Produced in the Cervería Modelo brewery in Mexico, Corona has grown to become one of the most recognisable brands of beer. This is largely attributed to its clever marketing strategies where it is often pictured on the beach next to a lime wedge, giving it an ‘exotic’ appearance. After all, it is from Mexico.
In recent years, Corona has marketed itself as more than just a beer, but rather, a lifestyle. And despite its poor online reviews, scoring a 56 ‘awful’ on the beer advocate, Corona has still managed to convince the world that it is the beer of choice when having a fun night out. With Corona sales expanding year after year, it seemed as if nothing could stop its momentum.
That is, until the coronavirus came to spoil the party.
Never would Corona have imagined that the deadly pandemic that has instilled fear throughout the global community would share the same name. The images of contagious death and destruction are in stark contrast to the cheerful image that Corona tries to portray, and the two differ so greatly in reality that the only similarity between between them is their rapid global expansion.
Despite attempts from AB InBev, Corona’s parent company, in dispelling myths connecting the beer and virus, it has not prevented fear from spreading, with 5W Public Relations finding that 38% of Americans would not buy Corona beer as a result.
While this misunderstanding had first started through their common name, it was exacerbated through jokes on social media where many would post images making fun of the beer and the virus, leading certain individuals to strongly believe that Corona beer is the cause of the pandemic. As a result, both sales and the stock price have suffered.
While Corona is in a quiet period now, given that they have halted production to meet the Mexican government’s ban on non-essential activities, it should be noted that Corona has not reminded the public of the misunderstandings since the 14th of March, where its Corona beer is obviously not the cause of coronavirus.
With many countries now lifting their restrictions, a big question mark still hangs over the revitalisation of Corona. It must consider marketing strategies to stop people from subconsciously connecting its beer with the virus, and potentially find a way to capitalise on their greater brand awareness. As the coronavirus dies down, perhaps it’s an opportunity for Corona beer to take its place and grow stronger than ever.
The CAINZ Digest is published by CAINZ, a student society affiliated with the Faculty of Business at the University of Melbourne. Opinions published are not necessarily those of the publishers, printers or editors. CAINZ and the University of Melbourne do not accept any responsibility for the accuracy of information contained in the publication.
Henry is a third-year Bachelor of Commerce student who will be majoring in Finance and Accounting at the University of Melbourne. He is interested in topics that help to explain asset price fluctuations as well as other issues that provide insights into the future.
Lan is a postgraduate accounting student at Unimelb with international experience across three countries and diverse industry exposure ranging from educational services to energy. In her spare time, you can always find her cooking or baking in the kitchen to satisfy her taste buds.
Vickram is a third year Bachelor of Commerce student majoring in Accounting and Management. In his spare time, Vickram can be found in the gym, trying his hand in the kitchen or watching football (soccer).