Beer sales are facing challenges. Anheuser-Busch remains resilient

Anheuser-Busch InBev Thrives Despite Industry Challenges

Michelob Ultra rose to become the leading beer in the United States last year. - Daniel Knighton/Getty Images

While beer sales have been faltering, Anheuser-Busch InBev, the world’s largest brewer, has managed to defy the odds. The company has weathered the aftermath of a Bud Light boycott and now stands out in a market where many consumers are either drinking less or moving away from beer altogether. Its stock price is at its highest point in five years, Michelob Ultra has claimed the top spot among American beers, and their canned cocktails are enjoying strong popularity.

Several years ago, Anheuser-Busch set out to broaden its image beyond just beer, and that strategy is paying off.

“Anheuser-Busch has done an impressive job expanding its range of products,” noted Dave Williams, president of Bump Williams Consulting, which specializes in beer industry analysis.

The company has moved quickly to tap into the booming markets for non-alcoholic beers and ready-to-drink beverages, diversifying its offerings beyond traditional brews.

This approach, Williams added, has helped the company cushion the impact of the pressures facing the beer industry as a whole.

Although Anheuser-Busch declined to provide a comment to CNN, CEO Michel Doukeris highlighted the success of their non-beer brands—such as Cutwater Spirits and NÜTRL vodka seltzer—during a recent earnings call.

Doukeris reported that these brands are growing rapidly, positioning Anheuser-Busch as the fastest-expanding spirits supplier in the United States, despite its roots as a beer company.

Currently, these non-beer products make up 3% of the company’s total revenue and are expected to increase in volume at twice the pace of the overall beer segment, according to Doukeris.

Cans of NÜTRL, a vodka-based seltzer available in several flavors. - Jason Lowrie/BFA.com/Shutterstock

Challenges in the Beer Market

Despite these successes, Anheuser-Busch’s core beer business is facing a long-term decline. The company’s most recent quarterly results showed a 1.8% drop in U.S. revenue and a 1.9% decrease in global beer sales volume.

One contributing factor is the ongoing fallout from the Bud Light controversy, which began three years ago and from which sales have yet to fully recover. The entire “Premium Light” category—including competitors like Coors Light and Miller Lite—continues to struggle to attract consumers.

“Even though these brands remain widely available, this segment is the largest in the business and continues to face significant growth challenges,” Williams explained to CNN.

Some fans of light beer are switching to ready-to-drink beverages or craft cocktails, but these gains haven’t been enough to make up for the loss of traditional beer drinkers.

Nevertheless, Anheuser-Busch (BUD) is outperforming many of its peers, with its stock up 15% this year.

Bottles of Bud Light, which has faced declining sales since a 2023 boycott. - Yuvraj Khanna/Bloomberg/Getty Images

Other major brewers are also feeling the strain: Molson Coors saw a drop in fourth-quarter sales, prompting a new CEO to implement a turnaround plan; Constellation Brands, which makes Corona, continues to be affected by immigration crackdowns; and Heineken recently announced plans to reduce its global workforce by 7% in the coming years.

Bright Spots and New Leaders

Despite the overall decline, there are some standout performers in the beer category. Low-carb Michelob Ultra and the budget-friendly Busch Light Apple—both produced by Anheuser-Busch—have found success.

Michelob Ultra Zero recently became the top-selling non-alcoholic beer by volume, while Heineken 0.0 still leads in dollar sales, though the gap is closing, according to Beer Business Daily.

Looking Ahead: The World Cup Effect

During a February earnings call, CEO Doukeris noted that while industry volumes lagged in 2025, the start of 2026 has been promising.

He reported that both beer sales volume and revenue increased in January. Additionally, the company expects brands like Michelob Ultra and NÜTRL to benefit from its major sponsorship of the upcoming FIFA World Cup in North America. This event is anticipated to be a major boost, especially after the company was caught off guard when beer sales were banned at stadiums during the previous World Cup in Qatar.

Gen Cross, a senior equity analyst at BNP Paribas, pointed out that the World Cup has the potential to significantly increase global demand for beer. Historically, beer sales during World Cup years have risen by about 0.25% globally, with sales during the tournament months sometimes surging tenfold.

However, Williams cautions that the event alone may not be enough to reverse Anheuser-Busch’s fortunes. “Unless the ‘Premium Light’ brands like Bud Light can stop their decline, the growth in other categories isn’t sufficient to fully offset those losses,” he said.

Still, Williams acknowledged that Anheuser-Busch’s rate of decline is less severe than that of its competitors, which he considers a win in the current climate.