The alcohol industry has, inarguably, taken a hit in recent years. Gone are the days of glamorizing drinking. Today’s consumer wants something different, and the beer industry is suffering – except for one standout brand: Michelob Ultra.
Recently, Michelob Ultra surpassed Bud Light as America’s best-selling draft beer. Its sales grew 3.1% as other well-known beer brands declined, as reported by The Wall Street Journal.
How has Michelob Ultra become a standout in an otherwise languishing beer industry?
How Has Michelob Ultra Risen to the Top?
The beer brand’s messaging, which has remained consistent over the years, is resonating with today’s consumer.
According to Alon Chen, CEO of Tastewise, Michelob Ultra is selling something beyond beer it’s selling a lifestyle. By tapping into today’s wellness-driven mindset with appealing factors such as being a light and low-calorie beverage, it has made itself extremely appealing to health-conscious consumers.
Ella Parlor, founding partner at EP Consulting, said wellness now drives alcohol purchasing behavior. Ultra wins, Parlor explained, because it delivers the following:
- Functional value, low-cal, low carb, easy recovery
- Emotional alignment, wellness, balance, identity
- Lifestyle-first positioning, targeting the “fit but fun” crowd, weekend athletes, social gym goers, and wellness seekers
- Strategic partnerships, from Team USA and the Olympics to the Michelob Ultra Arena and Super Bowl campaigns, the brand owns the cultural space between fitness and fun
Michelob Ultra has also “nailed its positioning in new consumption occasions like a post-workout drink or a Sunday night wind-down, which traditional beers rarely touch. Add in smart flavor choices like citrus and light malt, and we’ve got a beer that feels lighter, fresher, and more in tune with modern habits,” Chen told The Food Institute.
Lessons Learned for Rival Beer Brands
It’s time for most beer brands to evolve, Chen said. The old-school, rugged guy with a cold one image isn’t going to cut it with today’s consumers.
In 2025, it’s all about choosing drinks that feel healthy, clean and functional. Added benefits like electrolytes, CBD, or adaptogens also go a long way with modern consumers.
Beer manufacturers also need to rethink how today’s consumer is drinking.
“Brands have to show up in moments that matter i.e., after yoga, during a quiet night in, even post-gym. Beer needs to be part of consumers’ lifestyle, not just their weekend,” Chen said.
“To grow and stay relevant, beer needs to look, feel, and function like it belongs in a wellness-focused lifestyle.”
The future of beer isn’t more flavors, Parlor said, it’s alignment with how people live.
Parlor added that distributors should be viewed as true strategic partners and not just middlemen. Michelob Ultra has an edge when it comes to its appealing packaging, premium margin, and retail versatility, she added.
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