Anheuser-Busch is making a significant investment in its Los Angeles brewery to boost production of the popular Michelob Ultra beer. The company is injecting $7.4 million into the facility as part of its Brewing Futures initiative, which involves a $300 million commitment to enhance manufacturing operations across the United States.
Michelob Ultra has emerged as the top-selling beer in the U.S., according to Circana research. Anheuser-Busch is capitalizing on the brand’s success by leveraging various sports and lifestyle partnerships to drive growth.
The investment in the Los Angeles brewery will focus on upgrading packaging and brewing equipment to meet the surging demand for Michelob Ultra. The company aims to expand capacity and produce more 25-ounce cans and 15-pack slim cans of the beer.
This $7.4 million investment supplements the $180 million that Anheuser-Busch has already poured into the brewery over the past five years. The decision to expand in Los Angeles is strategic, as residents of the city consume more Michelob Ultra than anywhere else in the country.
Furthermore, Los Angeles is set to host major sporting events like the 2026 FIFA World Cup and the 2028 Olympic and Paralympic Games, both of which have Michelob Ultra as a sponsor. This positions the brewery for increased visibility and sales opportunities.
The Brewing Futures initiative aims to create jobs, enhance technical skills training, and provide opportunities for veterans. Since its inception, Anheuser-Busch has invested $9 million in its Baldwinsville, New York brewery and $17 million in its Houston brewery.
The success of Michelob Ultra comes at a time when overall alcohol consumption is declining. The beer’s appeal lies in its low carb and calorie content, catering to consumers seeking more balanced beverage options. Michelob Ultra has witnessed a 15% growth and captured over 2% of the market since 2020.
Overall, Anheuser-Busch’s investment in the Los Angeles brewery underscores the company’s commitment to innovation and meeting consumer preferences in the competitive beer market.
