Why Anheuser-Busch is crushing it, even as Americans drink less alcohol

• Americans aren't drinking as much alcohol, but shares of Anheuser-Busch are the highest since 2000.
• Key pivots towards premium and non-beer products are paying off.
• Wall Street analysts are overwhelmingly bullish about the company's future prospects.

Americans are drinking less alcohol. Whether it's because of rising costs, shifting social dynamics, or the emergence of greener alternatives, beer and booze consumption is at the lowest on record.

But that hasn't stopped shares of alcohol behemoth Anheuser-Busch from ascending to their highest level since 2020. That stock gain has accelerated in 2026, and reached a fever pitch on Thursday after the company reported well-received earnings that eased worries over a demand collapse.

So what gives? Why is the world's biggest beer producer thriving as alcohol loses its foothold as an American cultural staple?

It can be broken down into five main reasons:

1. A shift towards premium and non-beer products

While this doesn't specifically address the decline of interest in alcohol, both pivots offer bigger margins for the company.

Michelob Ultra — considered premium, which allows the company to charge higher prices — has become the most popular beer in the US. This may not be up the alley of company spokesmen Post Malone and Shane Gillis, who prefer Bud Light, but it's the way the nation is moving.

Meanwhile, products like hard seltzers, hard teas, ready-to-drink cocktails, and ciders can fetch similar prices, and don't cost as much to manufacture. This played out in Anheuser-Busch's earnings report, which saw increased non-beer volumes helping to offset shrinking beer consumption.

2. Growth outside the US

This was another earnings bright spot on Thursday, when Anheuser-Busch reported growth in Africa and South America. It saw a record-high volume of beer sales in Colombia in 2025, and premium beer Corona helped drive double-digit growth in 30 markets.

3. It's part of the defensive stock trade

When the going gets tough, people crack a cold one … and buy consumer-staples stocks insulated from cyclical economic gyrations. Beer stocks are part of this group, and all of them — not just Anheuser-Busch — have risen over the last quarter.

But it's worth noting that Anheuser-Busch is the only one currently at multiyear highs. Constellation Brands, one of its major US competitors and the maker of wildly popular Modelo, is still basically flat over the past 12 months.

4. Investors like the capital picture

The company announced a $6 billion buyback plan and a dividend last quarter. Its balance sheet is apparently in good enough shape to offer cash distribution to investors.

5. Wall Street loves the stock

Out of the 34 analysts that cover the stock, 27 of them have buy ratings, while the other seven have a hold. No sells.