Case 13: Carona Beer

Case 13: Corona Beer: From a local Mexican player to a global brand

BUS 599- Strategic Management
Strayer University – Chesapeake

Identify and discuss the trends in the global beer markets.
Grupo Modelo has the opportunity to use its Mexican roots to capture the large beer-drinking markets in Mexico and in the population of Mexican immigrants to the U.S. There is increasing popularity of light beverages and flavored alcoholic beverages, so it may be beneficial to invest in development of these alternative products. Also, Grupo Modelo may potentially benefit from partnership with Anheuser-Busch as it merges with InBev. This could allow them to continue to expand into other international markets, benefit from economies of scale and distribution networks, and benefit from strong brand recognition.
Discuss how Modelo’s international expansion was made possible through strategic partnerships with experienced distributors in local markets.
      By expanding internationally into the United States and Canada, Grupo Modelo has already responded to the potential threat created by the volatile Mexican economic and political environments. It is recommended that they further expand internationally to further diversify these risks. To further expand internationally, Grupo Modelo is encouraged to continue its model of contracting with a distributor in the target region. This strategy has benefited the company because the local distributors are able to brand the beers to their local market needs. I believe that China and Australia are two markets that have great potential for demand of Grupo Modelo's beers. China recently surpassed the U.S. in total beer consumption. There is a huge population that is potential for demand. Australia already has high per-capita consumption of beer, so it might be an easy market to enter especially considering the match of brand image of Corona to the typical image of Australian beaches.
      Within the United States, Grupo Modelo has...