A consumer boycott of Anheuser-Busch Inbev’s (BUD:NYSE) Bud Light brand following a backlash over its social media promotion with transgender influencer Dylan Mulvaney appears to have benefited smaller rival Constellation Brands (STZ:NYSE).

Constellation’s Modelo Especial Mexican lager brand has reaped
the rewards from the fallout, having leapfrogged Bud Light to become the top-selling US beer brand for the first time.

Surrendering the top spot must be particularly galling for Budweiser-to-Stella Artois owner Anheuser-Busch Inbev, since it was forced to divest its Modelo US business to Constellation by the competition authorities following its purchase of a majority holding in Grupo Modelo back in 2013.

Investors will be looking for more colour on Modelo’s market share gains when Constellation serves up its results for the first quarter ended 31 May before the US markets open on 30 June.

Whereas Anheuser-Busch Inbev’s shares are down year-to-date, Constellation Brands’ shares are in positive territory. To keep things that way, CEO Bill Newlands will need to assure investors that consumers are swallowing beer price hikes, enabling Constellation to offset pressures from higher raw material, packing and logistics costs.

US UPDATES OVER THE NEXT 7 DAYS

QUARTERLY RESULTS

June 30: Constellation Brands, Sodexo, Virtus, Accolade, Pimco

July 6: WD-40, Tilray, Kura Sushi

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