media presence also play important roles in Modelo’s strategy. The brand maintains active profiles across platforms to engage with younger consumers and build community.
Economic Impact
Modelo’s ownership has significant economic implications beyond just corporate profits, creating positive ripple effects on communities and individuals.
Contribution to Local Economies
Modelo beer, owned by Constellation Brands in the U.S., contributes substantially to local economies where it operates. The brand’s double-digit sales growth of 11% has generated increased tax revenue for municipalities hosting production facilities.
These facilities often become economic anchors in their communities, supporting auxiliary businesses like packaging suppliers, transportation services, and agricultural producers. Local farmers benefit from contracts to supply brewing ingredients.
The brand’s marketing initiatives, including sponsorships of cultural events and sports teams, inject additional funds into community activities. As Modelo has grown to become America’s most popular beer, its economic footprint has expanded proportionally.
Employment Opportunities
Modelo creates thousands of jobs across various skill levels and sectors. Production facilities employ workers ranging from entry-level positions to highly skilled brewing specialists and engineers.
The recent 12% sales increase for Modelo Especial has likely required additional staffing to meet growing demand. These brewing jobs typically offer competitive wages and benefits compared to other manufacturing sectors.
Beyond direct employment, Modelo supports jobs throughout its supply chain – from agricultural workers growing ingredients to logistics personnel handling distribution. Marketing, sales, and administrative positions further expand employment opportunities.
The company’s growth trajectory suggests continued job creation, particularly as Constellation Brands continues to invest in the Modelo brand to maintain its market leadership position.
Sustainability Efforts
Grupo Modelo has made significant strides in their sustainability journey. The company is currently focused on establishing a truly sustainable business. They also want to show their commitment to environmental responsibility.
One of their main goals involves packaging improvements. Grupo Modelo aims for 100% of its bottles to be returnable or primarily made from recycled materials. This initiative helps reduce waste and promotes a circular economy.
In a notable partnership, Grupo Modelo joined forces with WestRock and Grupo Gondi to eliminate plastic waste. They introduced the CanCollar® Eco Packaging, which has helped in eliminating over 100 tons of plastic waste. This change specifically targets the elimination of plastic rings in Mexico.
Key Sustainability Initiatives:
- Transitioning to returnable bottles
- Using recycled materials in packaging
- Eliminating plastic rings from packaging
- Reducing overall environmental impact
These efforts demonstrate how Grupo Modelo is taking practical steps toward sustainability. They’re not just talking about environmental responsibility—they’re taking action that makes a real difference.
Through these initiatives, Grupo Modelo is setting an example for other beer companies. Their commitment shows how businesses can work toward sustainability while maintaining product quality and customer satisfaction.
