There are four “winds of change” impacting consumers’ bev-alc purchasing decisions, and Anheuser-Busch InBev (A-B) believes it has the brands to speak to all four of those trends, according to A-B U.S. chief commercial officer Kyle Norrington.
Norrington spoke last month at Beer Marketer’s Insights’ annual fall seminar in New York City.
The first trend is premiumization, a space that A-B’s Michelob Ultra has been playing in for more than two decades, according to Norrington.
“Michelob Ultra is one of those brands, go back to 2002, that broke the mold of what a premium light beer could do, a superior light beer could do,” Norrington said. “And it has continued to grow along that path.”
Michelob is A-B’s third largest brand family, and Michelob Ultra is its No. 1 beer brand by dollar sales in Circana-tracked off-premise channels year-to-date (YTD), through November 3. The brand has also maintained growth, increasing dollar sales +4.2% and volume, measured in case sales, +3.8% YTD, while A-B’s next two largest brands have been in decline: No. 2 Bud Light dollar sales -12.9%, volume -14.3%; No. 3 Budweiser dollar sales -6.5%, volume -8.3%.
Other A-B brands speaking to premiumization include vodka-based hard seltzer brand Nütrl and craft beer brand Kona Big Wave, Norrington said.
The second trend A-B is paying attention to is a “balanced lifestyle,” a space Michelob Ultra is again already speaking to, Norrington said. A-B is expanding that with the addition of Michelob Ultra Zero in 2025. The non-alcoholic (NA) extension will have the “same ultra smooth taste” as Michelob Ultra, but with 29 calories, adding “a new dimension to the non-alcoholic beer category,” Norrington said.
“We are a leader in non-alcoholic beer,” he added. “So the onus is on us to help grow the category, [and] to continue to lead the category.”
The third trend is flavor and variety, which has created endless choices on the shelf for consumers.
“We all have plenty of brands, but it’s crazy to think that flavor for consumers, it’s almost personalized,” Norrington said. “Consumers are really looking to flavor to make their choices and that’s really created a lot of proliferation.”
He added that A-B has brands that speak to flavor not just in the beyond beer space, but also in traditional beer, including the Chelada extensions of its Bud Light brand.
“Consumers are looking for savory, they’re looking for sweet, and we see a big part of our portfolio taking advantage of that sort of evolution of flavors,” Norrington said.
The final shift is the “value equation” that consumers are making when at the store. A-B’s Busch Light and Cutwater are passing the value test, Norrington said.
“Any given year you see people trading up, trading down, but at the end of the day, consumers are looking for utility from brands,” he said.
“A good beer at a good price for a consumer is a great deal,” he added. “And Busch Light has been a great deal for many consumers.”
Busch Light is A-B’s fourth largest brand in Circana-tracked off-premise channels. It has also posted the largest growth YTD of any of A-B’s top 15 brands, with dollar sales increasing +7.6% and volume +4.9%. Additionally, the brand is the No. 1 beer brand in 10 U.S. states, Norrington said.
“Not the No. 1 value brand, not the No. 1 lager – the No. 1 beer brand in these markets,” he said.
In its strongest markets, Busch Light has 15-20% share of the beer market, Norrington said.
“One in five beers in these markets is a Busch Light,” he said. “Not Busch family, Busch Light.”
A-B to Continue to Increase Investment in Brands
A-B has increased its spend in live sports media +80% since 2022, and increased its overall media spend by more than +90% in the past two years. Those investments will continue and grow in 2025, Norrington said.
A-B’s media spend will include TV adverts, but even more will be dedicated to partnerships, which can be more impactful with today’s consumer, who see between 6,000 to 10,000 ads a day, according to Norrington.
“Actually cutting through that clutter to make an impression with our category and our brands, it’s not as easy as it used to be,” Norrington said.
Included in A-B’s investment is its continued soccer partnerships for Michelob Ultra, as the company gears up for the 2026 FIFA World Cup, hosted by the U.S., Canada and Mexico.
“Ultimately, in 2026, soccer will never be the same in America, and I don’t think that Michelob Ultra will be either,” Norrington said.
Michelob Ultra has become a brand associated with an “active lifestyle,” that has materialized with professional golf and basketball partnerships, and soccer is a natural next step, Norrington said. He added that these partnerships are helping A-B reach new consumers, including younger legal-drinking-age consumers through the NBA and WNBA, and Hispanic consumers through Copa America and the FIFA World Cup.
A-B is also continuing to invest in partnerships for Bud Light, with increased spend this year on deals with the NFL, college football and UFC.
Additionally, the company has partnered with comedian Shane Gillis to “get our funny bone back to where we want it to be,” Norrington said.
Stella Artois to Make Big Game Appearance
Included in A-B’s media spend will be a Super Bowl spot for Stella Artois, Norrington announced.
Stella Artois has an “immense amount of equity,” but the company hasn’t tapped into that equity as much as it could have, Norrington acknowledged. The company plans to “unlock” volume growth for the brand in 2025, doubling down on its investment in the brand.
“It’s a brand that sometimes we think of as a brand for special occasions,” Norrington said. “We want that brand to make more occasions special, and it has all the equity in the world to do that.”
Stella Artois is A-B’s seventh largest brand by YTD dollar sales in Circana-tracked channels. Dollar sales have declined -3.9% and volume -5.7% YTD.
A-B waived its long-held right to exclusivity in bev-alc brands advertised during the national broadcast of the Super Bowl in 2022.
Michelob Ultra Extensions to Remain Regionally Focused
Norrington was asked by an audience member about how A-B is balancing extensions of Michelob Ultra, and not oversaturating the brand. Norrington noted that A-B is taking a regionally focused approach with extensions, including Pure Gold and Infusions.
Extensions are focused on markets where Michelob Ultra – the “mother brand” – is a “major brand, including Southern states where Michelob Ultra has 15-20% share of the beer market. In other markets, including the North and Midwest, Michelob Ultra still has enough runway on its own, Norrington said.
“If you extend a brand when it’s in its infancy in a market, that’s a big watch out,” he said. “But the [Michelob Ultra] Lime Cactus-es of the world, the Pure Gold of the world, those exist where Ultra-mother is extremely big and healthy.”