Dive Brief:
- Anheuser-Busch is investing $7.4 million in its Los Angeles brewery to increase production of fast-growing Michelob Ultra.
- The investment is part of Anheuser-Busch’s Brewing Futures initiative, a $300 million commitment announced earlier this year to improve its U.S. manufacturing operations.
- Michelob Ultra has become the top-selling beer in the U.S., according to Circana research, and Anheuser-Busch is leaning into the brand as a growth engine through its various sports and lifestyle partnerships.
Dive Insight:
Anheuser-Busch, which makes 45 products at its Los Angeles brewery, said the investment will upgrade packaging and brewing equipment for fast-growing brands such as Michelob Ultra.
The brewer expects the new investment to expand its capacity, and especially aid in producing more 25-ounce cans and 15-pack slim cans of Michelob Ultra to meet the growing demand.
The $7.4 million investment builds on the $180 million the alcohol giant has already spent in the brewery during the last five years.
Expanding in Los Angeles could be especially beneficial, as residents of the city purchase more Michelob Ultra than anywhere else in the country, the company said, citing Circana data. The California city is also a host city for the 2026 FIFA World Cup and will host the 2028 Olympic and Paralympic Games, both of which have Michelob Ultra as a sponsor.
Anheuser-Busch launched the Brewing Futures initiative to create and sustain manufacturing jobs, boost technical skills training and add opportunities for veterans.
Since the program’s launch in May, Anheuser-Busch has invested $9 million in its brewery in Baldwinsville, New York, and $17 million in its Houston brewery.
The rise of sales of Michelob Ultra comes at a time when alcohol consumption as a whole is declining. Michelob Ultra has grown 15% and gained more than 2% of the market since 2020, Anheuser-Busch said. The beer, which has 2.6 carbs and 95 calories, taps into a consumer preference for more balanced choices.
