Grupo Modelo and Modelo Company Essay

Submitted By jeffburnsmavs30
Words: 1675
Pages: 7
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Corona U.S.A
International Business
Tues 12:30
Jeff Burns
Tech ID 00940677

Corona’s pale ale is made in Cervecria Modelo in Mexico. This beer is one of the popular beers sold around the world in a long neck bottle usually with a lime. In the United State Corona is the top sold beer for beer that is imported. The beer was introduced in 1925 by a company called Grupo Modelo.
History of Corona
The Modelo company was started the 1800s but in 1925 this product exploded in Mexico. However the name Corona was used by a Jamaican company before Modelo wanted to use it, but the Jamaican company did not copyright the name and after 50 years of fighting for the name they finally got it. During the 50 years of not having the name Corona out right it was still illegally shipped to states in the southwest part of the U.S with a different style of bottle that was shorter after fatter during the 60s, and 70s. Then in the 1980s the beer changed its bottle to the shape we see today for shipping purposes and has become very popular in the U.S. When the product was first manufactured the Modelo Company was thinking of changing the bottle to be to be darker for shipping and preservation of the product; however that was thrown out the door because the beers color is a great selling point for them. Taking a step back in 1937 the Modelo Company came out with Corona Extra a darker beer that was competing with a drink called pulque. In the next couple year they came out with the label printed straight onto the bottle so there is no paper left behind which is more appealing to customers. In 1950 Modelo teamed with one of the biggest radio stations in Mexico called XEQ, and sent the radio station around the country sponsoring concert tours and other events. After being shipped to the U.S and becoming so popular that in 1986 there was a black market in New York and Denver and the price of the product at this time is unknown. Then in 1989 Corona comes out with a light beer after the U.S citizens expressed their interest in a lighter beer.
U.S. Corona Price Corona is the best imported beer in the U.S but it is only the sixth best beer compared to domestic beers. Corona Extra was the first beer that was introduced in the U.S but when the Modelo Company came out with Corona light and grew to almost 17% of the growth rate for sales. In the united stated there are three different kinds of beer producers, mass producers, imports, and specialty brewers. Anheuser-Busch is the largest mass producer of beer sold in the US with MillerCoors behind them. On the import side there are two major importers of beer, Grupo Modelo and Heineken. This makes the whole market tough to become a top competitor but on the international side Modelo can hold its own. The biggest competitor for Modelo is Budweiser which is hard because Budweiser is brewed in the US. The price of the product is $8.99 for a 6 pack and compared to its competitor at about $6.49 a 6 pack. There are many different reasons that corona have a higher price and they are the import cost and also the label cost but the preservation of the beer is also put a big damper on the price.
U.S. Distridution
In the united states imported beer has become very popular. Any person that is looking for a imported beer in the US can find out at any store that sells alcohol. If someone goes into a store that sells alcohol they can most likely find the beer next to any other imported beer and may also find it next to their biggest competitor budweiser. Grupo Modelo that have products such as Corona and Modelo Especial have been coming up in the beer market. Most Modelo beers are sold in six-packs except for Corona which is sold in a 12-pack. After researching I found that the San Francisco is the number one seller of Corona beer.

U.S. Corona Promotion

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