Americans Are Giving Up on Lager, but Michelob Ultra Is on Fire

(Bloomberg) -- Anheuser-Busch InBev NV might advertise Budweiser as the King of Beers, but the new jewel in the crown is Michelob Ultra.

In the U.S., where mass-market lagers are losing out to craft pale ales and stouts, demand is surging for Michelob Ultra, which positions itself as a low-carb, low-calorie beer for health-minded drinkers seeking options that tie in with their exercise routines. A bottle contains less than half the carbohydrates and fewer calories than Bud Light.

“If you work out and go out, no need to compromise, because it’s a great-tasting beer with less carbs, less calories, less alcohol for you to be able to have that active lifestyle,” AB InBev Chief Executive Officer Carlos Brito said in an interview with Bloomberg TV’s Jason Kelly and Carol Massar.

Michelob Ultra has gained the most market share of any new brew in the U.S. for the past four years. It’s so popular that it now accounts for 10% of the company’s business in the U.S., Brito said.

The success of Michelob Ultra comes as other parts of AB InBev’s business are on the back foot, with investors wiping $20 billion off the company’s value last month after the brewer reported third-quarter earnings that missed estimates.

To contact the reporter on this story: Thomas Buckley in London at tbuckley25@bloomberg.net

To contact the editors responsible for this story: Eric Pfanner at epfanner1@bloomberg.net, John Lauerman

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