Greg Koch tweeted about this article, and I couldn’t resist jumping in.
The article shares that Constellation Brands is starting to distribute Corona Light on tap following its purchase from Groupo Modelo after the Anheuser-Busch InBev takeover. This is news because, until now, Corona was only available in those clear, iconic bottles.
So who cares, right? Well, here’s the thing about the beer industry, there are two things that really matter when it comes to growing your brand: shelf space and taps. They’re finite and that’s where the battles rage on.
In order for Corona Light to get a tap at a bar, it needs to displace another beer. And here’s where it gets interesting.
From Constellation’s CEO Robert Sands:
“Think about the craft business, okay? You’re talking about tiny little brands that nobody’s ever heard of outside their city… so yes, that requires a strategy to get people to put taps in on brands… in a crowded and fragmented category.”
He goes on to say that his objective is to get draft sales to 10% from the 2%-3% today. Where will this growth come from? Yup, you guessed it.
His justification: “Corona Extra… turns much better than craft beers, it also grows like craft beers, right? Another reason to give it more space. And it has a higher ring and more profitability to the retailer like craft beers.”
So bottom line: for anyone who thinks that craft beer has won the war, think again. The big boys aren’t just going to stand by and let you win. The fight continues every day in every bar and store in America.
It’s up to consumers to push for what they want. So if your favorite beer isn’t available, ask for it. Demand it. Remember to vote with your wallet.