Anheuser-Busch, the U.S. subsidiary of AB InBev, is investing USD 13 million in its Baldwinsville brewery in New York State to expand production of two of its fastest-growing businesses: beer brand Michelob ULTRA and spirits-based canned cocktail brand Cutwater Spirits. The project will add new Cutwater production capabilities, increase Michelob ULTRA output and upgrade existing can and bottle lines. The spending brings investment in the Baldwinsville site to more than USD 100 million since 2021.
The investment is part of Anheuser-Busch’s Brewing Futures program, under which the company is investing a combined USD 600 million in its U.S. operations during 2025 and 2026. Alongside production equipment, Baldwinsville will receive a technical training center covering mechanical, electrical, automation, digital and operational skills. It will be one of 15 such centers being established across the company’s U.S. network. The brewery employs hundreds of people and produces more than 50 Anheuser-Busch brands.
The choice of products receiving additional capacity reflects a significant shift within the U.S. beverage market. According to Circana data cited by Anheuser-Busch, Michelob ULTRA is currently the country’s top-selling and fastest-growing beer by volume, while Cutwater has become the largest spirits-based cocktail brand. Cutwater sales increased 104% year-on-year in the 12 months ending July 19, making it the fastest-growing brand across the U.S. alcohol market in the measured channels. The brand is more than 4.5 times the size of its nearest spirits-based cocktail competitor, accounts for nine of the ten largest SKUs in that segment and generates approximately 75% of the category’s dollar-sales growth.
Industry data also indicate that the acceleration is not coming from a small base alone. Shanken News Daily, citing Impact Databank, reported that Cutwater volumes rose 59% in 2025 to approximately 6.4 million cases in the U.S. Growth has remained particularly strong for products such as Lime Margarita and Mango Margarita, while newer cocktail varieties including Long Island Iced Tea, Espresso Martini and White Russian are also expanding rapidly. Anheuser-Busch has responded with increased marketing expenditure, sports partnerships and a planned national Cutwater commercial during the Super Bowl in February 2027.
Cutwater is becoming increasingly important to AB InBev at a time when its traditional U.S. beer business remains under pressure. In its first-half filing with the U.S. Securities and Exchange Commission, the group reported that U.S. overall sales to retailers declined 0.9% and sales to wholesalers fell 1.8%. At the same time, AB InBev said it gained share across total alcohol, with Cutwater ranking as the largest share-gaining brand in U.S. spirits. Cutwater revenue grew at a triple-digit rate and became one of the group’s most important contributors to revenue growth during the second quarter.
CEO Michel Doukeris has made clear that the brewer increasingly views its own spirits and RTD portfolio as its answer to competition from traditional spirits companies. The strategy has expanded further with NÜTRL and the acquisition of a majority stake in BeatBox, giving Anheuser-Busch a broader presence outside conventional beer. Cutwater itself joined the group in 2019, when AB InBev acquired the San Diego company founded by former Ballast Point executives (inside.beer, 01.03.2019).
The Baldwinsville project therefore represents more than a routine brewery upgrade. By putting high-growth spirits cocktails onto infrastructure traditionally associated with beer while simultaneously expanding its strongest U.S. beer brand, AB InBev is increasingly using the scale of its brewing and distribution network to compete across the wider alcohol market.
