16 Corona

Introduction

The Mexican lager known as “Corona”, is a variation of beer that is brewed all across Mexico by its largest brewer Grupo Modelo, owned by Belgian company Anheuser-Busch InBev, and is exported to over 150 countries worldwide. (Wikipedia 2008) Corona is known for usually being served with a wedge of lime or lemon in the bottle for extra flavor, as well as its distinctive glass bottle with its iconic crowned logo. Corona got its name and brand logo from the Cathedral of Our Lady of Guadalupe in the city of Puerto Vallarta, inspired by the “Corona” (crown) that she wore (Craft Beer & Brewing 2022). Corona has been the No. 1 best-selling Mexican and imported beer in the U.S.A. since 1988. Corona was crowned the “world’s most valuable beer brand”, and has achieved so by using a classic recipe of the “finest water, malted barley, hops, corn, and yeast, and is especially known for its pils malt, and maize, which yields the smoothest beer within the industry (BakersPlus 2022). Corona has created its identity by associating itself with a calm, tropical, white powder beach through its advertisements, allowing you to really feel like you’re able to sit back and relax with an ice-cold Corona.

Origin

Corona was first established in 1925, just 7 years after the end of The Great War, at the “Cervecería Modelo” (Grupo Modelo) company in Mexico City, Mexico, to celebrate their 10th anniversary (Craft Beer & Brewing 2022). Corona’s first original brew is of German origin, as German immigrants made up the majority of brewers at the time. The year after the establishment of Corona, Grupo Modelo was debating on how to store Corna, in which they considered using “dark-coloured bottles to preserve and improve the beer’s flavor”. In the end, Grupo Modelo ended up using clear, transparent bottles, in which the unique shape of the bottle has become an ever-growing legendary symbol for the brand. One decade after the original brew, a variant of Corona named, “Corona Extra” earned itself the name of one of Mexico’s best-selling beers, mostly due to the marketing strategy of combining the beer and a tropical beach. In 1937, Grupo Modelo began pouring more resources into the marketing of the beer, naming Corona Extra a fine quality brew to gain advantage and stand out from its rival beer in Mexico named, “Pulque”, which was a Mexican-indigenous beverage. In the end, Grupo Modelo’s aggressive advertising caused the decline of Pulque’s success, and an everlasting increase in Corona’s, resulting in the population declaring Corona as the Mexican beer. (The History of Beer 2022). Later on, in 1976, Grupo Modelo took advantage of an opportunity their northern brother, the U.S. gave them and began exporting north. Because of this, the Corona brand exploded in popularity, and black markets mainly in New York, Colorado, and Denver were drowning in success. 33 years later, Corona began offering their lager in cans as well as bottles, a massive expansion for the company. In 1989 Corona created a soon-to-be best-seller, Corona Light. Soon later in the mid-1990s, the United States top-selling imported brew was none other than Corona, a position that still holds up to this day (MentalItch 2022).

The following video provides an inside look at one of Modelo’s breweries

Key Milestones

• The year 1925 is regarded as the beginning of Grupo Modelo’s brewing activity, the first beer of which was Corona.
• In 1935 Corona became one of Mexico’s best-selling beers.
• In 1976 the United States allowed Grupo Modelo to begin exporting into the country.
• In June 2013 Anheuser-Busch InBev and Grupo Modelo merged, with the transfer of all United States rights to Constellation Brands (Wikipedia 2018).
• In 1988, Corona became the United States best-selling imported beer.

Brewing Science and Industrialization

Industrial production in Mexico began to take more shape during the Porfirian period, made feasible by the expansion of railroads, which enabled further integration of brewing businesses that had been founded.Brewing plants were built, such as the “Cuauhtémoc breweries in Monterrey, Moctezuma, Veracruz and the Compañía Cervecera de Toluca y México.” (Mexicanist 2022)

Mexico had roughly 36 beer makers at the turn of the twentieth century.  Prohibition in the United States in the 1920s aided the opening of new breweries on the border of Mexico and the U.S.. Already established breweries moved closer to the border for the same reason, becoming tourist spots where Americans went to drink beer. (Mexicanist 2022)

As a result of the already established and growing industrialization, Corona had a head-start over previous brews, as it could make use of railroad expansion for the exportation and transportation of the brew and its ingredients to allow mass production and shipping. Another head-start Corona had was the already established and improving lagering process, to allow for a clearer path to success for creating a fine brew such as Corona. (Mexicanist 2022)

Beer Style

Corona is a Pale Lager beer, which is pale to golden in color, has a strong flavor of hops, and is well attenuated. Gabriel Sedlmayr, who owned the Spaten Brewery in Germany, employed pale ale brewing procedures to then-current lagering brewing methods in the mid-1800s, creating this beer. In addition to Josef Groll, the company produced Pilsner Urquell with the same approach. The following pale-colored beers were extremely popular around the globe and became the most sold type of beer today. (Fandom 2022)

The lagering procedure used by Sedlmayr and Groll is still used today, and depends on a “slow-acting yeast that ferments at a low temperature while being preserved”. Initially introduced to the market as ‘Lagerbier’ in AusFirstGermany, the phrase has become very rare to hear in German-speaking regions of the world. Lager has now become a general term for all beers made by the lagering method in English.(Fandom 2022)

By law, the Bavarian brewers could only brew beer between November and March in the sixteenth century. Beer was often stored beneath blocks of ice in caves and stone cellars in the summer months, so it would be available during the hot months.(Fandom 2022)

The young brewer Gabriel Sedlmayr II went around Europe during the 1820-1830 era to improve his brewing skills, while his family owned the Spaten Brewery in Bavaria. As soon as he returned, he used the brewer edge he had gained to get a more consistent and stable beer. This beer still had some differences from lager today because the use of dark malts caused it to be dark, more like what is known now as Dunkel beer or bock beer.(Fandom 2022)

The enhanced lager beer’s new formula rapidly diffused throughout Europe. Sedlmayr’s acquaintance Anton Dreher, employed the revolutionary lagering method known to enhance Viennese Bock 1840–1841, culminating in the creation of Vienna lager. New kilning procedures involving the use of lighter malts gave the lager an amber-red rich color. (Fandom 2022)

The following video provides an in-detail history of lager-type beer

The WWI and WWII Era

During World War II, a multitude of Mexican breweries took advantage of the U.S.A. to sell more beer to the American peoples, whereas Grupo Modelo focused on raising sales where Corona and the breweries other brews had originated, Mexico. Grupo Modelo succeeded massively in increasing their brews popularity in Mexico while other breweries were distracted trying to move beer into other countries, the main country being the U.S.A.. Grupo Modelo has only seen total rise in their brews popularity, especially in Mexico, and Modelos strategy has only paid off, considering their brews are now a staple of Mexico and beer itself. (For Beer Lovers 2022)

Consolidation

In an effort to continue consolidating the industry, Anheuser-Busch InBev NV acquired Grupo Modelo, the last major independent Mexican beer producer.  Grupo Modelo, the company behind Corona, the world’s best-selling imported beer, would be seamlessly integrated into AB InBev, the world’s largest beer company, as part of the $20.1 billion deal. As a consequence, only a few craft breweries in Mexico remain independent of the global beer giants (Forbes 2012)

On June 7th, 2013, Constellation Brands Inc. announced that its U.S. beer brewery investment from Anheuser-Busch InBev was acquired for approximately $4.75 billion to satisfy U.S. antitrust demands. As part of the deal, Constellation Brands acquired the full ownership of Crown Imports LLC, which gave Constellation Brands complete control of all aspects of its U.S. commercial operations, an exclusive brand license to import, market, and sell Corona and Modelo in the U.S., and freedom to develop new brand extensions and innovations. (Constellation Brands 2013)

Marketing and Branding

Corona’s branding is based on linking the beer with a way of life in which we take a break from the world, relax, and enjoy the simple pleasures of life. Ranging from things like a walk in the woods, a brief getaway, or a few hours with some old friends, there’s something for everyone. Corona promotes itself in a straightforward manner and is remarkably consistent in its advertising strategy implementation. Corona has been especially successful in communicating its advertising message in the United States, where Corona is the most popular import beer. Corona’s marketing approach is based on the concept of “the beach state of mind.” Modelo has succeeded to instill in the minds of customers associations with summer, magnificent sunsets, and tropical beaches throughout the years. No beer brand better embodies the concept of unwinding in a place of relaxation and the attitude of letting all your worries go and relaxing than Corona. (Social Samosa 2020, Brand Struck 2020)

A Quick Advertisement Showcasing the “Beach State of Mind.”

Modern Era

Many people felt the beer brand would suffer as a result of its incorrect identification with the coronavirus, also known as COVID-19, early on in the epidemic.  Disinformation was spread like wildfire linking Corona to the coronavirus back in January of 2020. No sensible link between the two exists. Constellation chose not to respond to the false information. This looked to be the best decision that Constellation could have made. Corona’s sales were marginally hampered after Mexico was forced to halt the production in their breweries during the pandemic, not because of the so-called “link” between Corona and the virus.  In October of 2020, the business announced that increased sales of Corona beer and Modelo’s other branded items in alcoholic stores had completely covered, and then some, a 50 percent reduction in restaurant sales. Constellation’s stock had risen 14% to $216 a share.

Anheuser-Busch InBev saw a 20% drop in sales outside of the U.S. in the first half of the year; Although Anheuser-Busch has its own eponymous beer, which means Corona accounts for a significantly smaller percentage of overall sales than Constellation. According to Constellation CEO William Newlands, demand for Corona is at an all-time high. “Consumer demand and takeaway for our brands remains extremely strong.” (CBS News 2020)

References

Baker’s – corona extra Mexican lager beer, 12 bottles / 12 fl oz. , 12 bottles / 12 fl oz – Baker’s. (n.d.). Retrieved February 3, 2022, from https://www.bakersplus.com/p/corona-extra-lager-beer/0008066095615

Our story. Corona Extra. (n.d.). Retrieved February 3, 2022, from https://www.coronaextra.ca/ca_en/our-story

🍺 information about the corona beer. The Best Beer Website 🍻 | For Beers Lovers. (2020, July 27). Retrieved February 3, 2022, from https://www.forbeerslovers.com/en/information-about-the-corona-beer

🍺 information about the corona beer. The Best Beer Website 🍻 | For Beers Lovers. (2020, July 27). Retrieved February 3, 2022, from https://www.forbeerslovers.com/en/information-about-the-corona-beer

The oxford companion to beer definition of corona extra. Craft Beer & Brewing. (n.d.). Retrieved February 3, 2022, from https://beerandbrewing.com/dictionary/MIqZMAURFM/

Mike Pomranz June 04, 2021. (n.d.). Corona named the world’s Most valuable beer brand. Food & Wine. Retrieved February 3, 2022, from https://www.foodandwine.com/news/corona-named-the-worlds-most-valuable-beer-brand

History of corona beer. Mental Itch. (2021, September 12). Retrieved February 3, 2022, from https://mentalitch.com/history-of-corona-beer/

For more information about Corona extra. (n.d.). Retrieved February 3, 2022, from https://www.winequest.com/wineinsight/winesheets/147678-C:_Users_Tiffany%20Getten_Documents_Corona%20Extra.pdf

Wikimedia Foundation. (2021, December 13). Grupo Modelo. Wikipedia. Retrieved February 3, 2022, from https://en.wikipedia.org/wiki/Grupo_Modelo

Pale Lager. Beer Wiki. (n.d.). Retrieved March 10, 2022, from https://beer.fandom.com/wiki/Pale_lager#History

Mexicanist. (2022, January 22). The history of the brewing industry in Mexico. Mexicanist. Retrieved March 10, 2022, from https://www.mexicanist.com/l/the-history-of-the-brewing-industry-in-mexico/

🍺 information about Modelo beer. The Best Beer Website 🍻 | For Beers Lovers. (2020, August 16). Retrieved March 10, 2022, from https://www.forbeerslovers.com/en/information-about-modelo-beer

Adamska, M. (2020, September 14). The positioning of the three most valuable beer brands: Brandstruck: Brand strategy / positioning case studies. BrandStruck. Retrieved April 8, 2022, from https://brandstruck.co/blog-post/positioning-three-valuable-beer-brands/

Images

Baker’s – corona extra Mexican lager beer, 12 bottles / 12 fl oz. , 12 bottles / 12 fl oz – Baker’s. (n.d.). Retrieved February 3, 2022, from https://www.bakersplus.com/p/corona-extra-lager-beer/0008066095615

Http://www.socialsamosa.com/wp-content/uploads/2012/04/fancy-logo.bmp: Fancy, fancy logo, Social Butterfly. Pinterest. (2013, March 15). Retrieved April 8, 2022, from https://www.pinterest.com/pin/100557004152227794/