Constellation Brands, the maker of Modelo beer, continues to reap the benefits of the backlash against Bud Light’s Dylan Mulvaney marketing campaign.
"Our beer business this year delivered double-digit net sales and operating income growth," Constellation Brands CEO Bill Newlands said. "Modelo Especial continued to outperform the market as the top share gainer and solidified its position as the number one beer in U.S. tracked channels."
The company lifted its annual profit forecast and now expects to earn as much as $12.20 per share. In June, Modelo Especial passed Bud Light as the No. 1 selling beer on a dollar basis and remains in the top spot.
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Meanwhile, sales of Modelo helped Constellation’s beer business jump 12% in net sales during the second quarter, with Modelo Especial growing by almost 9% and Modelo Chelada ballooning more than 40% over the period.
Modelo saw its sales run up after the Bud Light campaign featuring Mulvaney, a transgender influencer, rolled out in early April and was met with outcries causing long-time customers to abandon the brand.
Bud Light'sparent, Anheuser-Busch InBev, has seen its market cap drop from $134.55 billion in late March to $91 billion through Thursday. Shares are down 11% year-to-date.
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Shares of Constellation Brands, which also has Kim Crawford wines in its portfolio, are up just 3.6% this year, trailing the S&P 500's 10.5% gain.
While Modelo benefited from Bud Light's marketing mishap, smaller brands are also seeing a boost, such as Ultra Right, which is geared toward Conservative drinkers. Earlier this year, the company sold 500,000 cans in 12 hours after releasing limited editions.
