What Impact Did COVID-19 Have on Sales of Corona Beer in 2020?

Despite the COVID-19 pandemic, Corona beer is still the most valuable beer brand in the world!

The global crisis caused by the coronavirus outbreak had a significant impact on the economy of many countries around the world.

But how did the pandemic affect Corona beer sales? Did the virus have a positive or negative impact on the beer company’s revenue?

Let’s take a look at the data to see how the pandemic affected sales of Corona beer.

Did COVID-19 Affect Sales of Corona Beer?

Corona is owned by Anheuser-Busch InBev, the world’s largest beer manufacturer.

Corona, the Mexican beer, is the world’s most valuable beer brand, ahead of both Heineken and Budweiser.

Since 1998, Corona has been the best-selling imported beer in the United States.

Despite its association with the pandemic, sales of Corona beer did not suffer globally.

Although there was a 12% decline in revenue in the first half of 2020 compared to the same period in the previous year, sales remained steady throughout the rest of the year.

As a result, Corona beer remains the top beer brand on Brand Finance’s list of best beers!

How Were Sales Affected at the Start of the Pandemic?

In China, sales of Corona beer dropped in February 2020.

AB InBev lost around $200 million USD due to the decrease in sales at the start of the pandemic.

The drop in sales was likely due to reduced activity and the restrictions on going outside.

The coronavirus restrictions also affected alcohol sales during Chinese New Year, which is an important time of year for sales.

Many other beer brands experienced a similar decline in sales at this time.

Therefore, the name association was not the primary reason for the drop in sales.

What Caused the Change in Sales?

Contrary to popular belief, the name association was not the primary reason for the decline in sales.

In late 2019, Corona became available on tap in many countries, including the UK.

This led to a surge in sales of Corona beer in bars and restaurants at the end of 2019.

However, when the pandemic hit, bars and restaurants around the world were forced to close, resulting in a loss of sales for Corona beer.

Supermarket sales of Corona beer remained consistent throughout the year, indicating that the decline in sales was due to restrictions on bars and restaurants.

Only 4% of Corona beer drinkers said they would not consume the beer due to its name association with the pandemic.

Therefore, the conclusion is that the decline in sales was not due to the name association, but primarily due to restrictions on bars and restaurants.

Why is the name “Corona” associated with both a virus and a beer?

The term “Corona” refers to a crown or halo-like shape, and it means “crown” in Spanish. The virus was named after its crown-like appearance when viewed under a microscope. Similarly, the beer is also named after its branding image of a crown. This connection between the two is more prominent in English, as “corona” is not commonly used in Spanish.

How did the Coronavirus affect the branding of Corona beer?

During the outbreak of COVID-19 in 2020, many memes were created using the Corona beer logo in a negative light. This caused some negative association with the beer, but it did not significantly impact global sales.

What caused the decline in revenue for AB InBev, the parent company of Corona beer?

The decline in revenue was not due to the negative name association with the virus, but rather because of accessibility. The global pandemic caused lockdowns, which led to the closure of bars, restaurants, and pubs, making it harder for people to buy and drink the beer.

Despite the initial decline, Corona beer remains the most valuable beer brand in the world with consistent sales.

FAQ

1. Did people actually believe that Corona beer caused COVID-19?

No, there is no scientific evidence linking the virus to the beer. However, a survey conducted in 2020 found that 38% of Americans would not buy Corona beer because of the virus outbreak.

2. Did Corona beer sales decrease in 2020?

Yes, according to reports, Corona beer sales decreased by 6% in the first quarter of 2020. This is believed to be due to the confusion and misinformation surrounding the virus and the beer.

3. How did the company respond to the decrease in sales?

Constellation Brands, the parent company of Corona, stated that they would not change the name of the beer and that they would continue to support and invest in the brand.

4. Did the decrease in sales affect the company’s overall revenue?

Yes, the decrease in sales of Corona beer did affect Constellation Brands’ overall revenue. In their fourth-quarter earnings report, they reported a 4.4% decrease in sales compared to the previous year.

5. Did other beer brands also experience a decrease in sales?

Yes, the entire beer industry was affected by the pandemic. Sales of beer, in general, decreased due to the closure of bars and restaurants and the cancelation of events.

6. Are Corona beer sales expected to recover?

It is unclear if Corona beer sales will fully recover, but there has been a slight improvement in sales since the initial decrease. The company remains optimistic and is continuing to promote and market the brand.

7. Did the pandemic affect the production of Corona beer?

There were concerns that the pandemic would affect the production and distribution of Corona beer, but the company stated that they did not experience any significant disruptions in their supply chain.

8. Is it safe to consume Corona beer during the pandemic?

Yes, it is safe to consume Corona beer during the pandemic. The virus is not transmitted through food or drink, and there is no evidence that the virus can survive on surfaces for an extended period of time.

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