A survey says 38% of drinkers won't touch Corona because of epidemic fear. Corona says despite that 'misinformation,' sales are strong.
Áine Cain
The coronavirus is in no way linked to the popular beer brand.
Victor Ruiz Garcia / Reuters
The marketing-research firm YouGov estimates that Corona Extra beer's image has taken a hit thanks to the coronavirus.
The marketing-research firm YouGov estimates that Corona Extra beer's image has taken a hit thanks to the coronavirus.
For its part, the beer brand's parent company disputes the idea that the epidemic is a major drain.
"Sales of Corona remain strong, and we appreciate the continued support of Corona drinkers," a spokesperson for Constellation Brands told Business Insider.
There is no link between the coronavirus and the beer brand.
CORONA (CORVID-19) VIRUS
Corona — Latin for "crown" — is one of the most popular beer brands, and its labels are aptly adorned with a golden crown.
But the link between the word "corona" and a global epidemic has led to questions about whether or not Corona is in for a branding nightmare. The coronavirus, which causes the disease COVID-19, has killed at least 2,900 people around the world since it originated in China in December. Its name was derived from the crown shape its viral particles form.
Constellation Brands, which has the exclusive license to distribute Corona Extra in the US, has unequivocally said that concerns that shoppers are ditching the beer because of fears over the illness are misleading.
"There's a good amount of misinformation out there that doesn't match the reality of the business or consumer sentiment," a Constellation spokesperson told Business Insider. "Sales of Corona remain strong, and we appreciate the continued support of Corona drinkers."
But some studies have raised concerns about the health of the Corona brand. The public-relations agency 5WPR surveyed 737 adult US consumers about Corona and found 38% said they "would not buy Corona under any circumstances." A total of 16% said they were "confused about whether Corona beer is related to the coronavirus."
The market-research firm YouGov calculates "buzz" scores for brands based on an average daily sample size of 357 respondents with an opinion on a brand. The firm also breaks down "purchase intent" for different products and brands based on an average daily sample size of 2,110 participants.
YouGov found that Corona beer's buzz score dropped from 75 at the start of 2020, around when news of the coronavirus first began to spread, to around 51 in February. YouGov said the beer brand's additional drop regarding "purchase intent" could also be attributed to it being "closely associated with beach holidays."
And in a case of unfortunate timing, Corona just released a hard-seltzer campaign based on the slogan "coming ashore soon" — which, given the spread of the coronavirus from China to 55 countries around the globe, landed with a thud on social media.
But for its part, Constellation Brands has maintained that it trusts consumers not to link the epidemic to its beer brand.
"We believe, by and large, that consumers understand there's no linkage between the virus and our business," Maggie Bowman, a representative for Constellation Brands, told Business Insider in January.
Corona beer maker says U.S. sales remain strong despite virus outbreak
(Reuters) - Corona beer maker Constellation Brands Inc (STZ.N) said on Friday sales of its Corona Extra beer remained strong in the United States in the four weeks to Feb. 16, amid the rapid global spread of the coronavirus.
The Modelo Especial beer maker also said all units supporting its beer business are seeing positive sales trends for the brand thus far in 2020 despite claims about the impact of the coronavirus on its business.
There have been a few media reports inaccurately claiming sales of the beer were being impacted by the virus, a Constellation spokesman said.
“We’ve seen no impact to our people, facilities or operations and our business continues to perform very well,” Chief Executive Officer Bill Newlands said in a statement.
Newlands added the company does not have much exposure to international markets such as China that have been most impacted by the outbreak.
The epidemic has killed over 2,700 and infected at least 80,000 people, most of them in China.
Reporting by Praveen Paramasivam in Bengaluru; Editing by Shailesh Kuber
The market-research firm YouGov calculates "buzz" scores for brands based on an average daily sample size of 357 respondents with an opinion on a brand. The firm also breaks down "purchase intent" for different products and brands based on an average daily sample size of 2,110 participants.
YouGov found that Corona beer's buzz score dropped from 75 at the start of 2020, around when news of the coronavirus first began to spread, to around 51 in February. YouGov said the beer brand's additional drop regarding "purchase intent" could also be attributed to it being "closely associated with beach holidays."
And in a case of unfortunate timing, Corona just released a hard-seltzer campaign based on the slogan "coming ashore soon" — which, given the spread of the coronavirus from China to 55 countries around the globe, landed with a thud on social media.
But for its part, Constellation Brands has maintained that it trusts consumers not to link the epidemic to its beer brand.
"We believe, by and large, that consumers understand there's no linkage between the virus and our business," Maggie Bowman, a representative for Constellation Brands, told Business Insider in January.
Corona beer maker says U.S. sales remain strong despite virus outbreak
(Reuters) - Corona beer maker Constellation Brands Inc (STZ.N) said on Friday sales of its Corona Extra beer remained strong in the United States in the four weeks to Feb. 16, amid the rapid global spread of the coronavirus.
The Modelo Especial beer maker also said all units supporting its beer business are seeing positive sales trends for the brand thus far in 2020 despite claims about the impact of the coronavirus on its business.
There have been a few media reports inaccurately claiming sales of the beer were being impacted by the virus, a Constellation spokesman said.
“We’ve seen no impact to our people, facilities or operations and our business continues to perform very well,” Chief Executive Officer Bill Newlands said in a statement.
Newlands added the company does not have much exposure to international markets such as China that have been most impacted by the outbreak.
The epidemic has killed over 2,700 and infected at least 80,000 people, most of them in China.
Reporting by Praveen Paramasivam in Bengaluru; Editing by Shailesh Kuber
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