After a successful trial, Constellation Brands will expand its Modelo line extension Oro nationwide in March 2023, the company announced.
Modelo Oro – a lower-calorie, lower-carbohydrate light beer intended to appeal to drinkers looking for better-for-them options – was one of several innovation productions Constellation introduced this spring for simultaneous test launches in various markets.
“After a successful test in the Charlotte, Fresno, and Houston markets, Oro’s performance has exceeded benchmarks on velocity and incrementality to the portfolio,” a spokesperson said in a press release.
Modelo Oro will roll out in 12-packs of 12 oz. slim cans and 24 oz. single-serve cans.
With 90 calories, 4% ABV and 3 grams of carbohydrates, Modelo Oro has specs similar to Anheuser-Busch InBev’s Michelob Ultra, the third-best selling beer in the country behind Modelo Especial and Bud Light. Although Michelob Ultra has sent several of its contenders packing (Molson Coors’ Saint Archer Gold and Boston Beer’s Marathon Brewing Co. 26.2 Brew, among others), none of those launched with an established brand name.
“We want to make sure that we kept some essence of Modelo there, so [we] absolutely want to make sure that it stands for quality,” Modelo senior brand manager Saúl Trejo told Brewbound during the initial innovation launch. “It’s a golden liquid. We want to make sure that we kept that intact. But we’re also bringing in just a very well-balanced, crisp, clean finish to it that we think is a differentiator between the light beer category.”
In addition to Modelo Oro, Constellation will also introduce a variety pack featuring its popular Modelo Chelada line. The variety pack will hit retailers in September and features the Mango y Chile, Naranja Picosa, Limon y Sal and Piña Picante flavors.
The Modelo Chelada brand family has grown depletions (sales to retailers) by +39% in the last four months, according to Constellation, and is the best-selling chelada brand.
So far this year, Constellation has added one new chelada flavor (Naranja Picosa) and introduced 12-packs of Limon y Sal.
Modelo Ranch Water (100 calories, 4.5% ABV) will double the number of states where it is sold in Spring 2023 when it adds Idaho and Montana. Constellation introduced it in Texas, the ranch water cocktail’s home state, and New Mexico this year, and said it was “encouraged by early data” from those markets.
“As another testament to the continued master brand legacy, Modelo Ranch Water liquid has outperformed the in-market leader in consumer product testing on taste and purchase intent,” the company noted in the release.
Production of Modelo Cantarito-Style Cerveza, another offering launched in test markets, will be paused and the beer will be discontinued in its Atlanta, Phoenix and San Diego test markets.
“We introduced Modelo Cantarito as a more holistic approach to betterment, offering consumers a flavorful light beer with a cultural connection,” a spokesperson said. “We will take learnings from this test and look to tailor our approach to Modelo innovation.”
Year-to-date through July 10, dollar sales of the Modelo brand family have increased +17.6%, to $2 billion, at multi-outlet food and convenience stores, compared to the same period last year, according to market research firm IRI. Constellation is the third-largest beer category vendor, with total off-premise sales of $3.79 billion year-to-date through July 10.