Constellation Brands beer sales up 13%

Discussion in 'Beer News' started by jmdrpi, Oct 9, 2017.

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  1. jmdrpi

    jmdrpi Grand High Pooh-Bah (8,989) Dec 11, 2008 Pennsylvania
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    http://money.cnn.com/2017/10/05/inv...brands-earnings-corona-beer-mexico/index.html

    This article on CNN focuses on Corona and Modelo, but Constellation also owns Ballast Point. Also Pacifica, Victoria, and Funky Buddha but I would guess those are less of a factor.

    Anyone know how much of the increase is due to the Mexican brands vs. Ballast Point? There is also an article on the online Wall Street Journal that might have more details, but it's behind a pay wall.

    I've always found it very odd that Corona seems to be go-to lager for a lot of yuppies and middle aged drinkers that think they are getting a better "Import" product than other Adjunct Lagers like Bud, Miller, or Coors. But in my opinion, it's basically the same quality, just costs more. My local Total Wine website lists a 24 pack of Corona bottles for $27. A 24 pack of Budweiser is $18. Stick a lime wedge in a Bud and I bet most Corona drinkers wouldn't tell the difference.

    On the other hand I think Negra Modela is a decent beer, that's my go-to at any Mexican restaurant.
     
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  2. EvenMoreJesus

    EvenMoreJesus Initiate (0) Jun 8, 2017 Pennsylvania

    Although I do not know the answer to your general query, Negra Modelo, is, indeed, a fine beer.
     
  3. jmdrpi

    jmdrpi Grand High Pooh-Bah (8,989) Dec 11, 2008 Pennsylvania
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    I found this article with more info. Surprisingly, it's Modelo that apparently boosted their sales:

    Also of note:

     
  4. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,375) Dec 15, 2005 Pennsylvania
    Society Pooh-Bah

    “I've always found it very odd that Corona seems to be go-to lager for a lot of yuppies and middle aged drinkers that think they are getting a better "Import" product than other Adjunct Lagers like Bud, Miller, or Coors. But in my opinion, it's basically the same quality, just costs more.”

    From my perspective the popularity of beers like Corona make sense to me:

    · The vast majority of beer drinkers worldwide prefer AAL type beers; beers that are very light in color and very light in flavor. Corona definitely meets these criteria.

    · A person who purchases a beer like Corona is ‘stating’ I am a person who has ‘distinctive’ taste and I enjoy the ‘best’ (i.e., a premium priced beer)

    It would be interesting to obtain better insight as to who are typical consumers of beers like Modelo Especial. The best that I can report from an anecdotal perspective is that this beer appears to be popular with Hispanics in my area.

    Cheers!

    P.S. The best that I can report anecdotally concerning Ballast Point is that there is lots of old beers like Sculpin on my local beer retailers’ shelves. Old beer is an indicator to me that these beers tend to ‘sit’ vs. sell popularly. Maybe because at 15 bucks a 6-pack they are priced too high to move?
     
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  5. jmdrpi

    jmdrpi Grand High Pooh-Bah (8,989) Dec 11, 2008 Pennsylvania
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    Yeah, the beer is marketed that way. It just seems very transparent to me, and in my opinion the product doesn't back it up.

    I did find this article from 2013 that was written when there was the potential merger, that analyzed the different demographics of Corona vs. Budweiser.
    https://www.forbes.com/sites/annema...ona-bellying-up-to-the-same-bar/#9908a0e78094

    There is definitely a "premium pricing" factor going on:

     
  6. BeanBump

    BeanBump Initiate (0) Dec 14, 2016 California

    I think there is a discernible difference in flavor between the two but, that said, most big beer lagers are made better with a lime in my opinion. Cheers.
     
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  7. EvenMoreJesus

    EvenMoreJesus Initiate (0) Jun 8, 2017 Pennsylvania

    [​IMG]
     
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  8. BeanBump

    BeanBump Initiate (0) Dec 14, 2016 California

    Ha! Not to be confused with an El Salvadorian lime.
     
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  9. jmdrpi

    jmdrpi Grand High Pooh-Bah (8,989) Dec 11, 2008 Pennsylvania
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  10. Squire

    Squire Grand Pooh-Bah (4,385) Jul 16, 2015 Mississippi
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    That's my take on it as well though I can understand why lime is often added to Corona.
     
  11. donspublic

    donspublic Grand Pooh-Bah (3,552) Aug 4, 2014 Texas
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    Not sure if any of the articles mentioned this, but I believe they might be finished with the deal for AB to supply them with some of the beer for sale in the states. I believe the most recent enhancements to the Nava brewery were going to allow them to supply most of the US market themselves. I know they are still expanding the brewery in Nava but could have sworn they would be close to done with their dependence on AB by now. Also curious to know what is going to be coming out of their Mexicali brewery. It might be that demand is outreaching the Nava site and this brewery is going to produce the same beer.
     
  12. meefmoff

    meefmoff Pooh-Bah (1,922) Jul 6, 2014 Massachusetts
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    Interesting stuff, thx for posting.

    I'd be curious how well Corono's "premium" reputation tracks with the onset of their beach-paradise ad campaign. It seems particularly effective to me, especially as something that sets it apart from the jabronis-at-a-party vibe that a lot of other AALs emphasize in their advertising. And there's something about those clear bottles that is very enticing, UV light be damned (I'm smitten with Miller High Life bottles as well).

    And I agree that Negro Modelo is a tasty beer but I was surprised to find that Especiale finished last in a small blind tasting of AAL's I did a while back. I really didn't care for that beer at all.
     
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  13. jmdrpi

    jmdrpi Grand High Pooh-Bah (8,989) Dec 11, 2008 Pennsylvania
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    Probably a mix of that, and confirmation bias about how the beer "must be better" since it's more expensive.

    http://www.winespectator.com/blogs/show/id/New-Study-Wine-Price-Bias
     
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  14. jmdrpi

    jmdrpi Grand High Pooh-Bah (8,989) Dec 11, 2008 Pennsylvania
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    No, nothing in the two articles I read.

    @jesskidden is often up on that type of info
     
  15. meefmoff

    meefmoff Pooh-Bah (1,922) Jul 6, 2014 Massachusetts
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    If you'll excuse the pedantic note, that's not really a confirmation bias phenomenon. That's something more along the lines of what's referred to as trying to minimize cognitive dissonance. We don't want to feel like we've wasted our time or money (dissonance) so we convince ourselves that the thing we spent a lot of money on or endured a lot of hardship to possess must be worth it. A common example is fraternity hazing: if I went through all that to get in here then it MUST be a great place!

    Also, this is completely off topic but that MRI study referenced in the article is a great example of dressing up fairly mundane (if still interesting) data with some "neuroscience" trappings to make it seem more important. Psychology is rife with it these days unfortunately.
     
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  16. jmdrpi

    jmdrpi Grand High Pooh-Bah (8,989) Dec 11, 2008 Pennsylvania
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    A common example is fraternity hazing: standing in line for beer: if I went through all that to get in here then it MUST be a great place!
     
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  17. drtth

    drtth Initiate (0) Nov 25, 2007 Pennsylvania
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    Which is a nice example of cognitive dissonance being reduced.
     
  18. eldoctorador

    eldoctorador Pooh-Bah (2,096) Dec 12, 2014 Chile
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    Corona on tap is not that bad. I prefer bottled bud light compared to Corona by a wide margin
     
  19. Pantalones

    Pantalones Initiate (0) Nov 14, 2014 Virginia

    I had the same experience with Modelo Especial -- had it as part of a blind tasting, my other two beers were Narragansett and Miller High Life. The Modelo was by far the worst, we ended up dumping out the majority of the 24-ounce can because nobody wanted any more of that after taking their first drink. Definitely thought it was a little odd how Negra Modelo is so good while the lighter beer of the same brand is so, so bad.
     
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  20. jesskidden

    jesskidden Grand Pooh-Bah (3,145) Aug 10, 2005 New Jersey
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    Constellation bought a second Grupo Modelo brewery from ABInBev in November, 2016.
     
    #20 jesskidden, Oct 10, 2017
    Last edited: Oct 10, 2017
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