The Truth About Corona Beer Sales
Pubs and break rooms are alive with hot takes on the coronavirus, not to mention jokes about a particular brand of beer.
5W Public Relations claims that following the recent virus outbreak and according to 737 polled beer drinkers, 38% of Americans wouldn’t buy a Corona under “any set of circumstances.” To put it another way, 5W Public Relations claims that 38% of Americans are complete idiots. As some Invstr’s have pointed out, that’s like not buying hearing aids during the AIDs epidemic (something 38% may not have done)!
Corona is owned by Constellation Brands, publically traded on the New York Stock Exchange (NYSE) and followed by 756 Invstrs who profit from 62% of its price movements. The stock’s a livewire, very popular, and very prone to shifts in consumer sentiment. That’s why with 38% of statistics made up on the spot, it’ll pay dividends for investors to separate fact from fiction.
What’s undeniable is that shares have fallen 15% in five days, far underperforming the overall market which declined around 9%.
This is most likely due to a supply shock. Ports are closed and trade is moving at a snail’s pace, so crate shipments full of Corona may take longer to reach their intended store shelves. That inefficiency creates costs, and those costs force down profit forecasts. In markets, it’s all about the money.
To be sure, Constellation says it’s seen “no impact to people, facilities, or operations and the business continues to perform well.” The company is not afraid to shoot for the same earnings estimates as two months ago, so quite possibly, a second negative driver for the stock could be false investor perception!
After all, the media’s gone wild with this story. Break rooms are bustling and irrational panic is everywhere. The Corona beer brand is right in the line of fire for dumb trades!
From here on in, sensationalist, headline-grabbing virality could see negative sentiment swell even more. Some early buyers could get their fingers burnt. However, it’s only a matter of time before common sense prevails. Constellation Brands doesn’t even have exposure to China. A beer and lime may even be the cure? Bottoms up!
