Ultimate Fighting Championship (UFC) made an announcement of the sponsorship agreement that will sign Modelo Especial -- a Mexican imported beer brand. This was to replace beer company Anheuser-Busch Cos. Inc. as the official beer sponsor of the world's largest MMA company in the United States, the ABC News reported Monday.

As a part of the multiyear sponsorship pact, which is expected to begin in 2018, Modelo will contain the branding that will be embellished on the UFC cage. Additionally, the company intends to feature UFC athletes and personalities as a part of the advertising campaign plan.

Modelo has reached marketing pacts with professional sports teams, including the Chicago White Sox and Golden State Warriors.

Modelo will collaborate with UFC within the venues to actively promote athletes. In 2016, WME-IMG, a global leader in entertainment, sports, and fashion, has acquired the UFC business sold by the Fertitta brothers for $4 billion.

Sponsorship relationship

The Bud Light logo has been established at the center of the Octagon for UFC's biggest fights since 2008 when the sponsorship relationship between Anheuser-Busch and UFC began at the time. Despite the deal being finalized, UFC Chief Operating Officer Ike Lawrence Epstein granted the credit to Anheuser-Busch for providing the brand's endorsement with efforts to boost its UFC's business.

Five years ago, Anheuser-Busch threatened to terminate a sponsorship contract with UFC over pessimistic remarks regarding sexism and homophobia made by several fighters within the sport. Modelo seems aware of this situation and plans to work to ensure that the UFC's code of integrity and professional conduct with policies are ethical and effective.

Modelo's popularity

Jim Sabia, the chief marketing officer at Modelo, hoped that a league-wide deal will benefit the Modelo, as the sports organizations attempt to help expand the beer brand into the general market consumer household.

Constellation Brands reach target consumers for imported beer brands that are being marketed in the U.S.

According to CNBC.com, in the second quarter, Constellation's beer sales have increased by nearly 13 percent from the same time last year, thanks to Corona and Modelo's popularity. According to the measure of sales by Brewers Association, Constellation is the largest beer company in the U.S.

Modelo is listed the second best-selling imported beer in the U.S. following Corona.