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Constellation Brands Wants More Beer, Less Wine in 2019

Discussion in 'Beer News & Releases' started by Todd, Apr 15, 2019 at 1:17 PM.

  1. Todd

    Todd Founder (5,663) Aug 23, 1996 California
    Staff

    More: https://www.fool.com/investing/2019/04/14/constellation-brands-wants-more-beer-and-less-wine.aspx
     
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  2. jesskidden

    jesskidden Meyvn (1,440) Aug 10, 2005 New Jersey
    Society

    From "The Fool" article:
    That claim was kinda eye-opening, although that "beer franchise" terminology isn't a common one and is sort of vague.

    MillerCoors' total barrelage in '17 was 52M bbl., Constellation's was 19M bbl. Both figures, obviously, include brands other than Corona and Coors.

    What the Constellation presentation actual said was:
    Again, vague - "short order" - but still pretty impressive, since Coors Light, the #2 US beer, was outselling Corona (#5) 2 to 1 only a couple of years ago. But Corona's got more "family members" at 5 than the Coors brand (Light and Banquet).
     
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  3. billandsuz

    billandsuz Disciple (384) Sep 1, 2004 New York

    Motley Fool does not mention Ballast Point. Which is almost impossible to miss in an article about Constellation increasing it's share of beer revenue. (Motley Fool never impressed me, it's typically a lot of fluff and "Can't Believe This New Invention That Is Going to Revolutionize The Way You Do This Thing").

    A rep at Constellation relayed that they weren't all that impressed with what Ballast Point is doing sales wise. But for $1,000,000,000 what do you expect?

    But, yeah. Taking down Coors Light with Corona is pretty spectacular and the shirts in Golden can't be too happy about it.
     
  4. MNAle

    MNAle Meyvn (1,398) Sep 6, 2011 Minnesota
    Society

    I guess people like to imagine they are on the beach rather than in the mountains...
     
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  5. AlcahueteJ

    AlcahueteJ Savant (931) Dec 4, 2004 Massachusetts

    They also have a new commercial on the radio that says, "How do I know my Coors Light is cold? Because the mountains on the can are blue...also because I'm holding it and can feel it's cold."

    It's almost as if they call themselves out in the commercial for how dumb the blue mountains on their cans are.
     
  6. stevepat

    stevepat Zealot (526) Mar 12, 2013 California
    Trader

    Fewer ad campaigns have been less successful than this one on me. I don't think I've drank a Coors light since they added the color changing mountains.
    Nothing says good beer like an indicator to let you know when it's cold enough to lack all flavor
     
  7. Oktoberfiesta

    Oktoberfiesta Aspirant (257) Nov 16, 2013 New Mexico

    Corona is their saving grace. I dont think BP has done much for them these past few years.

    They're snakes though. Blaming cheap wine and then trying to only go after the greater than $11 high margin segment. Average sales prices are rising. They're happy. Why not just make a good product? They're seeking margins over any sense of quality.

    They may get away with all that with wine and Corona. But craft beer prices $3-6 more than others? Yeah. That's not gonna work out. They're able to upsell their Corona brands at a premium.

    Sculpin has only dropped $2 since their takeover. It's just not moving at $13/six. Their whole portfolio is high margin but not quite fast selling anymore.
     
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  8. joerooster

    joerooster Initiate (27) May 15, 2018 Virginia

    I'm seeing the same, only about $2 cheaper and I don't think it's as good as it once was. If it were priced like the majority of other IPAs on the market at $8-11 per sixer or put into reasonably priced 12 packs ($15-20), I'd buy it regularly as it is definitely better than most shelf beers in my area. Freshness also seems to be an issues but I'd assume that has to do with the beer not selling well.
     
  9. BayAreaJoe

    BayAreaJoe Crusader (731) Nov 23, 2017 California
    Society Trader

    Don't forget about Modelo, it's a top 10 beer and the fastest growing beer brand in America for the past 6+ years. BP's definitely been slipping with their out-of-wack pricing compared to pretty much all other WCIPAs on the shelves, but Corona & Modelo have both been going gangbusters for quite a while.
     
  10. AlcahueteJ

    AlcahueteJ Savant (931) Dec 4, 2004 Massachusetts

    Or mask the flavor...:wink:
     
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  11. stevepat

    stevepat Zealot (526) Mar 12, 2013 California
    Trader

    Does constellation own any crafty brands besides ballast point?
     
  12. Samlover55

    Samlover55 Champion (888) Oct 8, 2015 New York
    Society Trader

    Funky Budha from Florida
     
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  13. stevepat

    stevepat Zealot (526) Mar 12, 2013 California
    Trader

    Hmm never heard of them. I wonder if they plan to acquire more beer brands with this freed up capital or just push their existing brands
     
  14. JackHorzempa

    JackHorzempa Poo-Bah (3,901) Dec 15, 2005 Pennsylvania
    Society

    And as a BA I find it vexing why beer consumers are willing to pay so much for Mexican AAL beers. Why not just buy beers like Hamm's or Miller High Life? Those beers are even better in quality IMO and waaaayy cheaper.

    I suppose folks just have a strong need to "find their beach"!?!:confused:

    Cheers!
     
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  15. meefmoff

    meefmoff Zealot (573) Jul 6, 2014 Massachusetts
    Society Trader

    I don't buy Corona myself but just aesthetically speaking I do find those handsome etched clear bottles combined with the high res beach imagery and serene ocean sounds to be a pretty great marketing scheme.

    If I was otherwise inclined to buy beer from that general segment of the market I imagine the ads might work pretty well on me.
     
  16. Samlover55

    Samlover55 Champion (888) Oct 8, 2015 New York
    Society Trader

    There is an assumption out there that imported beer=better beer. A prime example of this is Stella Artois ("you don't like it? but it's a Belgian"), but Corona has that allure as well.
     
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  17. Ranbot

    Ranbot Zealot (567) Nov 27, 2006 Pennsylvania

    Pleasing design is part of it, but price is also. The consumer believes it's better because they paid more for it, which has been proven over and over again in studies, like this: https://www.caltech.edu/about/news/wine-study-shows-price-influences-perception-1374
    Humans are not rational, we just think we are.
     
    #17 Ranbot, Apr 15, 2019 at 7:38 PM
    Last edited: Apr 15, 2019 at 7:52 PM
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  18. Mongrel

    Mongrel Crusader (741) Feb 14, 2013 Maryland
    Trader

    I started adding a wedge of lime to High Life bottles last summer and will never look back. So good (and cheap)!
     
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  19. meefmoff

    meefmoff Zealot (573) Jul 6, 2014 Massachusetts
    Society Trader

    Agreed, though I'd personally be an outlier on that due to my extreme case of cheapskatism :slight_smile:.
     
  20. ClemsonMike

    ClemsonMike Initiate (89) Aug 13, 2010 South Carolina

    Constellation Brands also owns a 37% stake in Canopy Growth which is a large cannabis grower.
     
  21. Beer_Stan

    Beer_Stan Initiate (82) Mar 15, 2014 California
    Trader

     
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  22. rgordon

    rgordon Savant (909) Apr 26, 2012 North Carolina

    "Otherwise inclined" is a rife comment And I like it.
     
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  23. MNAle

    MNAle Meyvn (1,398) Sep 6, 2011 Minnesota
    Society

    Corona's advertising emphasizes tropical beaches yet if you are actually on a tropical beach outside of the USA, Corona beer from Constellation Brands won't be available.
     
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  24. AlcahueteJ

    AlcahueteJ Savant (931) Dec 4, 2004 Massachusetts

    Years ago we conducted a blind tasting of AAL's, and included Corona. Corona came out on top.

    Personally I do prefer Mexican AAL's such as Modelo Especial and Corona.

    I agree with your post, but I dunno, they do taste different to me. However, not enough that I'll always reach for a Corona if I'm craving an AAL.

    More expensive products taste better...always. :wink:
     
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  25. oldbean

    oldbean Aspirant (298) Jun 30, 2005 Massachusetts

    Yeah, it’s also a signaling/tribal thing. So much of advertising is about not what the product is or does, but what kind of person uses this product. You’re not some college bro or some blue collar knuckle dragger, you’re a successful young professional who goes on nice vacations. The beer that fill the differently-styled cans of those three hypothetical brands might as well all be filled from the same tank.

    (Oh yeah, and to everyone who wants to mock people for being susceptible to these kinds of pitches... you bought your car just because it got the best gas mileage, right? People who think they’re too smart to be conned make the best marks.)
     
    #25 oldbean, Apr 16, 2019 at 1:00 AM
    Last edited: Apr 16, 2019 at 1:05 AM
  26. JustinMcInerny

    JustinMcInerny Initiate (17) Sep 5, 2013 Maryland

    I am not a fan of Corona but, in my experience, Corona has incredibly broad appeal to all kinds of people regardless of race, ethnicity or income. Everybody seems to buy it. I sell a lot of Corona to upper middle class/wealthy, highly educated white suburbanites and I sell a lot of Corona to Latino laborers and restaurant workers who are at the other end of the economic and education spectrum. I also sell a lot of Corona to people in the middle of these two extremes. I would be interested to see some formal statistics about who buys Corona. I agree that the marketing and packaging is appealing.
     
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  27. JackHorzempa

    JackHorzempa Poo-Bah (3,901) Dec 15, 2005 Pennsylvania
    Society

    While I can see the cultural allure here I would think that choosing a more economical AAL beer would make more sense. I suppose this is another data point towards the statement by Randy (@Ranbot) of "Humans are not rational".

    Cheers!
     
  28. jvgoor3786

    jvgoor3786 Poo-Bah (1,559) May 28, 2015 Arkansas
    Society Trader

    In the late '90's I drank A LOT of Corona in this great Mexican restaurant with a bar in the basement that offered free chips and salsa. Loved that bar. I don't drink much Corona anymore. I do eat chips and salsa though.
     
  29. anitalonso93

    anitalonso93 Initiate (27) Tuesday Spain

    But then you go online and seems like everyone hates it..

    I feel like on online forums like this one or reddit, every time someone posts that they like Corona they get criticized or stereotyped (womanly, young, beer novice). Kind of a discouragement for people who genuinely like the brand.
     
  30. John_M

    John_M Moderator (6,299) Oct 25, 2003 Oregon
    Society Trader

    I agree that's pretty dumb, but really no worse than this:

    "And every time you decide a Tuesday should feel like a Saturday, a Corona gets its lime."

    Most of the beer marketing I see on TV seems pretty dumb to me, or at least pretty juvenile, so I tend to just ignore all of it at this point.
     
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  31. MNAle

    MNAle Meyvn (1,398) Sep 6, 2011 Minnesota
    Society

    People getting criticized or stereotyped for what they post in the Internet? NOOOOO! Say it ain't so!!! :astonished:

    :wink::grin:
     
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  32. AlcahueteJ

    AlcahueteJ Savant (931) Dec 4, 2004 Massachusetts

    Ha, true, it's corny, but it's catchy.

    And at least it's just a phrase, not a gimmick.

    Although I just can't get past that stupid, "Dilly dilly" slogan.
     
  33. John_M

    John_M Moderator (6,299) Oct 25, 2003 Oregon
    Society Trader


    These are opinion driven forums, and a lot of folks on BA are (surprise, surprise), pretty opinionated. So don't take it to heart if you hear the occasional criticism of your beer of choice. :sunglasses:

    I don't personally enjoy corona, but I know plenty of people who do. It doesn't make them any sort of pariah in my book (though depending on the situation, I might give them a hard time about it... all in humor).

    I can't speak for everyone on BA of course, but will make a general observation anyway, about the way many people on BA perceive beer.

    We all have different tastes, so it's to be expected that we're not all going to agree as to what characteristics make a beer enjoyable. That being said, there's certainly a perception (you can decide whether it's accurate or not) that many of the mass produced adjunct lagers you see on the market today are popular not so much because of the quality of the beverage produced, but because of the huge amount of money spent by the big boys on advertising and marketing (convincing consumers that drinking their beverage will make them attractive, smart, successful with chicks, and better able to get in touch with their inner beach). If you buy into that mindset (and I'll freely admit that I do), then of course you're going to harbor a certain degree of skepticism when you hear someone touting the charms of a beer like corona.

    On the other hand, if you really do enjoy a beer like Corona extra, then who cares that others might not share your passion for the beer? If you stay on BA long enough, you'll find plenty of members who enjoy a cold AAL every now and again, and some who swear by them (and have no interest in the latest hazy IPA or adjunct laden, barrel aged pastry stout).

    For whatever it's worth, my feeling is that you should just drink the beer you like and not worry about what others may think about your beverage of choice. As mentioned above, I don't personally enjoy Corona (I think it's overpriced swill), but it doesn't bother me in the least that you like it, and I encourage you to keep on drinking it, and keep on enjoying it, no matter what I or anyone else thinks about the beer.

    Cheers!
     
    #33 John_M, Apr 16, 2019 at 9:43 PM
    Last edited: Apr 16, 2019 at 9:53 PM
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  34. Rdubya87

    Rdubya87 Initiate (43) Feb 10, 2014 California

  35. AWA

    AWA Aspirant (219) Jul 22, 2014 California

    They do. Because snow sucks.
     
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  36. MNAle

    MNAle Meyvn (1,398) Sep 6, 2011 Minnesota
    Society

    IMO, advertising is effective, perhaps very effective, in convincing a beer drinker to buy a Corona vs a Coors, (for example) but considerably less effective to the point of being ineffective in convincing a beer drinker to buy a Corona instead of a Todd the Axeman (for example).
     
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  37. FatBoyGotSwagger

    FatBoyGotSwagger Meyvn (1,223) Apr 4, 2009 Pennsylvania

    Are you comparing Negro Modelo with hamms? That is funny.
     
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  38. BayAreaJoe

    BayAreaJoe Crusader (731) Nov 23, 2017 California
    Society Trader

  39. gatornation

    gatornation Poo-Bah (4,823) Apr 18, 2007 Minnesota
    Trader

    Your argument is effectively ..ineffective.
     
  40. John_M

    John_M Moderator (6,299) Oct 25, 2003 Oregon
    Society Trader

    LOL! I would agree with your assessment.