- March 11, 2019
With brands like Corona, Modelo and Pacifico growing year after year, Constellation continues to dominate the high-end beer segment. And its latest innovation, Corona Premier, is already the 10th best-selling beer in the category.
High-End Means High Profits
While at first glance beer sales have remained mostly flat during the last few years, a closer look reveals that the high-end has been on fire – so much so that experts are predicting that all category growth in beer over the next three years will come from high-end segments. Imports, FMBs and ciders, all of which make up the segment, are offsetting declines in “mainstream” and low-end segments. Constellation’s portfolio of brands accounts for over 50% of the high-end segment’s growth, all on its own. As consumers continue to “trade up”, Constellation gives drinkers choices that best fit their lifestyles. And for 2019, Constellation has even more products coming through the pipeline to extend its winning streak.
Corona and Corona Light continue to drive Constellation’s success, but last year’s launch of Corona Premier had the beer industry buzzing. Believe it or not, Corona Premier is now the 10th best-selling brand in the high-end segment – an incredible achievement for a brand that’s not even a year old. It’s also the #1 high-end share gainer with almost 75% of its volume being sourced from outside the Constellation portfolio. It’s been a strong start for Corona’s first major innovation in over 25 years. Perhaps most surprising is that Corona Premier’s growth has thus far not cannibalized Corona Light’s success. Some markets even saw Corona Light grow in 2018, a sign that the future is bright for both brands.
Billed as a “smooth, perfectly balanced lager with only 90 calories and 2.6g carbs”, Constellation maintains there is still a ton of runway for Premier. In keeping with their ambitious rollout, Constellation recently introduced Premier draught, which will present new opportunities for consumers to enjoy this light beer alternative on-premise. Premier draught will capitalize on the brand’s strong momentum, as well as create healthy incremental volume at retail.
As a brand that’s differentiated by its low carb and low-calorie profile, Corona Premier continues to target mature, sophisticated consumers and it’s the premium choice for health-conscious drinkers.
Three Refreshing Innovations
New from Constellation this year is Corona Refresca, a premium spiked refresher that “brings the tropics of Mexico to you!” Available in Passionfruit Lime and Guava Lime flavors, these new malt beverages (not to be confused with hard seltzers) are sessionable at 4.5% ABV and boast crisp, natural flavors that are never too sweet. In limited test markets, Refresca has been exceeding expectations, especially in the retail chain space.
After a successful first year in the market, SVEDKA seltzers are getting a fresh look and a focused package. Recently reformulated with 6% ABV (up from 4.5%) Ruby Red Grapefruit, Wild Strawberry and Cucumber Lime will all transition to one variety 12-pack, an essential package for any retailer looking for refreshing alcoholic seltzers, blended with premium natural flavors. Also check out new Modelo Chelada Limón y Sal, made with natural lime and salt.
Modelo Tops 100 Million Cases – Is Pacifico Next?
To put it plainly, in recent years, Modelo has exploded in popularity. Over the last five years, it has become the #1 growth family in the beer category and recently topped 100 million cases sold in 2018. And Constellation’s aspirations for this brand remain high. With a new emphasis on media spending, especially through sports and venue sponsorships, Constellation foresees growing awareness and continued success with Modelo’s consumer base.
Constellation is looking to apply Modelo’s winning strategy to make Pacifico the next 100 million case brand. Last year marked the first time Constellation advertised Pacifico nationwide and the investment paid off. In new advertising markets Pacifico grew nearly 20%, making it a top 4 growth brand, with significant runway still ahead. In 2019, Constellation will further increase its media investment behind Pacifico and launch new liquid & package innovations (including 15-pack cans in select test markets) to reach new consumers. So don’t be surprised if you see Pacifico quickly become the next big national beer brand.
With last year’s successful growth and an aggressive strategy for 2019, Constellation’s industry-leading, high end products are prepared to continue to achieve new heights.