Corona Volume Hurting On Higher Prices

Recovery on the horizon?

Constellation Brands said on Thursday that volume was likely down by low single digits in the latest quarter for its Crown Imports unit, which handles Corona Extra and other Modelo Group brands.

The decline follows significant price increases.

Beer Business Daily and Beer Marketer’s Insights both weighed in on the news.

From BBD, which calls Crown an “example in patience”:

What strikes me about Rob's comments are that Constellation doesn’t seem too concerned over Corona’s volume softness after the price increase. Why? Says Rob: “There is a pattern to this in the beer business, as to how the volume leans after you take a price increase, and how it gradually comes back over time as retailers and consumers adjust to it.”

From Beer Marketer’s Insights:

Modelo brands, "continue to experience" some "short-term retraction" in IRI data because of price increases, acknowledged Constellation ceo Robert Sands in conference call. Though hesitant to provide much detail on beer volumes, he said with prices up "around mid-single digits," volume "was probably down low-single digits," for qtr. Price increase was the "right long-term decision" for Modelo brands, he added.

The Constellation release can be seen here.

The BBD home page is here.

The BMI home page is here.