{"id":5048,"date":"2018-10-02T06:00:08","date_gmt":"2018-10-02T11:00:08","guid":{"rendered":"http:\/\/www.beerbusinessunplugged.com\/?p=5048"},"modified":"2018-09-24T08:17:59","modified_gmt":"2018-09-24T13:17:59","slug":"success-is-a-lousy-teacher-it-seduces-smart-people-into-thinking-they-cant-lose-2","status":"publish","type":"post","link":"https:\/\/www.beerbusinessunplugged.com\/?p=5048","title":{"rendered":"Success is a lousy teacher. It seduces smart people into thinking they can’t lose."},"content":{"rendered":"

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Grupo Modelo was founded in Mexico in 1922, and within just three short years the Mexican brewery introduced Corona and Modelo Especial.\u00a0 Now, 93 years later, Grupo Modelo maintains a more than 60% market share in Mexico and is part of ABI.\u00a0 In the U.S., Constellation Brands now owns Modelo, with Corona and Modelo Especial being the number one and number two imported brands, respectively, in the U.S.<\/p>\n

In the last fifty years, perhaps only the success of Bud Light, Miller Lite, and Coors Light, equals that of Corona.\u00a0 In the early 1980s, Corona was packaged in a stubby brown bottle and was predominantly sold in border cities, sales, however, sky-rocked when Grupo Modelo began packaging Corona in a clear long neck bottle.\u00a0 For decades, the brand grew at double-digit\u00a0rates.\u00a0 Fueling Corona’s growth were the sales teams of Barton Beers and Gambrinus. The relationships developed with wholesalers, and increased package additions, which included 12-packs, seven-ounce\u00a0bottles, cans, single serve, and draft, all added to Corona\u2019s sales explosion.<\/p>\n

Modelo Especial’s growth, however, was much slower, taking years to establish a foothold.\u00a0 Part of that sluggish growth was due, in part, to the poor quality of Modelo’s packaging, but also because both importers\u2019 primary emphasis\u00a0was on the growth of Corona.\u00a0 In recent years, however, Modelo has caught fire with some truly effective advertising and support.<\/p>\n

Modelo and Corona are the two great success stories of the beer industry.\u00a0 Wholesalers who have had Modelo for years are envied by their competitors.\u00a0 While Modelo Especial continues to produce double-digit growth, the recent scan data proves that something is happening to Corona.\u00a0 Corona and Corona Light are beginning to show a decline in sales.\u00a0 In fact, Corona Light is down as much as -13% in the recent four-week period.<\/p>\n

Much of Corona’s waning can be attributed to Constellation\u2019s roll-out of new products, including Corona Familiar, and the very successful Corona Premier, targeted at Michelob Ultra.\u00a0 The beer industry has historically shown that when a successful product produces offshoots, the flagship brand begins to lose volume. Or can Corona’s slow decline be attributed to the much-discussed product lifecycle?\u00a0 After over 35 years of growth is the consumer looking at Corona as another product of the past generations?<\/p>\n

Many brewers\u2019\u00a0brand-marketing groups view line extensions as an easy way to add instant volume and increase the brands’ retail space.\u00a0 But perhaps the question is: what is the real cost of line extensions?\u00a0 The argument can easily be made that if the overall portfolio grows, then the brewer wins!\u00a0 The real cost of these extensions, however, might be paid by the wholesaler considering the warehousing, logistics and manpower investments that have to be made.<\/p>\n

The industry can only wonder what other future line extensions are being planned by Constellation brands.\u00a0 Perhaps wholesalers will see Corona Lime, Corona Light Lime or Orange in the coming years?\u00a0 Why not?\u00a0 It seems to be working for Bud Light.<\/p>\n

The next five years will be interesting for the Corona family.\u00a0 Success is a lousy teacher.\u00a0 It seduces smart people into thinking they can’t lose!<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Grupo Modelo was founded in Mexico in 1922, and within just three short years the Mexican brewery introduced Corona and Modelo Especial.\u00a0 Now, 93 years later, Grupo Modelo maintains a more than 60% market share in Mexico and is part of ABI.\u00a0 In the U.S., Constellation Brands now owns Modelo, with Corona and Modelo Especial […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_s2mail":"yes","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_newsletter_tier_id":0,"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[1],"tags":[],"jetpack_publicize_connections":[],"aioseo_notices":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p2xRTi-1jq","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/5048"}],"collection":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5048"}],"version-history":[{"count":11,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/5048\/revisions"}],"predecessor-version":[{"id":5061,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/5048\/revisions\/5061"}],"wp:attachment":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}