[American Marketing Association Annual Conference] [Resiliencein a Sea of Change]
JOHN ALVARADO: As Sean shared with you, [John Alvarado,VP of Brand Marketing] I've had the pleasureof working on Corona Extra for the last couple years.And what's funny about that is, I'mgoing to share an insightful story as to why it's funny,I should say.So I've been at Constellation Brands now for eight years.We have a great portfolio of beer brands.And I was on this rocket ship, Modelo Especial,literally doubling the business, and all kinds of upset.
JOHN ALVARADO [continued]: My boss calls me into his office and says,hey, why don't you have a Corona with me.I'm like, oh, this is not good.I've been through these before.And the conversation essentially goeslike this-- I need you to now work on Corona Extraand steward this iconic brand.And I was like, that doesn't sound like a lot of fun.And the reason I say that is because, as you probably
JOHN ALVARADO [continued]: could get up here and give a presentation on Corona,there seems to be really not a lotto do with this great brand, right?It's well defined.[Corona Extra]Harvard's written business case studies.We've all read the trades.It's like a story that, honestly,a 21-year-old probably can relate to and also speak to.There's this beautiful iconographythat goes with this brand that is well established.
JOHN ALVARADO [continued]: So when you think about marketing,you think about brand positioning,unique product differentiation, all these wonderful things.And so I had some fun with my boss.That shit's been done.Like, I don't want to-- you know,it feels like it's been done before.100% awareness.[Corona Extra]That's a lot about this brand.Top of mind awareness, very high in the category.Trial, very high.
JOHN ALVARADO [continued]: Someone has tried a Corona over the last 52 weeks,pretty much guaranteed.So that's the starting point.So the other side of that conversationcould have been, well then, shit, this is going to be easy.Like, I just walk in, do some cool commercials.I can take a little walk to the park,and just enjoy a Corona, literally during the day,because it's all well said and done.
JOHN ALVARADO [continued]: But as the topic of this insightful conversationwe're about to have, it's about resilience.So a lot of the landscape had changed.And I'll get into that right now so youcan have some appreciation of basically what'sgoing on in the beer industry.So the beer industry and, of course, I'vegot to bring it back home, is experiencing
JOHN ALVARADO [continued]: really rough waves.[BEER INDUSTRY IS EXPERIENCING ROUGH WAVES]This picture is probably not as poignant in termsof really capturing what's going on right nowfor those of us who live this day in and day out.And there's four key things that are happening.So let me get into it.The first is, it starts with the consumer, right?There's truly a new generation of beer drinkers.[NEW GENERATION OF BEER DRINKERS]And they are really reshaping howwe, as brand marketers in the beer world,
JOHN ALVARADO [continued]: as well as distributors and retailers, go to market.There's two key things I'll tell you,and I could spend all lunch talking about it, but I won't.There are two key things.One is, historically, and you can probablyrelate to this, when you were graduatinginto the bev-alc-- alcoholic beverageconsumption-- 21 of course-- you usually started out with beer.
JOHN ALVARADO [continued]: Beer.You've got your taste buds, you're acclimated so to speak.And then you moved up and you graduated to spiritsand then wine, and so forth.And then you refined your palate, if you will.Well, this generation has grown upwith a variety of products that have helped them reshapetheir palate, so to speak, and nowwhen they enter the beer-- beverage-alcohol world-- excuseme, at the age of 21, they no longer
JOHN ALVARADO [continued]: are following that historical path.They are now walking into the categorylooking at beer and high-quality beer, by the way.They're also looking at wine and looking at spirits.So now that easy historical, so to speak,consumption behavior has changed.And then the other part of that is their brand considerationsets have significantly increased.
JOHN ALVARADO [continued]: So whereas consumers had-- and wehave the data on this-- six to eight beers thatwere kind of go-to beers, that's more than doubled.We're looking at a consideration set, by the way, of at least 12to 16.So two consumer trends that, really,when you're selling one beautiful product,that's not even playing to our favor.
JOHN ALVARADO [continued]: The other piece that's happening right nowis-- and I'm sure we've all talked about this-- the twolarge cohorts or the two big consumer segmentsthat are influencing the beer industry-- Hispanics.[HISPANICS GROWING TO 1/4 OF US POPULATION MILLENNIALS "IS ITCOOL?" instead of "HOW MUCH DOES IT COST?"]So you guys all know about the growth rates and allthe wonderful things that they arehelping to drive in terms of our economy.Well, that's good.
JOHN ALVARADO [continued]: The part of that that's beneficial-- I'llbe honest-- with Corona is that they prefer beer 2 to 1.Or actually, that's not true.Sorry.About 150 index, 2 to 1 imports to domestics.So very high consumption.Premium products tend to be kind of in their core competency,and that's good.However, they are also changing.As they acculturate, as they really
JOHN ALVARADO [continued]: find what I call their way and really startestablishing their own way of doing things,their consideration sets have also broadened.So whereas we had really a kind of core consumer,really in love with us, they have now said,well yeah, I love you Corona, but I'vegot to check out this other product over here.Or how about this spirit-- something in the spirits world.So that's like, whoa.
JOHN ALVARADO [continued]: Hey, wait a minute.Don't go far.You gotta stay home.Come on.The other part is millennials.This is the largest cohort since the boomers,and they truly are feeling empoweredand are really walking into the beerworld with high expectations and really wide variety in termsof consumption sets.So they are looking for variety.They are looking for products that actually
JOHN ALVARADO [continued]: make them feel emotionally better, in terms of happiness,products or brands this speak to them and for themin some cases.So really challenging in terms of brandsthat need to really stay on top.And then the other key point herein terms of consumer trends that are occurring in our categoryare flavors.
JOHN ALVARADO [continued]: So a generation that has grown up on--and you guys can go to the nonalcoholic beverageof any 7-Eleven or retailer, and you'llsee doors of, whether it be sports drinks, energy drinks.Milk has got some of flavors.So a lot of things in terms of flavor proliferation,in terms of driving what their expectationsare when they walk into the beer category.
JOHN ALVARADO [continued]: So consumer has shifted, right?So you've got some change there.Well, the other part that it's influencingis the category therefore has become more complex.Ten years ago, and this is a little more than 10 years ago,[14 YEARS AGO - TODAY]and we've got shopper data on this is,literally the category is very simple.There's domestics and then there's imports.So very simple, we like it, we're the number-one import.
JOHN ALVARADO [continued]: We're positioned well to win there.Well, and I'm just kind of boxing it up there,but there's really four-- now youhave flavored malt beverages, you've got craft beers.And that's just being mild, and really Ithink the next picture really captures what'sreally happening at shelf.So consumer behavior is shifting while retailers are alsotrying to shift.
JOHN ALVARADO [continued]: Beer category is a big business for retailers.And they're looking at it as a way to really differentiatethemselves versus their competitionthat's maybe across the street or a mile away.So they're trying to bring in all those thingsthat they think consumers want.So new products,[RETAILERS]flavors, crafts.That's an actual beer aisle right there.
JOHN ALVARADO [continued]: And if I showed you a picture years ago,it would be far simpler.And then the other part is bars.If you go to a bar here at the Marriott,we're at-- some of us had a little beeror two last night-- you go up to these tap panels,and there's stuff on it I don't know even know,and I'm in the category.So it's interesting, because they're alsotrying to appeal to consumers.
JOHN ALVARADO [continued]: And then the other part that it influences our distributors.[DISTRIBUTORS]So the way we go to market is we'rein a three-tiered system that was established back whenwe came out of prohibition.So distributors are key partners of ours and reallya key partner to be successful.Well, they're also responding.And now because the retailer is saying,hey, I need you to bring this in for me, they're saying,
JOHN ALVARADO [continued]: OK, I've got to sell it.So their warehouses, and we walkedthrough then, the inventory that they're carrying is amazing.As they would say, they have SKU-mageddon going.So you think about their share of mine, right?There's only one person.It's one person, literally, with-- obviously, theyhave teams, but one person can only do so much.So now you have to not only break through
JOHN ALVARADO [continued]: from the consumer standpoint, you'vegot influence retailers and say, hey, look.The 12-pack of Corona Extra is your number-one sellingpackage, bar none, in the category.And that's a fact, by the way.But I have to remind them of that.And distributors also need to be influenced in the sense of,here's what we have to offer you to helpyou to win and be successful.
JOHN ALVARADO [continued]: So when you put energy and effort behind Corona Extra,it's going to pay off.That's what they need to be reassured.So those are three dynamics, and then the fourth one,of course, which we all experienceas marketers, the competition.[COMPETITORS- USA - Lagunitas Enters JV with Heineken Global]The competition is not just stayingon the sidelines saying, oh, I see the same consumer trendsas you do, so I'm not going to worry about.No.There are a lot of things happening, from JVs
JOHN ALVARADO [continued]: that are being formed, recently announced, to crafts,of course, which they get more press every day in termsof everything that's coming out.And then also competitors in terms of new products,a lot of which I'm blurring the categoriesin terms of flavored malt beveragesas well as standard beer, if you will.So that's the sea of change that is occurring and made my job,
JOHN ALVARADO [continued]: frankly, a lot more interesting.So let me tell you what's going on from our-- bringing itcloser to home then.From a Corona Extra standpoint-- this is year to date--[CORONA EXTRA SIGNIFICANTLY OUTPACING TOP 5 BEER BRANDS]we are actually outpacing the other top-five major brands.And, as you can see there, outpacing them significantly.Great momentum in terms of what's going on.The other piece of this is that momentum,
JOHN ALVARADO [continued]: and this doesn't quite encapsulate all the growththat's going on, but that momentum is nowgoing on its fifth year.I only have four up there, but just work with me.[MOMENTUM HAS ACCELERATED]But the bottom line is, it's been growing and acceleratingyear after year, almost doubling for the year to date.So sea of change, I walk in with an iconic brand,
JOHN ALVARADO [continued]: getting great results.So how do we do it?What's going on?So what's happened is,[HOW ARE WE DOING THIS?]we did a lot of-- so when I took this role, one of the thingsis to, it's like I said, it's really easyto kind of sit back and say Corona Extra, well defined,I'm all good.But the fact of the matter was, had a lot of conversations,
JOHN ALVARADO [continued]: both internally with distributors, retailers,talked our salespeople to understandfrom their perspective what's going on,what's working and not working.Also looked across everything we were doing.So we pressure tested every activitythat we were putting out in the marketplace to seehow does that match up with the consumer understandingthat we have?And, frankly, there were some gaps.
JOHN ALVARADO [continued]: So let me start sharing a little bit about some of these gaps.The first one was-- this wasn't a gap.I shouldn't say this, but the fact of the matteris, you've got to attract the right talent.So looking at[ATTRACTING RIGHT TALENT]the team that I had, both in internal and external,to make sure, OK, do we have the right teamto really go out and win the war, so
JOHN ALVARADO [continued]: to speak, to win the battle?And so I would recommend that, while you can influencecertain decisions, look at what you can, or at leastmake sure that your team is committed and as passionateas you are.And that was one of the key things for us.I hired, personally, some people outside the category,which was not normal for our course of business.In fact, I've had a lot of conversations with sales people
JOHN ALVARADO [continued]: and distributors saying, why didn't youhire with beer experience?I'm like, not that I didn't want them,I just found other talent and more talented people.The other part is we expanded our agency roster.So we have one of our agencies, [INAUDIBLE],who's been on this business for a long timeand actually have been the architectsof this wonderful brand and this campaign, if you will.
JOHN ALVARADO [continued]: And then we also looked at adding other resourcesto help us win based on what we felt we had to doto go out into the marketplace.And that's where some of the other agencies come on board.The other piece was fostering a deep consumer understanding.As marketers, I know we all wake up every day saying,what's going on with the consumer?For us, it was a matter of saying,
JOHN ALVARADO [continued]: we can't go just rest on our laurelsand just be happy that we have a strong foundation,we have to go out we have to talk to Hispanics,millennials, drinkers, nondrinkersto understand what's going on in their lives.How does Corona relate to them today,and how do we need to relate to them going forward?And one of the things that really Istrive to impress upon the team was meaningfulness.
JOHN ALVARADO [continued]: Because it's one thing to have high awareness,it's other than to have a high trial, but are we meaningful?In the category and the landscape that I justdescribed to you, the way to really break through and reallymake an effective communication or conversation happenwith consumers is you have to be meaningful.You have to provide some value at every touch pointso that the consumer they walked away
JOHN ALVARADO [continued]: with a really key element of your brand or somethingthat they can tangibly say I walked away feelingreally good about this brand.So that was one of the things that we went out and did.We also pressure tested the legacy, if you will.So we took our equities, kind of laid them all out.We did a lot of work to understandwhat are our strengths and what's not?And those were some really tough conversations.
JOHN ALVARADO [continued]: Our President and CEO was literally the numbertwo employee in the company.So he started with this brand 31 years ago.So literally built this brand.So to go to him and say, hey, this is what's workingand not so much here was a fun conversation, because he was--that the type of guy he is, but it wasan interesting conversation.
JOHN ALVARADO [continued]: So with that deep consumer understanding, understandinghow Hispanics, millennials, drinkers,nondrinkers all come to bear on the marketplace,understanding our strengths, we then also internalized it.And as Sean spoke to, one of the key things we didwas really sharpen our brand essence and move from[SHARPEN OUR BRAND ESSENCE]basically a Hispanic brand architectureand a general market architecture into one
JOHN ALVARADO [continued]: total market architecture.So several things went into that.One is, as you guys well know, Hispanics are no longer livingin the silos, so to speak.They're not just in that neighborhood anymore.Their influence now stretches and, frankly,has greater value than even their numbers would speak to.So it was important for us to make surethat we understood that, and how does that influence our brand
JOHN ALVARADO [continued]: architecture?The other piece was understandinghow multicultural consumers are transacting this new world,because one of the things that we understandis, when you talk to consumers, even the multicultural aspects,are not just in terms of ethnicity.Actually there's a social circle that'snow-- their new social circle, excuseme-- is very multicultural.
JOHN ALVARADO [continued]: So their mindsets are broader, global in some sense,but how do we make sure that our brand is living upto that challenge, so to speak?And so really taking a deep dive in termsof brand understanding, how does our positioning kind of work?And I'll be honest with you, our positioning was still strong.And still we had a lot to offer.We had to start bringing that forwardthough more through different ways.
JOHN ALVARADO [continued]: And I'll share with you some of that.But the first thing I would tell you--I skipped over this piece-- was, the first couple meetingsI had with people-- again, I told youI did interviews with stakeholders and so forth.I'd say what does Corona stand for?And the answer I would get, and you could all probablysay this to yourselves as well, isit's the beach state of mind.[Find your beach]
JOHN ALVARADO [continued]: The beach was playing such a strong rolein defining this brand, that that was the first word outof people's mouths.So the beach state of mind.All right.That seemed simple.And I kind of ran with it for a while.And I'd been meetings, and I'd be like, but wait a minute.How do we know it delivers on the beach state of mind?Like the beach state of mind for meis different than what it is for Chris,
JOHN ALVARADO [continued]: and it's probably different for you, right?We could all articulate it so many ways.So I said, we've got to land that.We've got to be clear and concise and reallytight on what we are standing for.So the re-articulation that we didwas really internal debates, interviews with stakeholdersand so forth.And we landed on the passport to carefree enjoyment.
JOHN ALVARADO [continued]: So if you go back to Guy's session this morning,that's our mantra.That's what we stand for.We make sure every word added value.The passport piece is key, because weare this import brand.We do move people.The whole idea of when you walk into a conversationwith Corona, you walk out a little bit different, or youspend a little time feeling differently.And we knew that actually was a truth of the brand.
JOHN ALVARADO [continued]: And the carefree enjoyment part is whatmanifests itself on the beach.But as you guys have-- you've seen our campaignthe last couple years-- also can manifest itselfoutside of the beach.And that was important, because the beach was--we had a lot of credit from consumers in terms of the beachand it being Corona, an equity, frankly, of ours.But the fact of the matter was, millennials and those 21 to 30
JOHN ALVARADO [continued]: have a different perspective on it.They're like, look.I'm not trying to get away to Mexico, if you will.So the beach is this aspirational place, but notrelatable on an everyday basis.And I can't just sell beer when they want to go on vacation.That just would not drive the numbers.So the key thing was, how do we make that more relatable,and how do we bring it home to bear every day in terms
JOHN ALVARADO [continued]: of our consumers' lives?So one of the things is advertising, right?We talk a lot about that.But, more importantly, we shifted in two ways.So to be more relevant, we not only moved away from the beach,but the beach plays a role in that spot.If you think about the classic Corona advertising,which was 30 seconds grounded on the beach,
JOHN ALVARADO [continued]: and that was not in-- trust me, that'sa conversation we still have to this day.What's the role of the beach?How much does it play?That was key in terms of we said, look.If we're going to be relatable on an everyday basisand relatable to today's consumer,we need to really kind of hone in on those momentsthroughout their days when they wantto set aside their responsibilities for justa minute and really just enjoy the moment with friends
JOHN ALVARADO [continued]: usually, and that's what that's meant to capture.The other shift was we moved away from just telling peopleabout, you can find your beach here,you can find your beach there, which was great,because we needed to do that.We introduced Find Your Beach, and thatwas a new concept in terms of consumers'understanding of the brand.So we landed that.
JOHN ALVARADO [continued]: And we talked to consumers and said, no.You have permission now to move from that, because I understandthat concept.So now though the opportunity was,how do we demonstrate that?How do we bring home that feelingthat I told you exists when you get to beautiful [INAUDIBLE],but also when you go to the bar, and you wantto just enjoy your friends.
JOHN ALVARADO [continued]: And that's the key aspect of two.One of the things that leads us tois bringing the power, the emotional benefit,of this brand to life in spades.And really making sure as, I as a consumer,walk away from this communication,I feel something for the brand, and it's gettingback to being meaningful.But we didn't just stop there.The other part was, we did an audit of our existing elements.
JOHN ALVARADO [continued]: And a couple years ago, actually up until March of this year,[CONTINUAL PUSH FOR NEW WAYS TO BE RELEVANT]The can on the right was what we hadto bring to the marketplace.In the middle, our Key Can Occasions.So, of course, we audits on occasions and so forth.And when you look at those, you'reall probably sitting in your chairssaying, yeah, those feel like Corona, right?Beach, patios, golfers, outside, sun, blue.
JOHN ALVARADO [continued]: Well, consumers kept telling us, hey, it would be greatif you had a can.But we have can.They're like, no, no, really.It would be awesome if you had a can.Our awareness of cans on Coronas was 22%.So very low in terms of, yeah, you'regreat for these occasions, but oftentimeswhen I go to store I pick up something else,because I don't want to-- either I can't take
JOHN ALVARADO [continued]: the bottle to the beach, which is funny,because obviously you've been doing itfor 30 years-- as consumers, not as a marketers.But the other part was, OK, so what's missing?And what you can see there, or at least from our standpoint,the can, the previous can, reallydid not encapsulate the iconic nature of this brand.It didn't live up to our standards
JOHN ALVARADO [continued]: and, frankly-- I don't have a picture up there,but if you remember our bottle, or I'llbuy you one later if you want.[INAUDIBLE]Our bottle is very iconic, and consumers give usa lot of credit for it, and they love it.It really strikes emotions.The existing can did not-- the one on the right.The one on the left though, I'm happy to tell you,it's actually moving things in a far different manner.And now awareness is up.
JOHN ALVARADO [continued]: Trial for our can business is up.So we're having really great progress and, in fact,right now sales are about 97% above last year, whichmy president likes to remind me.Well, last year was low.Of course, you're going to be up.But the fact of the matter is, more importantly,when we talk to consumers, and nowwhat we're seeing in social media is
JOHN ALVARADO [continued]: consumers are adopting the can.It's now playing a role.It's living on the same playing field, so to speak,as our bottle.So that's good news.So a change there.Another change was really thinking about, OK, Ihave 365 days of the year.If I had to make a bet, what's our rightful timeto win, so to speak?[CLAIM RIGHTFUL TIME TO WIN]
JOHN ALVARADO [continued]: And so, naturally, it's summer.But, more importantly, when we talkedto consumers, both drinkers, nondrinkers,what they've told us, and they all agreed,is actually Corona is the perfect beer for summer.So I went, all right, now I can go.That gives me more confidence to go out and really plantthe flag and make sure when we're in summer,
JOHN ALVARADO [continued]: it's going to be for all the right reasons.The other thing that we've seen, actually,and I showed you the acceleration momentum,we adopted this strategy actually a couple years ago.But we know, and now we believe wholeheartedly internallyis, when we win the summer, we'll win the whole year.Because it really is a springboardto really get consumers to think of Coronaeven outside of summer.
JOHN ALVARADO [continued]: So how do we present our best self in the summerso that when consumers walk away, and for those of usin the north or Chicago, so to speak-- it'snow turning into fall-- yeah, well,it's good that they mentally think of Corona.So that was a key change.The other key change in the menu was, as you noticed there,it's actually bilingual.We actually moved to having 360 integrated-- whatever word you
JOHN ALVARADO [continued]: want to use-- a basically holistic idea that resonatedwith all our consumer base.So it wasn't about, hey well, here, I'lltalk to you differently here.And I'll talk to you differently over there.It was, how do we leverage the power of this brand and the onearchitecture in a manner that is goingto resonate with our consumers, both Hispanic and non-Hispanic?And so we had this idea of Always Summer.
JOHN ALVARADO [continued]: And then we didn't just stop at communication.We looked at every element to makesure it lived up and basically delivered on that idea.And one key thing for us was changing our packagingfor the summer.So, yes, if you've been following closely,a couple years ago we started adding promotional snipeson our packages during the summer.
JOHN ALVARADO [continued]: Last year, 2014 and now 2015, we said, why stop there?If we really believe this is our time to win,and this is really the time that consumers most associatewith our-- meaning time of the year,excuse me-- that consumers most associate with our brand,then let's lean in.And so we did.We took advantage of the canvas, if you will,of our secondary packaging.
JOHN ALVARADO [continued]: And, as you can see, that really hasthe look and the feel of summer and bringingthat home to make sure that when consumers pick that up,they were taking a little bit of summer, so to speak, with them.The good news is, it really was impactful.The challenge is, now people want to adopt this year around.And I'm like, nope.Not going happen.So that's the sword that we also play on
JOHN ALVARADO [continued]: in terms of being marketers.So that was one key thing, claiming our rightful timeto win.Another key thing was, how do you connect with themin relevant ways?So it's great, felt really good about our communication.We made some strides there in the right direction.But then you can't just talk to consumers at that level.As you guys well know as marketers,the consumption of TV has declined slightly.
JOHN ALVARADO [continued]: Digital is really fast and growing.Social.But also, in our world, what we can dois we can make experiences happen locally.So in bars, in venues.How do you just, rather than just saying, oh,here's a Corona and a keychain, how do youchange that conversation?How do you make it into a meaningful conversation?Going back to try to deliver meaningfulness
JOHN ALVARADO [continued]: across every touchpoint.And so one of things you have in front of you,or the platform you have in front of you,is called Corona Electric Beach.The fact of the matter is, millennials,whether you like this music or not, EDM is their music.There's a lot of articles written about it.But some of them are negative, but there's a lot of positive.And this generation, that's there.They feel like that is really representative of who they are.
JOHN ALVARADO [continued]: Yet the beauty is, it's very multicultural.It has an appreciation across Hispanics and African-Americansas well as non.And so as you can see there from the shot, a lot of consumersare interested.But how do I bring Corona into that conversationin a meaningful way?That was our challenge.How do we make sure we don't just bastardize our brandand say, hey, here's a logo, great.
JOHN ALVARADO [continued]: We're happy to be a sponsor.We can't.We've got to push it further.We've got to have that conversation, thatinteraction so they walk away in a meaningful way about Corona.So the Corona Electric Beach allows us to own it.Actually if you go to one of these events,and I recommend you do, because they are a lot of fun,the logos is not plastered everywhere.Actually it's very subtle.
JOHN ALVARADO [continued]: The most you'll see is that sign up there on the top.And that will fade out.It's not up there all the time.But there's really subtle cues throughout.More importantly, what I'm excited aboutis when I go to these events, the waywe engage with consumers is different than any other wayin terms of bar promotions and so forth.The premiums that we give them to the swag, if you will,is very unique to this platform that we don't
JOHN ALVARADO [continued]: use outside of this platform.So we stay true to it, and we do itin a cadence that allows it to remain specialand allows it to remain very Corona-esque, if you will.So one of the other things you might be asking yourselfis, but wait a minute.That's pretty high energy.That's not the low energy of Coronaon that beach just chilling.You're right.
JOHN ALVARADO [continued]: The fact of the matter is, one of the other things we'vegotten from consumers, particularly millennials,is they're OK.We have permission actually to have more energy.They're like, no.I drink Corona.Like I drink Corona in up situations, so to speak,more energetic situations.But the one thing they will tell us is when we go too far,they're the first to tell us like, whoa.
JOHN ALVARADO [continued]: That's not Corona.So we have to balance it.We have to do in the right way.And this has allowed us to do it and connect in a relevant waywith consumers.The other part is, four our Hispanic consumer,I talked to you about the core-- our core Hispanic consumer--and how important they are to our businessand kind of their wandering, if you will,and checking out other products, so to speak.
JOHN ALVARADO [continued]: We have to remain in tune to them,so we do partner with A-level Talent.For this example, is Juanes.He's the top selling or most awardedLatin Grammy winner, if you will,among male Latino artists.And not only that, the other part that we push or make sureis that they're a good fit with the brand.
JOHN ALVARADO [continued]: He actually was recognized by Time magazineas the top 100 most influential people in the world.He does a lot of humanitarian efforts.If you perhaps watched the Pope in Philadelphia,he actually was invited to sing there by the Pope.So good in terms of album sales but,more importantly, a good fit with the brand
JOHN ALVARADO [continued]: in terms of his values are similar to ours.What is does is allows us to create really good synergiesand partnerships.So, again, tapping into his passion pointfor our Hispanic consumer to remainreally relevant and authentic and true to who they areand how we can interact with them.This was always a fun conversation,because people say, boxing?Really?
JOHN ALVARADO [continued]: The fact of the matter is, boxing is a key passionpoint for our consumers.And Corona has actually been in boxing for over 20 years,just not on the scale that we are today.62% of Hispanics and African-Americansare boxing fans.So 6 out of 10 of a key demographic for us to winare boxing fans.So that's one of the reasons we do it.
JOHN ALVARADO [continued]: The other part, similar to what I told youabout Electric Beach, is we also are doing in it Corona Light.So how do we make it so it fits with our brand?So yes, we have the standard sponsorshipelements of being on the mat and so forth.But what's behind the scenes that's happening is two things.One is we create experiences for consumers
JOHN ALVARADO [continued]: that we engage through two different ways,that when they're at these eventsor even when they're in a local market,we do bar promotions that are special and meaningful.So here's one example.In a market in the Northeast, at this bar thatis a big boxing, so to speak, that weknow our Hispanic and African-American consumers goto watch, we actually about two weeks before the fight,
JOHN ALVARADO [continued]: we raffle off the area that's essentiallythe prime seat in the house to watch the event.And so through that, they get a bucket of Coronas,they get all this special treatment.And, again, it's a meaningful way for themto not only watch the fight but walk awayhaving their carefree enjoyment moment, of course,provided by Corona.So just as a little example of little things
JOHN ALVARADO [continued]: that can go a long way.Another piece is football.So for years, frankly, our network, our partners,have said we need you to get involved in football.And I understand, from a consumer perspective,I tell them, I know.It's the number one sport of millennials and growing.It's got all the recognition that itneeds in terms of one of the biggest properties out there.
JOHN ALVARADO [continued]: But my concern was, it can lead us astrayin terms of not feeling or being like our brand or,more importantly, being generic-- just another brandtying with a popular sport.And so it took us a couple of yearsto really figure this out.And so what we did is we said, OK.We're going to do this.Let's bring it back, bring our equities to bear, so to speak.
JOHN ALVARADO [continued]: So the way we did it is, we called Game Day Beach.So what we know is that consumers-- football isfor them their Find Your Beach moment.For those three hours, if they'rewatching their favorite team, it is their momentof kind of putting their responsibilities asideand kind of having that moment with friends.So we find ways, and there's elements behind thisthat I'm not showing you today that helped facilitate that.
JOHN ALVARADO [continued]: The other part was presenting the brand in this space.We partnered with John Gruden,[Corona GAMEDAY with COACH JON GRUDEN]retired coach, one Superbowl but, more importantly,has got a cleverness to him.He's very witty.I don't know if you ever watch him on Monday Night Football,but he's not just a commentator.He actually has fun along with it.He's very passionate about what he does.So those are the values that are basically
JOHN ALVARADO [continued]: shared values with us.The other part is that he's got a very positive outlook,and our brand is very positive and very optimistic.So it was another key element to make surethat what we do in terms of partnering with him,also measures up to that.So when that happens, what we have found is the magic--and I told you about how we go to marketin terms of distributors-- they execute because they believe.
JOHN ALVARADO [continued]: They're like, OK, you've explained to mewhy this is going to get millennialsand, frankly, Hispanic consumers to pick up more Corona.So when I put my resources, when I put my equity behind it,it's going to pay off.I showed you football, but it's happeningacross the other passion points as well.So finding a way that they can bring it to bear and make
JOHN ALVARADO [continued]: the retailer successful as well as make them successful.The other part is finding ways to communicate with consumers.As you well know, social is very popular with all of us,frankly, but in particular with millennials.They transact-- those phones are devices that are not about justcommunication.They're very personal.
JOHN ALVARADO [continued]: And so how do we communicate with themin ways that feels very much on brandwhile not selling to them?That's providing little meaningful conversation,whether it be through our wit or through our content.And we're having success there.So not only just above the line communication,so to speak, from a TV out of home perspective,but from a digital and social perspective,
JOHN ALVARADO [continued]: we're being very thoughtful in termsof the content that we bring and how we bring it to consumers.Frankly, the results are really strong.Right now, we're seeing engagement ratesthat are 5 to literally 15 times higher than the industryaverage.So really impactful but, again, one of those thingswe've got to be balancing because weknow those devices are very personal.
JOHN ALVARADO [continued]: So how do we add value to that conversation,not just disrupt their conversation?So a lot of things in terms of how we go.This is just trade press to kind of encapsulate,you know, there's a lot of people asking,what the hell is going on with Corona?It's like, you've got people asking areyou going to have enough beer, based on the momentumthat we just shared with you.But, more importantly, I spoke to you
JOHN ALVARADO [continued]: a few slides ago about sales-wisewe have great momentum.But I told you the challenge in how we're winning[THE WALL STREET JOURNAL Will the Corona Flow Fast Enoughto Meet U.S. Demand?]is out how to be more relevant.And we've evolved to be more relevant and meaningfulto consumers.And I'm happy to tell you that all are-- not all.That would be a really bad statement.Incorrect.But most of the key attributes that we're driving against,our key KPIs I can tell you for sure,
JOHN ALVARADO [continued]: are moving in the right direction.We're up significantly.The [INAUDIBLE], [INAUDIBLE] media trackers significantly isreally how we've impacted those metrics.So that's really good.And we're talking to consumers through different sourcesand seeing a lot of good things in terms of we'rebeing meaningful.And that's key.Because in that landscape that I've
JOHN ALVARADO [continued]: described of all these new products, all this noise,that's the way to stand out.It would be easy to get pushed to the middle,so to speak, and be mainstream and losethe specialness of our brand.And we cannot let that happen, and we won't frankly.So I feel really good about the changes we've madeand I shared with you today.As far as key takeaways, the first one is really, for me,
JOHN ALVARADO [continued]: a big key which is[KEY TAKEAWAYS]evolve to stay relevant.And evolving can be, like I just showed you,through different ways.There's not just you've got to look internallyat yourself, your brand, and really identifywhat is it that is working and what's not working.And what is you can make evolve, so to speak, to be relevant?
JOHN ALVARADO [continued]: The other part or underneath that is look at your team.Hire the right talent.And if you have the right talent, thenmaybe it's just shifting their mindset.Or if you've got that, then you'rein a really good position.But making sure they're all in and committed to the cause,so to speak, and bringing home everything that you want.And in our case it was making sure the meaningfulness washappening across every touchpoint.
JOHN ALVARADO [continued]: The next thing was having a deep consumer understanding.I don't need to preach that one to you guys.As marketers you well know that's probablywhat gets us excited every day about what we do.The other part is being disciplined and havinga consistent approach.Don't just look at something in the short term.Because it's one thing to get that sale on Saturday,
JOHN ALVARADO [continued]: but how are you going to get that sale next year?How are you going to get that sale two years from now?And yes, you can argue or you can say, well, Corona,it's been easy.Well, no it's not.Our conversations are real every dayin terms of, we know we've got to achieve our plan,our business plan, but we're not going to do itat the expense of the brand.And we've been able to literally get our partners all
JOHN ALVARADO [continued]: to agree to that which is, as you guys go to the beer aisle,go in and you'll see coupons, you'll see things,we don't do that.Yes, we'll get a feature, but the key is making surethe equity that we built into this brand,we've got to continue to build it, first and foremost,but be we cannot bastardize it just to get the sale today.And that's tough, but as stewards of the brand,
JOHN ALVARADO [continued]: try to make that happen.And then the last one is engage in a relevant way.So I walked you through several examplesfrom boxing to football, media, music,things that, yes, are relevant to the consumerbut that also are relevant to your brand.Remember, you want to bring your brandto bear on those relevant touchpoints or passionpoints in a meaningful way but that is also
JOHN ALVARADO [continued]: representative of who you are.Again, trying to leverage it in a way that makessense for you long term, not just short term.