Corona beer firm reeling after 8% slide due to coronavirus
Damage to share price has become more severe in recent days as infections spread
Corona beer derives its name from the Sun’s corona and has nothing to do with the virus. Photograph: EPA
The novel coronavirus has an unlikely victim – one of the world’s most popular beers.
Corona has become the subject of memes and videos shared on social media as the toll from the virus climbs worldwide. Reports of an increase in online searches for “corona beer virus” and “beer coronavirus” show the Mexican beer hasn’t been able to escape the association. The so-called purchase intent among adults in the US has plunged to the lowest in two years, according to data from YouGov.
The damage has become more severe in recent days as infections spread. Shares of Corona-maker Constellation Brands dived 8 per cent this week in New York. Corona’s buzz score – which tracks whether American adults aware of the brand have heard positive or negative things about it – has tumbled to 51 from a high of 75 at the beginning of the year, said YouGov.
Corona, which derives its name from the Sun’s corona and has nothing to do with the virus, is the third-most popular beer in the US, according to YouGov rankings. Guinness is first and Heineken second.
Another reason for the drop in purchase intent could be the perception of Corona as a summer beverage associated with beach holidays, noted YouGov on Wednesday. It therefore has substantial seasonal fluctuations, it said. – Bloomberg