It seems in the wake of the Coronavirus scare which has rocked the markets over the past two weeks, many people are beginning to take drastic measures to ensure they are not infected. To the point now that some people have decided to link the Coronavirus with the well known Corona beer. Constellation Brands (STZ), the current brewer of many variations of the beer stated that they are confident customers “understand there is no link between the virus and our business”. As hard as it may be not to laugh at the situation, it is a clear example of how paranoid people are becoming as the virus begins to spread across the US, Europe and the Middle East. “The public-relations agency 5WPR surveyed 737 adult US consumers about Corona”
38% of Americans wouldn't buy Corona beer "under any circumstances" because of the coronavirus, according to a recent survey.
Just to be abundantly clear: There is no link between the virus and the beer. https://t.co/D8fL89Oe0E
— CNN (@CNN) February 28, 2020
The virus has already cost $255 million AUD says parent company Anheuser-Busch In Bev
The total impact of the virus is expected to grow even further as the virus impacts sales and productivity. To make things worse, Constellation Brands have taken a dip in their share price of 20%, as the virus continues it’s bearish trend. Constellation have made some ground this week recovering 7% stabilising at $177.
A marketing poll called the “buzz score” is a measurement of US citizen ratings on whether they have heard positive or negative news on a certain company. Corona beer fell from 75% positive in 2019 to 51% positive in 2020, showing the general perception of the beer giant is starting to diminish due to it’s name/link with the virus.
A good case for Behavioural studies
Before I start, I am obliged to remind our viewers that this is not advice only general commentary from my extensive research in this area.
The way people have reacted to the Beer due to it’s name seems very odd, however theories on how people react due to their external environment is seen quite often in case studies. The external environment has the power to drive people into buying certain products, but at the same time drives them away from others. With the Coronavirus, it seems people aren’t wanting to associate themselves with the beer due to concurrent fears of their current environment. In this case, the theory held true and has evolved into one of the largest beer manufacturers losing millions in revenue and brand reputation. If this is something that interests you there is a great article on Behavioural economics here.
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Written by Tyger Fitzpatrick