Essay Example on Corona Beer: A Global Phenomenon in 207ml-940ml Bottles

Introduction

Corona beer is one of the largest top-selling brands of beer globally, and it is manufactured in Mexico by a company known as Cerveceria Modello. In other countries, the beer is served using a wedge of lemon or wine within the neck of the bottle with an intention to add flavor and bitterness. The beer is highly imported by most countries, including the United States Of America (USA). The drink is available in a variety of bottles between 207ml and 940 ml. The beer is termed as Coronitta in the country of Spain; however, the names do not change in other countries. The beer seems to be mainly brewed for the USA market since it is mostly imported by the country (Wolinski, 2018, p. 2).

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The main issue that the business is currently facing is the coronavirus. Coronavirus popularly known as COVID-19, is a disease that was initially discovered in China and mainly affects the respiratory organs. The disease first outbreak was in the city of Wuhan and then spread to other cities and countries. It is spread from person to person, and the people who are at higher risks of contracting the disease are close contact individuals. For instance, individuals who reside in an area that experience the disease have a higher prevalence of contracting the virus (WHO, 2020, p. 1).

Discussion

The virus is affecting business worldwide. For instance, the corona beer beverage has been affected negatively by the virus. The disease is a headache to the internal management team of the company since it has unfavorably affected the sales leading to a decline in revenue and the profit margin. The beer has become the subject of videos and memes shared in various social media online. People in the world have been researching the close link between the beer coronavirus and corona beer virus. The close association between the virus and the beer has affected the sale of alcohol worldwide. It is reported that there has been drastically decreased in the number of purchases in the USA despite being the largest importer of the beer from Mexico (Kotoky , 2020, p. 2).

Currently, the reputation on the brand of beer has drastically decreased since the virus has spread extensively globally. The shares on the popular alcoholic drink decline to 8 per cent this week in the USA. The survey conducted to determine the popularity of the drink and to ascertain whether the public has heard anything positive or negative about the brand reduces from 75 per cent to 51 per cent. Corona which originates from the name sun corona has nothing related to the virus. It is ranked the third popular drink in the USA after Guinness and Heineken (Kotoky, 2020, p. 2). The survey done, which involves 737 American citizens were quick to point out that they would not purchase any corona beer currently. The 4 per cent of the corona beer fans agreed that they would stop drinking the brand. 14 per cent agreed not to buy corona peer in a public place (Root, 2020, p.1).

The coronavirus has made the corona beer production company lose a total of PS132 million. The demand for beer has drastically dropped. Therefore the sales have decreased, especially in China. The company had projected an upsurge in sales because the country was approaching lunar New Year celebrations. Most people in China are indoors. There is a minimal number of people who are out there to socialize. Most businesses, especially night clubs and bars, have been directed to close to minimize the spread of the deadly disease. Social joints are the largest buyers of corona beer, but, with the closure of the businesses and lack of customers, they have halted their purchases.

The decline in sales has also lead to a reduction in the chief executive's bonus pay. The economy is on the verge of collapsing because other businesses are also affected. For instance, the global manufacturer of the spirit, Diageo, intimated to their shareholders that the spread of the virus would lead to a decline in profit to PS200 million this year. Moreover, airline industries have suffered significant losses due to travel bans to and from specific countries affected by the virus (Marlborough, 2020, p. 2).

The united nation conference on trade and development (UNCTAD) has predicted a slow global economic growth below 2 per cent due to coronavirus. The slow growth will drain $1 trillion off the value of the world economy. Even if COVID-19 will not kill more humans, the world will face a major economic recession. Most industries and factories in China have been closed down; hence, disrupted supply chains leading to loss of extra revenue. Restriction of travels of millions of China, France, Spain, and quarantine of all Italian citizens means a halt on business activity. Since China is the world's largest importer of oil, the oil prices will be affected due to a drop in global demand perpetuated by coronavirus (Hutt, 2020, p. 4).

Strategies to Prevent the Spread of Corona Virus

The virus can contain from spreading extensively by wearing a face mask if an individual is sick, staying at home, and covering coughs and sneeze.

Wearing Face Mask

People should wear a face mask, whether they are sick or not. An infected person should wear a face mask when they are in contact with a lot of people in a crowd, sharing a room or in a vehicle to prevent others from contracting the disease. The disadvantages of face mask are: uncomfortable to wear, well-fitting are difficult to find, and facial hair and beards may disrupt fitting. The advantage is it prevents fluids arising from coughs from reaching the mouth.

Staying At Home

Staying at home is advantageous since a person will not be in contact with people suffering from the disease. However, the disadvantages are it hinders one from engaging in income-generating activity, lead to global recession due to a decline in economic activities, and loss of profit margin among many businesses.

Conclusion and Overview of Recommended Strategy

The political strategy serves as the best approach to contain devastating economic impacts of coronavirus. Governments should impose tax cuts, offer paid sick leave for all workers, and even overall elimination of taxes. Additionally, the government should provide loan support to the entire businesses short of money due to extreme hit by coronavirus. The industries that manufacture oil should be bailed out by the government due to their struggle of oil-price war contributed by the virus. Hospitality industries such as travels and hotel, which have suffered massively due to lose of clients should be given financial support from the government. Moreover, the interest rates should be reduced, and the lending rate ought to be lowered by half to restart the economy reduced by the effects of COVID-19 outbreak. Lastly, mortgages and business loans should be made less expensive by lowering rates to enhance more investment and improving housing market, boosting broader economic growth (Johnson, 2020, p. 3).

Works Cited

Hutt, R. (2020) The economic effects of the coronavirus around the world, World Economic Forum. Available at: https://www.weforum.org/agenda/2020/02/coronavirus-economic-effects-global-economy-trade-travel/.

Johnson, K. (2020) 'Trump and Other Leaders Grapple With Limited Economic Remedies for the Virus', Foreign Policy. Available at: https://foreignpolicy.com/2020/03/10/trump-economy-coronavirus-stcok-market-limited/.

Kotoky , A. (2020) 'Corona Beer Virus?' The Global Epidemic Is Taking a Real-Life Toll on the Beverage, Time. Available at: https://time.com/5792470/corona-beer-virus/.

Root, A. (2020) Americans Say They Won't Drink Corona Beer Because of Coronavirus. Sales Are Up 5% Anyway. [WWW Document]. URL https://www.barrons.com/articles/americans-say-they-wont-drink-corona-because-of-coronavirus-but-sales-are-up-5-51583610529 (accessed 3.16.20).

WHO (2020) Coronavirus disease 2019 (COVID-19) and you. Available at: https://www.cdc.gov/coronavirus/2019-ncov/downloads/2019-ncov-factsheet.pdf.

Wolinski, C. (2018) 12 Things You Should Know About Corona, VinePair. Available at: https://vinepair.com/articles/corona-lager/.