SALES OF CORONA are soaring, despite the Mexican beer’s bad taste ratings.
Morgan Stanley analysts wrote in a recent note that they were “surprised by the momentum occurring at Corona.”
Parent company Constellation reports that sales are up 16%, and Wall Street says brand perception is improving.
The company plans to release cans, a move Morgan Stanley says will drive sales even higher.
Corona is the fifth-best-selling beer in the US. In Ireland, it is the second-biggest brand behind only Bulmers cider for major distributor C&C Gleesons.
Its market share is “growing while the rest of the beer business is drying up or being siphoned off by new small-batch brewers,” Kyle Stock at Bloomberg Businessweek reported last year.
The beer’s popularity is perplexing because critics agree that Corona tastes terrible, Stock wrote.
“After 3,200 reviews at RateBeer.com, Corona has a grade of 1.69 out of 10,” according to Businessweek.
The Beer Advocate gives Corona an ‘awful’ rating of 55 out of 100 and the following description: ‘faded aromas of sulphur, faint skunk, mild cooked veggies.’”
Corona’s success is also puzzling because traditional beer brands like Budweiser are facing declining sales.
It’s the marketing
So how has Corona managed to become so popular? It’s all in the marketing, according to Stock.
Constellation began marketing the beer very aggressively in recent years. The company specifically aims to get people to buy the beach-friendly beer in the winter months.
But it’s not difficult to sell consumers on Corona’s image. ”The formula is simple: sand, sun, and lime wedges,” Stock writes.
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