"The last thing we want to do is switch a Corona Extra bottle drinker to draft," said Sabia. Given the brand's well-known association with its bottle, Crown is proceeding cautiously with Corona Extra, limiting the test to three markets.Ĭrown officials said they will be watching closely to understand the impact on the marketplace. While Corona Light is going national, Crown will begin testing the flagship Corona Extra brand on tap for the first time in the United States. "We believe the consumer's palette is beginning to change and it's getting more sophisticated. "Corona Light has 18 IBUs (International Bitterness Units), a lot of the other premium light beers have 8, 9, 10 IBUs," said Sabia. Corona Light draft will be featured in two television commercials during its March rollout and again in the summer selling season with a marketing campaign that portrays Corona Light as the beer for "when you're ready for a light beer that tastes like a beer." Part of the pitch in getting beer drinkers to trade up will be taste. ( Read more: Get ready for a beer cocktail boom ) beer market, and Bud Light and Coors Light are the top-selling beer brands.Ĭrown sees an opportunity in the numbers, provided it can convince consumers to trade up from their domestic premium light beer to an imported premium light beer. While the struggles of the light beer category have been well-documented, it still remains the largest segment of the U.S. The hopes are highest for Corona Light draft, with Constellation CFO Bob Ryder saying on the company's most recent earnings call in January that Corona Light is expected to become its biggest draft brand, a position currently held by Pacifico. Constellation shares are up nearly 50 percent in the past six months, and Crown Imports is coming off a strong third quarter, with overall sales growth of 21 percent and total draft sales increasing more than 30 percent. While the off-premise boost is important, the real opportunity lies in growing the draft presence of the Crown Imports portfolio, which in addition to the Corona brand, includes the Modelo, Pacifico and Victoria brands, among others.Īccording to company officials, draft sales currently account for less than 2 percent of the Crown portfolio's overall sales, versus the industry average of 10 percent.Ĭonstellation Brands has been on a tear since completing its acquisition of Crown Imports this past summer.
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"We're seeing a very traditional beer experience with consumers going into the bar, sampling the product on draft, and then seeing it off-premise and making a purchase," said Sabia. What the company found was a halo effect, which carried over from draft on-premise at bars and restaurants to off-premise stores.
( Read more: Why cider is the best thing to happen to beer )ĭuring its limited rollout, Crown watched carefully to make sure the Corona Light draft option didn't hurt bottle sales. "So we're excited for what Corona Light draft does to our overall business in building our consumer franchise." "We've actually seen in all the markets where we do have draft, our business increases about 12 percent overall versus markets where we don't have draft," said Jim Sabia, chief marketing officer at Crown Imports. The timing allows the brand to boost its draft presence in advance of the Cinco de Mayo holiday and the crucial summer selling season.