Who wants to pick up the dregs?

While the Corona contract has been moved from Foster’s to Lion, its sister brands Negra Modelo and Pacifico are still stuck in limbo. No one seems to want them. Australia’s largest privately-owned brewer Coopers has recently ruled itself out of contention for Corona’s sister brands, rightly feeling miffed that it was not given the big Corona contract (600,000 hl sales in 2011), despite having been invited to its auction by Grupo Modelo. This has led to speculation that Lion could end up with the Mexican beers after all.

We heard on the grapevine that Coopers was offered Negra Modelo and Pacifico after the brands were “overlooked” by Corona’s new Australian distributor, Lion, meaning Lion did not want them. These two brands have sales volumes way, way, way below Corona and will require quite some marketing effort.

Having secured the Carlsberg brewing and distribution deal last month, Coopers must now feel even less inclined to take on these Mexican brands.

Which could mean that Lion’s “no, but thanks” position on Negra Modelo and Pacifico, meanwhile, could have changed to a “perhaps” – if the terms are right.