Constellation Brands: Corona Premium could be next big beer
According to Constellation Brands, the company behind Corona and a number of other alcoholic beverages, Corona Premium could be its next runaway success. On a call with Morgan Stanley last week, the company’s chief marketing officer said that Corona Premium – a low calorie, low carb, version of the famous cerveza beer – has “big brand potential”. It’s one of Constellation’s first innovations with the Corona brand, and was rolled out earlier this year after testing in 2017.
Constellation Brands traded down by as much as 3% last week
Source: Yahoo Finance
Executive James Sabia told listeners “this could be our next big brand because of the product benefits that it delivers to the consumer. That’s what you’re looking for in terms of lower carbs – 2.6g of carbs – and 90 calories.”
Sabia said that the company had spent about $35 million establishing the new brand, and it was already gaining traction amongst the all-important Hispanic market – something a similar product (Corona Light) failed to manage.
As the trend towards healthier lifestyles continues, brands that offer the same social experience with a friendlier label are poised to outperform. Low calorie and low carb are likely to be determinates of success in the beer market, where consumers are particularly aware of the effects that they’re favourite tipple can have on their bodies.
Sabia said: “We think it has so much upside because where the consumer is going with better-me and better-for-you, we're going to put more and more resources against it, and we're going to continue to advertise against it. Our target consumer right now - we really went after a little bit older male consumer. But, we understand that it's really trying to cross over now to males and females, all different ages.”
Speaking specifically to the uptake amongst Hispanics, he added: “The exciting part for us around Corona Premier is out west with Corona Light, it was very difficult to sell a Corona Light to Hispanic consumers from Mexico. They did not really want Corona Light. We tried, but it didn't work. Corona Premier is different... so we're starting to get some very good traction in some of the Hispanic accounts in California.”
Dominion holds Constellation Brands in its Global Trends Luxury Fund.
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