Constellation lowers prices for some Corona brands this summer

USA – When does a price promotion turn into a price cut? The question is pertinent as Constellation Brands, the number three brewer in the US, appears to be discounting Corona family 12-packs of cans in markets across the country for weeks to come.

According to a post on the MillerCoors blog on 22 May 2019, Constellation has cut prices on Corona Extra, Corona Light and Corona Premier by about USD 2 per case, positioning them slightly below bottles. This means retail prices will drop to around USD 23 to USD 24 per case, or USD 13 to USD 14 per 12-pack, depending on location.

The price drop appears targeted for Corona Extra, Corona Light and Corona Premier and is slated to run at least through July, Beer Marketers Insights (BMI) reported. Constellation seeks to get more of its Corona volume into cans, which represent less than 10 percent of total Corona sales, BMI added.

The timing of the discount is purposeful, as the deal will run through the beer industry’s busiest time of the year when shoppers are spending the most. A focus on cans, often touted for their portability, is also key during a season when drinkers are flocking to the outdoors.

The import brand Corona has long been priced at a premium to beer brands such as Bud Light, Coors Light, Miller Lite, as well as super-premium brands like Michelob Ultra. Beer Marketers Insights said that the pricing moves would bring Corona down to or below Michelob Ultra prices.

The discounting comes as Corona importer Constellation Brands attempts to prop up Corona Extra and Corona Light, each of which has shed volume this year. That’s after Corona Extra finished 2018 down 4 percent and Corona Light down 11.5 percent. Insiders think that Corona Extra has fallen victim to “flagship fatigue”, which has seen shoppers migrate to newer beer offerings.

Constellation, like other Big Brewers, has already resorted to a remedial strategy: brand extensions. That the strategy is working is underlined by data. The Corona family of brands saw volume sales rise 7.5 percent in 2018 and is up again this year 1.6 percent on the strength of Corona Premier, which launched last year, and Corona Familiar, which significantly expanded distribution in 2018. Continuing this trend, 2019 will see the launch of Corona Refresca, a “premium alcohol-spiked refresher”, which is a flavoured malt beverage.

As commented the website Good Beer Hunting, the discount and volume play of this summer is bound to look good – but what it means in the long term for these brands remains to be seen.