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Modelo: Who Owns It?

Posted on Oct 19, 2024
Modelo: Who Owns It?

Modelo beer is one of the most recognized beer brands globally, known for its crisp taste and Mexican heritage. As a prominent Modelo beer owner, Anheuser-Busch InBev has helped shape the brand's success. While many beer enthusiasts enjoy Modelo, fewer people know about its complex ownership structure involving industry giants Anheuser-Busch InBev and Constellation Brands. This article dives into who really owns Modelo, how the brand came to be, and the strategic acquisitions that have shaped its current position in the global market.

Anheuser-Busch InBev (AB InBev)

Anheuser-Busch InBev (AB InBev), formed in 2008 after InBev acquired Anheuser-Busch, is the owner of Grupo Modelo ("Modelo"), providing a clear answer to the question: who owns Modelo beer? Led by CEO Michel Doukeris, AB InBev has an impressive portfolio of beer brands including Budweiser, Bud Light, Busch, and, of course, Modelo.

In 2013, AB InBev finalized its acquisition of Grupo Modelo by buying the remaining 50% stake in Crown Importers for $20.1 billion. However, to comply with U.S. antitrust laws and maintain fair competition in the American beer market, AB InBev had to divest Grupo Modelo’s U.S. operations. The rights to distribute Grupo Modelo's brands in the United States were sold to Constellation Brands, making Constellation the Modelo parent company for U.S. distribution.

Key Highlights

  • Anheuser-Busch InBev owns the global business of Grupo Modelo.
  • Constellation Brands manages Grupo Modelo's brands, including Corona and Modelo Especial, in the United States.
  • Modelo's product lineup includes well-known beers such as Corona, Modelo Especial, Pacífico, Victoria, and Estrella Jalisco.

Modelo beer originated in Tacuba, Mexico, in 1925, when Grupo Modelo aimed to produce a high-quality lager inspired by traditional German brewing methods. Grupo Modelo makes Modelo beer using these time-tested techniques. Their flagship product, Modelo Especial, is a 4.4% ABV pilsner-style lager that gained significant popularity. This success was driven by the expertise of Casa Modelo, Grupo Modelo’s parent company at the time. Corona, the brand’s global bestseller, and Modelo Especial are among the most recognized Mexican beers worldwide. By 2014, Modelo Especial had already sold 22.9 million cases in the U.S., becoming the second-highest-selling imported beer.

In a major milestone, Modelo Especial surpassed Bud Light in U.S. retail revenue for the month ending June 3, 2023, making it the most popular beer in grocery, convenience, and liquor stores, according to Nielsen statistics analyzed by Bump Williams Consulting. With 8.4% of beer sales in these channels, Modelo secured its place as the top choice for American consumers.

Who Owns Modelo?

Modelo is brewed by Grupo Modelo, which is a subsidiary of Anheuser-Busch InBev, a Belgian multinational drink and brewing company, making AB InBev the Modelo owner globally.

Anheuser-Busch InBev (AB InBev)

AB InBev’s history goes back to 1852, when Anheuser-Busch was founded by Adolphus Busch in St. Louis, Missouri. Originally named Anheuser & Co., the company became one of the largest brewing corporations in the United States. In 2004, a turning point came when Brazilian AmBev and Belgian Interbrew merged to form InBev, setting the stage for the acquisition of Anheuser-Busch in 2008, and giving birth to AB InBev—the world’s largest brewing company headquartered in Leuven, Belgium.

AB InBev has since grown its footprint through strategic mergers and acquisitions, becoming a dominant player in the global beer market. With a diverse portfolio of renowned brands, AB InBev has positioned itself as a leader in both quality and market share.

Ownership of Anheuser-Busch InBev

Key shareholders include Brazil's Jorge Paulo Lemann, Carlos Alberto Sicupira, and Marcel Telles through their private equity firm 3G Capital, which controls 22.7% of AB InBev. Additionally, Belgian families Vandamme, de Mévius, and de Spoelberch collectively owned about 28.6% of the company as of 2015. After SABMiller's acquisition in 2016, a significant restructuring took place under the leadership of Michel Doukeris, who took over as CEO in July 2021.

Anheuser-Busch InBev and Grupo Modelo

The acquisition of Grupo Modelo in 2013 for $20.1 billion was a pivotal moment for AB InBev, expanding their influence in the Latin American beer market and answering questions like 'does Anheuser-Busch own Modelo.' By acquiring approximately 95% of Grupo Modelo's shares, AB InBev fully incorporated the Mexican brewer into its portfolio. However, to address U.S. antitrust concerns, AB InBev agreed to sell the rights to distribute Modelo brands in the United States to Constellation Brands. This agreement allowed Constellation to produce and sell Corona, Modelo Especial, and other Grupo Modelo brands for the U.S. market.

Grupo Modelo in the United States

After the acquisition, Grupo Modelo's U.S. operations were spun off to Constellation Brands as part of an antitrust settlement with the U.S. Department of Justice. Constellation now brews Corona, Modelo Especial, and other Grupo Modelo products in its own Mexican breweries, including facilities in Nava, Coahuila, and Ciudad Obregón, Sonora, giving Constellation the rights to 'who owns Corona' in the U.S. The company is also constructing a new brewery in Veracruz to meet growing U.S. demand.

Anheuser-Busch InBev's Purchase of SABMiller

In 2016, AB InBev took over SABMiller in one of the biggest deals in brewing history, valued at approximately $100 billion, further solidifying its status as the Modelo parent company. This merger brought together major brands like Peroni, Grolsch, Budweiser, and Modelo under a single umbrella. The acquisition enabled AB InBev to strengthen its market position globally and streamline operational efficiencies by combining two of the largest players in the industry.

The Bottom Line

Modelo beer is owned by Anheuser-Busch InBev, one of the largest and most influential players in the beer industry, providing a clear answer to 'who owns Modelo beer.' Despite ownership by AB InBev, Modelo’s distribution in the United States is managed by Constellation Brands due to antitrust rulings, giving it a unique dual ownership structure for the U.S. market. AB InBev’s continued expansion through acquisitions like SABMiller has helped position it as a global leader in brewing. The future looks promising for those involved in the beer industry under the leadership of AB InBev, as it continues to acquire and grow iconic brands around the world.

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