Despite coronavirus shutting down on-premise sales and Mexican breweries alike, more customers purchasing for their homes have led to an overall increase in many key brands for the Milwaukee area. Purchases of Constellation brands are up 12% over the same time last year. New Corona brands drinks such as Corona Premier, Corona Refresca and Corona Hard Seltzer all performed strongly in the quarter, as did Modelo Especial. Mexico’s shutdown order expired in Early June, and beer production has since resumed normal levels.
Corona Hard Seltzer has already become the #4 hard seltzer brand in the US. Their great taste profile is driving a repeat purchase intent of 80%, and they’re having success in penetrating the Hispanic markets, as compared to other seltzers. CEO Bill Newlands expects that this will be a key growth driver and a major point of differentiation within the fastest-growing demographic in the country. It clocks in at 4.5% ABV and comes in a variety pack with 4 flavors: Tropical Lime, Mango, Cherry, and Blackberry Lime.
Constellation has also announced concurrent initiatives to invest $100 million in Black-owned beverage companies by 2030, donate $1 million to the Equal Justice Initiative, and review its internal hiring and marketing practices. Apart from the justness of these causes, this is likely to increase their market share among Generation Z, 85% of whom expect businesses to have a positive impact on society and are specifically looking for brands that are willing to do that.