In recent years, the Modelo beer brand has firmly established itself as a staple among Hispanic communities, particularly in places like Lansing, Michigan. For individuals like 35-year-old comedian Rio Riojas, Modelo is more than just a beverage; it symbolizes celebrations, family gatherings, and cherished traditions. The beer’s popularity within this demographic reflects both its cultural roots and the strategic marketing efforts by Constellation Brands, the parent company behind Modelo, Corona, and Pacífico.
Riojas encapsulates the sentiments of many within his community when he states that Modelo is “synonymous” with social gatherings. From intimate get-togethers to monumental events like quinceañeras, the presence of Modelo is almost obligatory. This deep-seated cultural association demonstrates how certain products can transcend mere consumption to play vital roles in social rituals.
Research indicates that Hispanic consumers accounted for a staggering 32.5% of Constellation Brands’ sales in 2023, even though they represent only 19.5% of the U.S. population. This disparity highlights a loyal customer base whose preferences are often ignored by broader market trends. Riojas’ observations echo a truth that marketing experts and business analysts recognize: brands like Modelo resonate deeply with their audience, creating an emotional bond that drives sales and fosters community.
The success of Modelo is rooted in Constellation Brands’ understanding of its customer base. Mallika Monteiro, executive vice president and managing director for Constellation’s beer brands, emphasizes that Hispanic consumers are the linchpin of their business model. Historically, Constellation made an impactful move by acquiring Grupo Modelo’s U.S. beer business from Anheuser-Busch in 2013, thus positioning itself to tap into the authenticity of these Mexican brands.
Experts like Alexandra Aguirre-Rodriguez recognize that these brands enjoy a natural affinity among Hispanic consumers because of their Mexican origins. However, the true mastery lies in how Constellation has adapted its marketing strategies. By initially focusing on Spanish-language media and later branching into English-speaking programming, Constellation has amplified its outreach efforts, bringing Modelo into the living rooms of diverse American households while still honoring its cultural roots.
One marketing campaign featuring “abuelas,” or grandmothers, illustrates the brand’s commitment to cultural representation. By showcasing the role of family matriarchs in nurturing and feeding loved ones, the ads resonate with many consumers’ personal experiences. Additionally, a more recent campaign featuring women who build low-rider cars emphasizes the brand’s broadened narrative, aligning itself with themes of resilience and empowerment that appeal to both Hispanic and non-Hispanic audiences.
Hispanic consumers have proven to be a resilient market segment, particularly in the face of economic challenges such as inflation and rising interest rates. According to Jefferies analyst Kaumil Gajrawala, while consumers may scale back spending, the enduring loyalty of Hispanic customers enables brands like Modelo to maintain steady sales. Indeed, these customers are willing to adjust their budgets and cut back elsewhere to ensure they can continue enjoying their preferred beer.
Despite facing challenges, including a spike in unemployment among Latinos and potential tariffs, Constellation has managed to sustain its footing in the market. The company is banking on a projected recovery in Hispanic employment which could lead to an uptick in discretionary spending. This optimistic outlook is strengthened by a recent study showing that, if imagined as an independent nation, U.S. Latinos would represent the fifth-largest GDP globally.
Recognizing the importance of flavor and cultural relevance, Constellation is diversifying its product offerings to align more closely with Hispanic traditions. The introduction of products like the Modelo Agua Fresca line draws inspiration from popular beverages consumed at Mexican street markets, thus deepening its connection with consumers.
At family gatherings, where trays filled with Modelo cans greet guests alongside traditional foods like shrimp and finger foods, the beer transforms from simple drink into a central feature of communal experience. For someone like Riojas, gifting a box of Modelo at social events goes beyond mere custom; it’s about sharing cultural heritage and reinforcing community bonds.
Modelo is more than a top-selling beer in the United States; it represents a confluence of culture, tradition, and community for many Hispanic Americans. Riojas’ statement about feeling represented through the brand underscores the emotional tie that consumers develop with products that reflect their identity. Through strategic marketing and a commitment to authenticity, Constellation Brands has not only captured a lucrative market niche but has also fostered a cultural connection that transcends the realm of commerce. As the relationship between Modelo and its consumers continues to flourish, it will undoubtedly remain a symbol of celebration and unity within Hispanic communities across America.