Corona Beer Most Valuable Despite Coronavirus
Corona beer was the most valuable beer brand in the world despite the name coincidence with the then-deadly COVID-19 pandemic. This is according to a recent report by Brand Finance released in August 2020 where the beer brand scooped US$8.1 billion in brand value. The report also noted that the most valuable brands in the alcoholic drinks segment in the world could lose a cumulative US$33 billion in brand value as a result of the adverse effects of the Coronavirus pandemic. Different alcoholic drinks will suffer different levels of brand value loss with beer brands likely going down by 20 percent. On the other hand, wines, spirits, and champagnes are facing a potential 10 percent brand loss from the negative effects of COVID-19.
Effects of COVID-19 on Enterprise Value
In this report, Brand Finance assessed the effects of COVID-19 on enterprise value. They compared the current situation with how it was in January 2020. This is before the outbreak of the deadly virus. The pandemic brought about a “new normal” with measures quite difficult for businesses in the food and beverage sectors. These measures include lockdowns, discouraging social gatherings (social distancing), and near-global closures of bars, hotels, restaurants, and other social places. Some countries also banned alcohol sales altogether. Despite off-trade sales in supermarkets and bottle outlets, taking alcohol at home has not really improved sales.
“We are witnessing mixed fortunes across the alcoholic drinks industry as a result of the COVID-19 pandemic,” Richard Haigh, Managing Director of Brand Finance told ESM Magazine, adding that “As bottle shops spike and consumers shift towards consuming alcoholic drinks at home, it is yet to be seen whether this spike can offset the loss and therefore how brands will fare in the coming year.”
Corona Beer Tops 50 Brands
With a brand value of a whopping US$8.1 billion, Corona beer ranks first on the Brand Finance list of 50 beer brands. This is a popular and leading Mexican beer brand. You can enjoy the drink in your country because the brand has a presence in 120 countries across the world. Additionally, the beer enjoys solid sales in all its markets. Whether you are in China or South Africa, you can get your Corona beer in your fav joint. The brand is currently focusing on spreading its wings even further by expanding production in countries such as Colombia, Brazil, Argentina, the UK, and Belgium. In the United States, the brand is targeting new customers and drinking occasions by introducing Corona Premium and Corona Familiar brand tastes. The other type of Corona beer, Corona Refresca is for the alcohol-tinted refresher market.
Corona Beer and Coronavirus in China
China is the biggest market for Corona beer outside of Mexico. Coincidentally, China was the origin and epicenter of the pandemic. The coincidences and combinations of Corona beer, Coronavirus, and China are a little too much. This is made even worse by the initial and strict lockdowns that were in China. Especially when the outbreak was just starting. This means that Corona beer in China witnessed huge drops in sales. However, it is now absolutely clear to consumers that Corona beer and COVID-19 do not have any link. There is no reason to associate one with the other.
Other Beers Mentioned
The report also ranks other drinks as follows.
- Tuborg is the fastest-growing beer brand in the world. This is because it rose 26 percent in brand value to US$968 million. The Danish brand enjoyed a strong sales year with huge markets in China and India.
- Budweiser is the world’s strongest beer brand with a US$6.4 billion brand value despite going down 16 percent. In addition to this, it scored a Brand Strength Index (BSI) score of 85.2 out of 100.
- Chinese Baijiu brands dominate in the spirits category.
- Baileys is the fastest-growing spirits brand with a 105 percent growth to US$1.3 billion brand value.
- Don Julio roars strongest in the spirits soaring up 79 percent in brand value to US$958 million with a BSI score of 88.7 out of 100.
- Moët et Chandon with a brand value of US$1.4 billion is the most valuable brand in the champagne & wine sector followed by Chinese Changyu with US$1.3 billion.
