Skip to main content

Market Overview

Corona Beer Sales Reportedly Unaffected By Unfortunate Name Association

Share:
Corona Beer Sales Reportedly Unaffected By Unfortunate Name Association

Marketing executives at Corona beer's parent company Constellation Brands, Inc. (NYSE: STZ) were concerned in early 2020 the brand's unfortunate name resemblance with the coronavirus would impact sales, The Wall Street Journal reported.

'Added Layer' Of Pressure: As the coronavirus swept across the world, Constellation's marketing team faced new pressure in how to promote the product in an uncertain environment.

The company also had the "added layer and the pressure" that the virus' name includes "corona," John Alvarado, senior vice president for brand marketing at Constellation's beer division, told WSJ.

Related Link: Molson CEO: 'We Know How To Operate In The Middle Of A Pandemic'

Fast forward to December, and Corona sales showed no impact from the unfortunate association. Sales of Corona-branded beer through Dec. 6 were consistent with what the same time in 2019, according to market research firm IRI.

Some Wall Street analysts agree with the data. Cowen's Vivien Azer told WSJ the pandemic didn't result in "any kind of negative impact" on sales.

Trusted Beer Brand: Corona sales held up steady, as the brand offers the familiarity and trust that consumers were looking for, Azer also said.

If consumers are limiting their visits to stores, they are not likely to try a new craft beer they never had before.

"During the early days of the lockdown, consumers gravitated toward large, trusted brands," she said.

Meanwhile, it is business as usual at Constellation HQ. The company plans on running its annual "O Tannenpalm" ad that made its debut in 1990.

"We're an optimistic brand, and this season certainly plays to that, and when you think about all that has gone on this year, I think that message is even more needed," Ann Legan, vice president for Corona brand marketing at Constellation Brands, told WSJ.

 

Related Articles (STZ)

View Comments and Join the Discussion!

Posted-In: Beer beverages Corona Corona Beer Coronavirus Covid-19News Media Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com