Protecting Our Economic Health Despite Corona
Over the past decade, the number of bars for beer has fallen by nearly 20%, and Corona is the
largest brewer in Mexico, second only to Tequila. But Corona’s economic health is questionable;
sales revenue has declined over the past few years as distributors struggle to keep prices low.
The same is true of premium brands such as Mariscos, a grape that accounts for half of
Corona’s volume. While the market is competitive, we can’t overlook the economic
consequences of Corona’s popularity with consumers: the high price of a drink that comes from
high quality, cheap grown grapes isn’t necessarily a good idea for overall economic
So, why is it that Corona is such a bad idea for economic development? The short answer is
this: High priced drinks don’t boost overall economic health. As economists note, “price growth
linked to beverage sales tends to bring about short-term fluctuations that can have far-reaching
impacts on growth and employment.” In other words, if companies continue to increase prices on
popular products such as Corona, they will be hurting the value of the goods they produce.
What’s more, high-priced products typically do not create more employment. For example, if
companies continue to charge outrageous prices for soft drinks, it is likely that fewer people will
be able to afford them. This means that the overall economic health will suffer. Is that something
you want to happen? I’m not saying that investing in premium beverages is a bad idea; but it is
something that I would not recommend.
In order to better understand why Corona is a bad idea for economic development, it’s important
to review what factors go into the pricing of high-end beverages. Typically, premium drinks such
as Coronas are sold by weight. That is, you pay for the weight of the beverage. When you
purchase a single drink, you are only paying for that single unit – regardless of whether or not the
glass is half-full or not. If you were to purchase that same bottle of Corona at a supermarket, you
could easily spend three times the amount you would pay for at the store.
Why should we care about preserving our economic health? Why shouldn’t we just continue to
buy low-priced products to provide for our families? The answer is simple: because high prices
force consumers to look for other options. In other words, the high price of a product makes it
“unaffordable” for the average person. If people are not able to purchase the items they need,
they simply look for cheaper solutions. This process of “shopping around” costs us money,
reduces employment, and decreases overall economic performance.
So how can you invest in your economic health while still enjoying a great tasting beverage? If
you own a restaurant or operate a bar, you may want to consider investing in premium products
such as Corona. By doing so, you will be able to offer an even better service to your customers.
Even if you serve regular blends, you may want to invest in one of the higher-quality offerings
from Corona’s parent company – notably their Fern Loco Fresco Blended Light Beer. By offering
drinkers another option, you will be taking steps to ensure that your business remains profitable.
Another way you can protect our economic health despite Corona? Try raising the bar. Start
offering cans of Green Tea with your regular beverage, or perhaps include a can of Grey Goose
in your menu. By offering drinkers something a little different, you will be encouraging them to
spend money – which, in turn, creates jobs in America (as many restaurant and retail workers
Whether you choose to drink Green Tea or Grey Goose, try to provide it to as many people as
possible. After all, Corona represents one of the easiest beverages to market. It’s beverage
people are familiar with, easy to brand, and delicious! With the right strategy, it is entirely
possible to increase sales while protecting our economic health.