How Modelo Used Data to Become America’s Top Beer | WSJ The Economics Of

Modelo Especial is now America's top-selling beer, dethroning the longstanding king, Anheuser-Busch InBev’s Bud Light. While Bud Light has recently been subject to a culture-war storm, Modelo’s stratospheric rise has been building for years and is a product of savvy marketing - and a 2013 antitrust lawsuit.
WSJ explains how the Mexican beer brand became the top selling beer in the U.S.
0:00 Top beer in the U.S.
0:49 What happened in 2012?
2:44 The next decade
4:42 The past six months
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#Modelo #Beer #WSJ

[@larsporsena9529]

Bro really kept beer prices down, what a hero

[@forgettablelisa]

Modello has definitely raised their own prices since then. I used to buy it all the time, still drink it but no longer as the "cheap" option. That falls to Montucky now lol.

[@BizzareCart]

It's still a good beer

[@larsporsena9529]

Everyone wants to talk about silly stuff but that antitrust lawyer is the reason you can drink decent beer on a budget.

[@matteframe]

the real question is, how on earth was a beer as terrible as Bud Light ever the biggest seller...

[@krazieecko]

It's called successful marketing to the tune of hundreds of millions of dollars per year

[@davidatovar]

Most of the Mexicans I've seen think bud is a import to them.

[@keiththoma2559]

In college Bud kegs were always the best value. If you were throwing a kegger you’d get Bud. I assume this is still the case today amongst college students and younger adults

[@wohoo245]

I think of bud light as beer you buy if you are in charge of buying ALL the beers

[@thebluefus]

Bud light had the best commercials.

[@arthurf7746]

Thank god for antitrust enforcement! Kudos to Mr. Baer!

[@andylawcc]

baer, beer? hum...

[@mulattovanguard]

I went to grab a cold drink last night. I had two choices 1) Bud light and 2) Modelo. I choose Modelo. Better taste 👍🏼

[@johnhorner5711]

I've liked Modelo for many, many years. It looks like others have caught up with me :). Nobody in this piece mentioned that it tastes much, much better than that watered down Bud Light %^&$.

[@matteframe]

marketers don't actually care about product quality...

[@JoshMarshain]

Yeah the difference in flavor had always left me confused as to why garbage Bud Light was so popular, had me questioning if there was just something I'm missing or if people just like bad beer

[@user-pe3tt7iu7g]

haha just commented this, it's good!

[@GangsterAssRick]

Corona Light is the only other beer that gives it competition in the taste department...its like regular Corona without the skunky aftertaste, it's freaking delicious.

[@user-pe3tt7iu7g]

@@GangsterAssRick that's just water

[@Sjalabais]

Funny how all this marketing wizardry gets explained, but how a yellow water like Bud Light ever made it so far in the first place, remains a mystery.

[@GMartin407]

Marketing wizardry. You said it yourself lol.

[@imjustsam1745]

It was always so terrible tasting it was hard to get buzzed. And the hangover from any Anheisur Busch product just feels like having been poisoned, hasn't been a good excuse to drink that swill since the 80s.

[@AndreaDoesYoga]

Modelo taking the crown from Bud Light, cheers! 🍻

[@ForcedMember]

It's interesting that they hardly mention taste as to why one would be more popular.

[@BizzareCart]

You're right

[@bigjigyeah]

It also, y'know, tastes better than Bud Light

[@colekarrh9114]

It's so interesting/funny how changing the spot of the beer because of human behavior increases sales

[@anthonyrivera6199]

It’s quite literally the job of somebody in most every retail outlet, floor plans and schematics (placement on shelf) are adjusted per specifications of however they believe people will gravitate towards.

[@incyphe]

It also helps that modelo tastes better than bud light....

[@linuxman7777]

I have been boycotting Bud Light for 7 years now. I also have been boycotting Modelo, as I don't drink alcohol at all.

[@jackkineke4638]

Fascinating

[@pasofino9583]

You a regular Rosa Parks.

[@ramiromagana6634]

😂

[@deedelta9263]

This is for you, champ: 🍪

[@GangsterAssRick]

Alright chill out there Cesar Chavez

[@boosteddaily1294]

Modelo didn't use Data to become America's top beer, BudLight did it for them LOL

[@posthocprior]

There was no mention of improving taste or lowering price. On price, using Google, a six pack of Bud Light is between $8-$11. A Modelo six pack is between $9-$11. Then, looking at other beer brands, I found almost all were also in this price range. This may be why there was so much algorithmic emphasis on how close the beer has to be the door handle and at average eye height at grocery stores.

[@Parisloverable]

competing on price alone makes things commodities, which I don't think beer in America ever is. This isn't vodka in russia for instance.

[@dampaul13]

"improving taste" What do you mean?

[@posthocprior]

@@dampaul13 The usual: any statistical test that shows an improvement from the control group, what Modelo currently sells, to the treatment group; a beer with better taste. Recursively do the test until a recipe is found with a better taste.

[@dampaul13]

@@posthocprior And what is this "statistical test?" Who is "the control group?" Who is the "the treatment group?" Are you saying that Modelo changed its recipe?

[@WodiesDad]

just got back from Belgium, a six pack of corona was $5.67. We overpay for everything here.

[@eddiemalvin]

I sure do miss the days when drinking beer wasn't a political statement.

[@CHMichael]

I sure miss the days when beer had a taste. ( I just can't do cans. ... so stopped drinking beer. )

[@Ohnothisisbad]

@@CHMichael then just don't buy mainline brands? This seems like a silly take to me. I buy great tasting beer all the time.

[@philawsonfur]

It pretty much shows that your colleague group at sometime in your life hardwired the only way to relax and bond (internally & externally) socially with the repeated behavior of consuming alcohol. Nothing more to it. Yet that says a lot. Not trying to condemn it though. To each their own. There are tradeoffs to every decision in life. This includes but is not limited to: Standard deviation towards desirable long term outcomes given an undefined variable set of circumstances.

[@eddiemalvin]

@@philawsonfur Thanks but I think you may have posted to the wrong thread. I don't see any comments about social drinking with colleagues to relax and bond. I'm not condemning your post though. It's just that deviation from the original topic and attempting to conduct multivariate analysis using limited datasets and incorrect assumptions could lead to long-term undesired outcomes and confusion. :-)

[@sebastiancheng3211]

what was the political statement even?

[@KingArthur13th]

5:00 So Modelo started appealing to a new audience without pissing off their original customer base. Interesting.

[@mycathasawhitetoe]

Modelo has always been my favorite followed by corona and blue moon. Bud light has always tasted like garbage to me

[@BizzareCart]

You have great taste in beer

[@jackkineke4638]

Thank You Mr. Baer for saving our beer.

[@user-pe3tt7iu7g]

modelo is genuinely better than what came before

[@BizzareCart]

I agree

[@rdg760jr2]

I'm a beer merchandiser and on our last meeting, Pacifico surpassed bud light on sales on the data charts 😂

[@northman8854]

Askren getting bonus views of him getting knocked out in videos completely unrelated to MMA now lol

[@psychedelicpsyhcosis]

The Modelo time foo movement also helped tremendously

[@Punishedgentile]

It was literally the “It’s Modelo Time” memes plus the pandemic making people not want to drink Corona

[@CoachellaAngel]

Modelo time foo is the best marketing they ever had

[@SunShine-ls1ul]

The best ever job of Marketing i have seen !!!!

[@csmarpuri]

Awesome video talking about real life example of how business strategies would position a company against the top in the industry, which my MBA degree speaks only theoretically

[@TTOS69]

Thats why our data is so important!

[@alphahoss1947]

IT’S TIME THAT THE CONSUMER’S WAKE UP & REALIZE THAT THEY HOLD THE POWER IN THEIR WALLET’S AND PURSES 👜 TO MAKE COMPANIES CHANGE 💸!

[@thanhavictus]

Ah yes, conservatives doing the cancel culture they hate so mhch

[@einundsiebenziger5488]

... consumers*, wallets* (plural, no apostrophe)

[@VMITV]

Enjoying a delicious cold modelo as I watch this video

[@JohnHausser]

Most underrated industrial 🍺 Wish I could still drink

[@FirstClass102]

If you had problems with alcohol In the past don’t watch these kind of videos! You are stronger than that

[@jlucas136]

Honestly Modelo just tatse better, im not a big beer drinker but every time i taste Modelo im like dayumm thats pretty good.

[@alooga555]

Bud Light will fade away like Bud Dry.

[@merrymerkin]

Budweiser gives me indigestion literally and figuratively

[@xxx_rotfd_xiii_xii3619]

im drinking my first modelo rn not a huge beer drinker but modelo is pretty smooth

[@GangsterAssRick]

It's wasn't data...it's a deliciously refreshing beer at an affordable price with amazing presentation that you can drink in the hood with the homies or at an upscale restaurant with your hyna...cheers to the new King of Beers 🍻 👑

[@eliasyitrix6305]

I think it's how it looks... It looks refreshing

[@gouravmisra2317]

Namaste sir good evening 🌆 watching from India 🎉🎉

[@Marc-uy7hp]

Great work DOJ Antitrust!

[@Jaimehellcat]

Gotta love the spin…

[@mimusic1853]

What spin? Numbers don’t lie

[@Jaimehellcat]

@@mimusic1853 oh, you’re 100% right, the numbers don’t lie. The spin is saying what caused Bud Light’s loss of first place to Modelo and loss of, what is it, 30 billion is due to their pricing…

[@thersten]

Moral of the story: for broad appeal you must be bland. Think backstreet boys. 👍

[@TheHyena-ru8bz]

Did that guy just steal one beer from a six pack lol 00:41

[@hurleypiano3953]

Cool acoustics

[@dyingearth]

For starter, their advertisement agency doesn't seem to hate their customers. That's a good start.

[@thanhavictus]

Bud light doesnt hate their customer base

[@dyingearth]

@@thanhavictus I said their advertisement agency.

[@Seth9809]

@@dyingearth Their advertisement agency doesn't hate their customer base either.

[@TesserId]

3:37 Product displayed to increase sales (marketing)

[@TheRadicalCentrist.1776]

and...and...and...and...and...Bud Light TOTALLY eff'd up.

[@Townsteppa]

Cheers 🍻😄💯drinking a 32 modelo watching this

[@rockystaatz521]

Currently it’s being ordered more than corona where I’m at but then most people prefer free soda

[@candideggplant1575]

I think a great deal of people overhyped the whole controversy but at the same time, they were out even before the "controversy" was a thing. Bud Light really isn't a good beer, there are so many better options for about the same price. Maybe cheap beer has an appeal, buy a 32 pack for like 18 bucks or something, but if you actually want to enjoy your beer instead of just tolerating it, you can find better options that don't taste like rice flavored, beer flavored, water.

[@ramon9386]

I remember many years ago before Modelo became mainstream. I could buy a sixer for $5.19 while others were more. Good 'ol days lol

[@thedeeprot]

🔥🔥🔥🔥🔥

[@electrikoptik]

Mr. Baer, what a Chad!

[@itypethetruthnobshere8975]

Bud light messed up

[@dantedeluca978]

It helps that Modelo is the best mass market Lager in the US

[@friedoysterskins2942]

I haven’t tried modello but Pabst blue ribbons is my go to choice

[@victormendoza8486]

Give it a try , it’s a great beer!😊

[@ApriliaRacer14]

Modelo is a great beer.

[@jessemathieu1594]

They are on a similar level of quality both are solid choices in terms of macro beers

[@friedoysterskins2942]

Just tried it, it was really smooth. Similar to PBR.

[@victormendoza8486]

we accept you, one of us one of us one of us@@friedoysterskins2942

[@JohnShawOhio]

It can't be because Bud disrespected their customer base?

[@Laker62282]

How did they disrespect anyone?

[@Seth9809]

What did Bud Light even do? They advertised with one person, one time, and suddenly customers were basically rioting. All Bud Light wanted, was to expand it's customer base.

[@MrTmenzo]

​@@Seth9809it wasn't because the trans person it was due to the lady that was in charge of marketing states in an interview that bud lights customer base is out of touch, fratty and wanted to shift to be an inclusive brand. So she pretty much disrespected their current customer base and was removed from the position.

[@einundsiebenziger5488]

@@Seth9809 ... its* customer base (it's = it is)

[@joshuad1716]

Not one mention of the “its modelo time fool” meme?

[@user-qr7ee2cp4y]

Thanks for supporting a beer for soccer fans.

[@vamseekotha]

WSJ is doing good in the digital age

[@2013TombRaider]

Bud light jumped on its own knees and ensured modelo becomes number one easily 😂😂

[@clivebroadhead4857]

The corporate approach and commodification of all foodstuffs to blame. What passes as cheese in the US is a prime example. Beer is a simple product but that presented to the mass market has been formed by a committee of chemists and accountants. The Modello products are simply closer to what beer can and should taste like and their ascendency appears to be a product of pricing ang distribution rather than a tweaking of the actual product or packaging.

[@manager4409]

when AB bought stella artois, they forced them to use cheaper ingredients and I noticed a subtle change in how it tastes so I don't buy stella anymore either. they do this with all the smaller beers they buy.

[@rd9102]

Bud Light failed at marketing 101...and here we are.

[@Subaru2_1]

revisit by chance this video, now what is going on with Bud light CNBC?

[@ClassyNasty]

Americans Said “It’s Modelo Time Foo!” 🤣😂🤣

[@Lilmonke_586]

It’s Modelo time foo!

[@GoldSpot-pf1yb]

This data is silly. People search a freezer for their favourite beer. Makes no difference if it’s near the handle or deep inside.

[@KhaosAtom]

Not all heroes wear capes.

[@justayoutuber1906]

But a lot of trans men do.... Transylvania of course.

[@billypilgrim1]

they drink Modelo

[@charlesbarkely3021]

Step 1: let bud light shoot themselves in the foot Step 2: become the number 1 beer Has nothing to do with data

[@AyeBeeG]

It was trending beforehand. Now it’s taking full storm.

[@jeffreywillstewart]

Using the iconic "the Good, the Bad , & the Ugly" soundtrack didn't hurt either. Like subliminally getting an Eastwood endorsement! Lol

[@Tiger_Woo_dds]

Didn't CNBC cover part of this a month ago?

[@princememphis7726]

Jesus that flying knee was brutal

[@JLiznuts]

Modelo:Hey BUD want to see how to be the top dawg..? Hold my beer

[@maemilev]

Never drank modelo before in Asia.

[@jdrancho1864]

In the midst of all that jubilation, can we spare a thought for Anchor Steam??

[@basedpatriotLT]

No way, you can sell more beers if you put them in the fridge. Who would have thought :) Ps: i did not get the idea why specifically imported beers are 60% being consumed within 6 hours if purchase. How is it different from local beer.

[@name10books-]

Nah, what catch my eye first time , it was the bottle design. Then the taste.

[@omarperezrodriguez1827]

Good job anti-trust department

[@RealYoutube33]

Yeah say that to Ticketmaster

[@JoeSchmo51]

WSJ forgot to mention the Head Marketing Officer of Bud Light talking down to her customers and "fratty image" while even on the 4th of July, their Twitter/X feed never mentioned anything about 4th but only to have a bud light on that day.

[@drmode]

I only drink beer when in Europe.

[@jamess5415]

Not to mention it tastes better as well

[@SorminaESar]

Beer's usually minimize of alcohol, but of course it's called alcohol, I've no alcohol at all, it's so bad for the body health. Thank you

[@johnschneider4160]

Go back to sleep.

[@johnschneider4160]

Go back to sleep!

[@einundsiebenziger5488]

In what language does your weird sequence of words make any sense?

[@Jason.W.]

Let’s get this guy over in Canada for grocery chain oligopolies.

[@RealYoutube33]

Lol Canada politics and law. Good luck.

[@rkevic]

They didn’t mentioned international sells it will remain a mystery

[@GorVala]

Modelo has been better than domestic bears for loooong time ask our Hispanic cerveza drinkers 😊

[@johngalt3940]

I love modelo but as an Canadian buying it means supporting anbev

[@pugcopter]

Ofcourse Modelo ads are doing well. Who doesn’t want to picture themselves in a spaghetti western for 30 seconds?

[@krazieecko]

I'm sure it had nothing to do with bud light shooting themselves in the foot

[@andrewehyang]

Ben Askren catching strays even from the Wall Street Journal

[@alanm8400]

Corona with lime 👑

[@michaelbarrow...antiguaand9446]

#ONPASSIVE Internet solutions. .

[@IndustrialMilitia]

Modelo is a far better beer than Bud Light.

[@jpk8529]

this just feels like one mexican beer (corona) repackaged and remarketed as another since us consumers have such short attention spans

[@Presidenttrump11]

It’s cool

[@user-ln8hp4vt5z]

How Anhuiser Bush chased their Customer’s away hahahaha lol 😂.

[@ratonautonomo8963]

I've never tried Modelo "Espacial" is it good? 😉

[@frankmorris4790]

Now here's a thing. Modelo is the "Cowboy beer" of Mexico and has been for a couple decades anyway. Our so called cowboy beer is like makin' love in a canoe. All Modelo needs to do is to keep makin' their lovely suds!

[@trezenx]

wow they really advised to put the beer in the refrigerator? genius.

[@frevazz3364]

It’s not that simple, they need to convince wholesalers and retailers to carry more on the shelf, that’s not as easy as just looking at data.

[@svg03]

As an European seeing a guy raging with an automatic gun on to beer cans is crazy 😂

[@3DJapan]

Top beer? I've never even had it.

[@sergiobowers6930]

Modelo tastes better, they’ve simply never advertised to the capacity of Bud Light. If you asked me, consumers are ditching beer for pre made cocktails, that’s the new sub-sector in alcohol.