Corona Beer: from a Local Mexican Player to a Global Brand
Corona Beer: From a Local Mexican Player to a Global Brand
The most dominant business characteristic of the global beer industry was stated by Heineken's president Michael Foley: “There is no mystery about brewing beer. Everyone can do it… Beer is all marketing. People don't drink beer, they drink marketing.” Today's competitive beer markets are concentrated with several key multinational players at the top and many thousands of smaller producers ranging from brewpubs to regional breweries. More than 133 billion liters (35 billion gallons) are sold per year—producing total global revenues of $294.5 billion in 2006. While many main markets such as the United States are becoming more saturated, the real growth came from increased consumption in developing countries, especially China, which has now overtaken the United States as the largest beer market in the world.
Grupo Modelo is the number one beer producer in Mexico. It owns several main beer brands of the domestic market including Corona, Dos Equis, and Sol while also exports Corona Extra, Corona Light, Model Especial, Pacifico Clara, and Negra Modelo to the United States market. Since its inception in 1922, Groupo Modelo has shifted its humble aim to focus only on Mexico City and surrounding areas to global markets. Their corporate mission is “To grow as a multinational competitor in the beverage market, inspiring pride, passion and commitment, and generating value for our stakeholders.” In 1997, Corona became the number one selling imported beer in the United States, surpassing Heineken and is now one of the top five selling beers worldwide. However, its top position as the world’s most recognizable Mexican beer was being threatened by ever more intense competition, global consolidation of big players, main markets approaching saturation, as well challenges of international expansion to create sustainable global presence.
Five Forces Analysis:
Threat of Substitution
High – There are many choices
The most dominant business characteristic of the global beer industry was stated by Heineken's president Michael Foley: “There is no mystery about brewing beer. Everyone can do it… Beer is all marketing. People don't drink beer, they drink marketing.” Today's competitive beer markets are concentrated with several key multinational players at the top and many thousands of smaller producers ranging from brewpubs to regional breweries. More than 133 billion liters (35 billion gallons) are sold per year—producing total global revenues of $294.5 billion in 2006. While many main markets such as the United States are becoming more saturated, the real growth came from increased consumption in developing countries, especially China, which has now overtaken the United States as the largest beer market in the world.
Grupo Modelo is the number one beer producer in Mexico. It owns several main beer brands of the domestic market including Corona, Dos Equis, and Sol while also exports Corona Extra, Corona Light, Model Especial, Pacifico Clara, and Negra Modelo to the United States market. Since its inception in 1922, Groupo Modelo has shifted its humble aim to focus only on Mexico City and surrounding areas to global markets. Their corporate mission is “To grow as a multinational competitor in the beverage market, inspiring pride, passion and commitment, and generating value for our stakeholders.” In 1997, Corona became the number one selling imported beer in the United States, surpassing Heineken and is now one of the top five selling beers worldwide. However, its top position as the world’s most recognizable Mexican beer was being threatened by ever more intense competition, global consolidation of big players, main markets approaching saturation, as well challenges of international expansion to create sustainable global presence.
Five Forces Analysis:
Threat of Substitution
High – There are many choices