Modelo is entering new categories and leaning on big flavors as the 100-year-old beer brand looks to introduce itself to the new legal drinking age consumer.
After losing the title as No. 1 top selling beer brand by volume to Michelob Ultra last year, Modelo is aggressively courting young drinkers with a slate of new innovation that highlights the brand's heritage. In January, Modelo introduced its first nonalcoholic offering, a booze free version of its Limón y Sal Chelada, the classic Mexican beer cocktail. A few months later it introduced new cheladas at the other end of the spectrum, with high-alcohol varieties of more than 8% ABV.
Modelo still maintains its position as the top beer brand in terms of dollar sales, according to Circana data cited by the company. As the brand considers further innovation and future growth, it’s leaning into its connection to Mexican culture and taking advantage of marketing opportunities like the FIFA World Cup.
It's also on the hunt for new opportunities to expand its portfolio. Logan Jensen, vice president of brand marketing, said Modelo is “no longer defined by a single segment.”
In an emailed Q&A with Food Dive, Jensen talks about Modelo's approach to innovation and how products like its high-alcohol cheladas appeal to the next generation of legal drinking consumers.
Editor’s note: This interview has been edited for clarity and brevity.
FOOD DIVE: How do Modelo's new Cheladas reflect the company's approach to innovation?
JENSEN: As the leading RTD Chelada for seven consecutive years, we've grown the Modelo Chelada portfolio to approximately 70% dollar share in the Chelada segment, driving all category growth.
With the new Modelo Chelada Suprema, we're leaning into higher ABV offerings Gen Z and millennials are increasingly seeking, while Modelo Chelada Limón y Sal Non-Alcoholic, which launched in January, shows how we’re giving fans the option to reduce alcohol consumption without compromising on flavor and quality.
Why make the Chelada the company's first nonalcoholic offering in the U.S.? Why not start with a nonalcoholic version of the namesake Modelo?
Research shows that while the nonalcoholic space is quickly growing, the demand for flavor options is growing just as fast. Modelo Chelada Limón y Sal Non-Alcoholic fills a gap in the growing segment by bringing an authentic and differentiated offering to those seeking more flavorful non-alcoholic options.
Modelo Chelada has been the leading RTD Chelada for seven straight calendar years, and Limón y Sal has been the fan favorite for the past two years running, so it was the obvious pick for our first non‑alcoholic release.
How is Modelo looking to attract younger, drinking age consumers?
Gen Z is more selective with alcoholic beverages and wants flavor-led experiences, which is why we built a portfolio with offerings for all different occasions that you can count on to deliver bold flavor.
Modelo Chelada Suprema delivers the higher-proof experience that legal drinking age Gen Z and millennial drinkers are seeking. More than half of new flavor innovation is now coming in above 5% ABV, signaling clear consumer demand for higher-proof drinks that don’t compromise on taste. Our Modelo Chelada Suprema Mangonada and Tropical variants provide exactly that.
Our broader strategy is also focused on cultural relevance. For example, Modelo is the official sponsor of the College Football Playoffs. We’re heavily investing in sports and showing up in spaces where younger consumers actually are.
As other beer competitors diversify into RTDs and nonalcoholic, how can Modelo stand out?
We're not just following trends. We're anchored in genuine Mexican heritage and quality, which resonates across our core Hispanic consumer base and beyond. We understand that today's consumers don’t want to compromise. They want bold flavor and moderation. Authenticity and innovation. Heritage and contemporary relevance. We’re proud to have developed a portfolio that balances these expectations on multiple fronts.
Our last two Chelada portfolio expansions, Modelo Chelada Non-Alcoholic and Modelo Chelada Suprema, demonstrate how we’re tapping into new trending drinking occasions and consumer preferences. These shifts keep the Modelo brand top of mind for consumers, no matter their preferences, helping to maintain our position as #1 beer in the U.S. by dollar sales.
We're continuing to build on that position through authentic innovation, portfolio expansion and cultural relevance.
