In Lansing, Michigan, the Instituto cultural del buen vivir is not just a gathering place; it represents a vital heartbeat for the Hispanic community, one that is distinctly tied to the Modelo beer brand. For 35-year-old local stand-up comedian Rio Riojas, Modelo isn’t just a beverage—it’s a cultural emblem that permeates social events everywhere from intimate family gatherings to larger celebrations like quinceañeras. “You can always count on seeing Modelo in the hands of friends and family during any gathering,” he explains, highlighting its status as the beverage of choice. This deep-seated relationship with the brand goes beyond mere preference; it speaks to a sense of identity and community that Modelo has successfully tapped into.
Modelo’s ascendance in the beer market, particularly as it surpassed Bud Light to become the top-selling beer in the United States, can largely be attributed to well-strategized marketing that resonates with the Hispanic demographic. Constellation Brands, the parent company of Modelo, brought these iconic Mexican beers to U.S. shelves, and its marketing efforts have established an authentic connection with a community that represents a substantial portion of its sales—32.5% in 2023, despite making up only 19.5% of the population overall. This disparity denotes a lucrative relationship grounded in cultural relevance and shared values.
According to Mallika Monteiro, Executive Vice President at Constellation, the key has been focusing on “the authentic reflection of these brands” so that they are embraced not just as beverages, but as cultural artifacts that signify togetherness and heritage. By opting for bilingual marketing campaigns that gradually transitioned into English-language media, Modelo successfully expanded its reach while staying true to its roots.
Alexandra Aguirre-Rodriguez, an associate professor with keen insights into branding, explains that emotional connections invented by brands can heavily influence consumer behavior. In the case of Modelo, the strong cultural ties families have with it encourage loyalty that transcends standard consumer-brand relationships. The inclusion of culturally relevant themes, including features of “abuelas” in advertisements, adds layers of representation, allowing consumers to see their lives mirrored on-screen.
Moreover, this emotional connection is particularly vital for Latino communities, which often seek comfort in familiar brands during times of economic uncertainty. In an era marked by inflation and financial strain, loyal customers may prioritize Modelo over other expenditures. According to Jefferies analyst Kaumil Gajrawala, this consistent backing allows Constellation to remain more resilient than competitors, as Hispanic consumers may forego other spending to maintain their Modelo routines.
Yet, challenges abound. The wider economic backdrop, characterized by high inflation and rising interest rates, is reshaping consumer behavior. Constellation Brands is not immune to these pressures. CEO William Newlands acknowledged a connection between rising Hispanic unemployment and slightly diminishing sales. Despite this, experts like Tom Fullerton from the University of Texas forecast that consumers may sustain their patronage of Modelo, accepting potential price increases yet remaining loyal due to the cultural significance the brand holds.
With a growing recognition of Hispanic financial power—if U.S. Latinos formed their own nation, they would represent the fifth-largest GDP—companies like Constellation are eager to adapt. Monteiro highlighted an expansion into flavors that resonate more deeply with the community, such as the new Modelo Agua Fresca line inspired by classic Mexican beverages found in street markets.
At gatherings, Modelo serves as more than just a drink; it enhances the entire experience. Riojas recalls how impressive trays laden with delicious dishes, alongside chilled Modelo cans, create an atmosphere of unbridled joy. It’s common to whip up a refreshing “Michelada,” which seamlessly combines the Mexican lager with various juices and garnishes, suitable for elevating any festive occasion.
For Riojas, purchasing a box of Modelo for social events has become a ritual, cementing the brand as a staple gift that showcases not only his understanding of the cultural significance but also his commitment to celebrating Hispanic identity. “It’s empowering to see us represented,” he notes, encapsulating the emotional and cultural resonance the Modelo brand holds within his community.
As Constellation Brands continues to cultivate its relationship with the Hispanic community, Modelo is poised to navigate both cultural and economic landscapes with agility. The beer’s representation in community gatherings encapsulates a celebration of heritage, family, and identity that resonates deeply among its consumers. As Hispanic buying power increasingly reflects its broader influence in the U.S. market, brands like Modelo are sure to ride this wave of cultural connection, strengthening ties that bind communities together while continuing to evolve with consumer needs.