Beer Marketer's Insights - Mich Ultra Zero Coming Next Yr; "Perfect Time"; NA Beer "Expected to Double in Size" to $2 Bil in 5 Yrs

AB's far more selective about innovation these days. But co's bringing one notable new brand to the mix in 2025: Michelob Ultra Zero, an alcohol-free beer with 0% ABV, just 29 calories and 6.5g carbs, half the carbs of the leading non-alc competitors, co announced. AB aims to "redefine" NA beer with Mich Ultra Zero and complement core brand that's become AB's #1 brand by $$ and #2 overall. Mich Ultra Zero will launch in 12pk 12oz cans Jan 2025 before rolling out 6pk 12oz bottles in Mar 2025 "wherever Michelob Ultra is sold," co declared. "As the non-alcoholic beer category continues to grow, there couldn't be a better time" to launch Mich Ultra Zero, stated cco Kyle Norrington. Non-alc beer is "expected to double in size" over the next 5 yrs, Kyle told distribs during recent EAM mtg. It's projected to become a $2-bil category by then, per release. So Ultra's looking to "make its mark" and "stand out from the crowd with unique product attributes that fit even more social occasions," said Kyle in released statement. AB Still #1 NA Portfolio; Up 4% YTD and 1/3 of NA Beer Sales but Losing Share of Segment in Scans AB's non-alc beer portfolio continues to grow and lead the segment this yr. Collectively, AB non-alc beer $$ grew 4% to $106 mil YTD thru Sep 8 in Circana multi-outlet + convenience data. That'd be the #17 brewer by $$ in scans on its own, larger than Lagunitas. Its lead NA, Bud Zero, quietly has been one of AB's most consistent growth brands since its 2020 launch, rising to co's 18th largest beer brand by $$ in Circana MULC.Yet this yr, much of the growth from Bud Zero (+10%), Busch NA (+8%), Stella NA (+39%), and Golden Road NA Mango Cart (+79% off a much smaller base) was offset by drops from O'Douls (-16%), Beck's NA (-9%) and Saint Pauli NA (-99%). As non-alc segment surged +29% yr-to-date, AB shed nearly 8 share of NA beer $$ to 32.2 in Circana MULC. That's still ~12 share ahead of next largest NA suppliers, Athletic Brewing and Heineken USA. But Athletic picked up 5 share of NA beer $$ on its own and several other cos, from Constellation, MC, Diageo Beer and a slew of craft brewers, are gaining ground in NAs. Can big bet on Mich Ultra Zero fuel another NA growth run for AB?

Mich Ultra Zero Coming Next Yr; "Perfect Time"; NA Beer "Expected to Double in Size" to $2 Bil in 5 Yrs

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