Corona Beer: Impact Of A Pandemic On Sales

The COVID-19 pandemic has had a notable impact on Corona beer sales, with some people avoiding the beverage due to its similarity in name to the coronavirus. A survey by PR firm 5WPR found that 38% of respondents would not buy the beer under any circumstances, and 16% were confused about the relationship between the two. This has resulted in a significant decline in the brand's 'buzz score', calculated by YouGov, which has fallen by almost a third. The founder of 5WPR, Ronn Torossian, has described the situation as a disaster for the Corona brand.

People are worried Corona beer spreads coronavirus

People are worried that Corona beer spreads coronavirus. This is not true. However, this has not stopped some people from avoiding the beer. A survey by PR firm 5WPR found that 38% of respondents would not buy the beer "under any circumstances", and one in 20 regular drinkers would stop consuming it. This has resulted in a large decline in the brand's 'buzz score', which is calculated by YouGov based on whether American adults have heard anything negative or positive about a brand.

Ronn Torossian, founder of 5WPR, commented on the situation:

> "There is no question that Corona beer is suffering because of the coronavirus. Could one imagine walking into a bar and saying, 'Hey, can I have a Corona?' or, 'Pass me a Corona'? While the brand has claimed that consumers understand there's no linkage between the virus and the beer company, this is a disaster for the Corona brand. After all, what brand wants to be linked to a virus which is killing people worldwide?"

The situation was exacerbated when Corona released a five-second commercial for their new hard seltzer with a beach and the slogan "Come Ashore Soon". People took to Twitter to call for the ad to be banned and the brand to be punished.

The coronavirus is named after the "coronaviridae" family of RNA viruses, as the virus cells look like solar coronas under a microscope. The beer has nothing to do with the virus, but this has not stopped people from creating racist memes of people of colour drinking Corona beer with distasteful slogans that refer to them spreading the virus.

The beer's brand image has been affected

The brand image of Corona beer has undoubtedly been affected by the COVID-19 pandemic. This is despite the fact that the beer has no link to the coronavirus and does not cause the disease. However, the unfortunate association between the brand name and the virus has led to a significant decline in sales and a negative brand image.

A survey conducted by PR firm 5WPR found that 38% of respondents would not buy Corona beer "under any circumstances", and one in 20 regular drinkers said they would stop consuming it. This has resulted in a steep decline in quarterly profits for the company, with a predicted 10% decline in first-quarter profit. The company's 'buzz score', calculated by YouGov, has also fallen dramatically, from a high of 75 to just 51—a fall of almost a third.

The founder of 5WPR, Ronn Torossian, has stated that the brand is suffering due to the association with the virus. He asks, "What brand wants to be linked to a virus which is killing people worldwide?". This sentiment was echoed by the CEO of 5WPR, who called the situation a "disaster for the Corona brand".

The impact of the pandemic on Corona beer's brand image was further exacerbated by a controversial advertisement for their new hard seltzer, which featured a beach and the slogan "Come Ashore Soon". The ad was met with backlash on Twitter, with people calling for it to be banned and the brand to be punished. While Corona defended its beach-centric campaign, which it had been using for over 30 years, the ad certainly did not help improve the brand's image during the pandemic.

Overall, it is clear that the COVID-19 pandemic has had a significant negative impact on the brand image of Corona beer, leading to a decline in sales and negative publicity.

People are confused about the beer's relation to COVID-19

Corona, the beer, has nothing to do with COVID-19, the coronavirus. However, this has not stopped people from making the association. A survey conducted by PR firm 5WPR found that 38% of respondents would not buy the beer "under any circumstances", and one in 20 regular drinkers would stop consuming it. The survey also found that 16% of respondents were confused about "whether Corona beer is related to the coronavirus". This confusion has led to a significant decline in the brand's popularity, with its 'buzz score' falling by almost a third in just a few months.

Ronn Torossian, founder of 5WPR, commented on the survey results: "There is no question that Corona beer is suffering because of the coronavirus... Could one imagine walking into a bar and saying, 'Hey, can I have a Corona?' or, 'Pass me a Corona'? While the brand has claimed that consumers understand there's no linkage between the virus and the beer company, this is a disaster for the Corona brand."

The situation was not helped by a poorly timed Corona commercial released on February 25th for their new hard seltzer, featuring a beach and the slogan "Come Ashore Soon". The ad was met with backlash on Twitter, with people calling for the brand to be punished. While Corona's leadership pointed out that the beach-centric campaign ad was in line with their marketing over the past 30 years, it did little to alleviate the concerns of those who now associated the brand with the virus.

The association between Corona beer and COVID-19 has had a significant impact on the brand's reputation and sales, highlighting the importance of public perception and the potential for misinformation to influence consumer behaviour.

Constellation, Corona's parent company, suffered stock losses

Constellation, the parent company of Corona beer, suffered an eight percent stock slump in a single day, resulting in tens to hundreds of millions of dollars in losses for the company. This significant drop can be attributed to the negative association between the brand and the coronavirus outbreak.

The survey conducted by 5W Public Relations revealed that 38% of beer-drinking Americans stated they "wouldn't buy Corona 'under any circumstances' because of the outbreak." This sentiment was reflected in the YouGov poll, which showed that consumer "confidence" in Corona beer was at its lowest point in two years due to the virus. The situation was exacerbated by a poorly timed Corona commercial for their new hard seltzer, which prompted a backlash on Twitter, with people calling for the ad to be banned and the brand to be punished.

The similarity in names between the beer and the virus, along with the ongoing health crisis, has dealt a significant blow to the brand's reputation and sales. Ronn Torossian, the founder of 5WPR, summed up the issue, stating, "There is no question that Corona beer is suffering because of the coronavirus. [...] What brand wants to be linked to a virus which is killing people worldwide?"

The decline in Constellation's stock price highlights the financial repercussions of the situation. With consumers avoiding the brand and sales taking a hit, the company has lost substantial revenue. The impact of this negative association is evident in the company's financial performance, underscoring the challenges faced by Corona in rehabilitating its image and regaining consumer trust.

While the company has asserted that there is no link between the beer and the virus, the damage to the brand's reputation has already been done. The survey results and the stock loss highlight the public's perception of the brand during the pandemic.

Corona's new hard seltzer ad was criticised

In early 2020, as the coronavirus was spreading globally, Corona Hard Seltzer released a new ad for its beverage, stating it was "coming ashore soon". The ad was criticised for its timing, with many commenters on Twitter calling it "in poor taste" and accusing the company of exploiting a global health crisis.

The ad was posted on Twitter, and negative comments quickly started to flow in on the brand's page. One Twitter user, Diana, wrote: "Shame on you for exploiting a real global health crisis. Next time we buy beer, it will NOT be Corona." Another user, @iwantlibertees, suggested that the company "lay low for a few weeks" and put the campaign on hold.

Despite the backlash, a spokesperson for Constellation Brands, which owns the Corona beer brand, defended the ad, saying that their advertising "is consistent with the campaign we have been running for the last 30 years and is based off strong consumer sentiment". While they empathised with those impacted by the virus, they maintained that consumers understood there was no link between the virus and the beer company.

However, data from online search trends showed a rise in searches for "corona beer virus" and "beer coronavirus", indicating that some people were confused or associating the two. The brand's selling power also appeared to take a hit, with YouGov's Buzz score for Corona falling from 75 at the beginning of January to 51.

The criticism of the ad and the association with the coronavirus seemed to have a negative impact on brand perception and purchase intent, with some people stating that they would no longer buy Corona beer due to the controversy.

Frequently asked questions