• Chicago Tribune, Friday, April 10, 2009 11:15 AM

The recession and intense competition are hitting higher-priced imported beers, particularly the once high-flying Corona, which faces more challenges than just the economy, Mike Hughlett reports. Carlos Laboy, an analyst at Credit Suisse, opines in a recent report that Corona "really has life cycle issues."

Not only are craft beers stealing business from major imports, Corona also is under pressure from Anheuser-Busch's new Bud Light Lime. Industry analysts say that part of the problem for Corona Extra was a price increase in 2007. Domestic brewers didn't raise prices until months later, leaving a larger-than-usual price gap just as the economy soured.

Shipments of Corona Extra dropped 4.6% last year, the second consecutive annual decline, according to Beer Marketer's Insights. And its overall market share has slipped to 3.6% from 3.9% in 2006. Bill Hackett, president of Crown Imports, which imports and markets Corona, says, "Our view is that [the brand] is as current as it's always been."

Read the whole story at Chicago Tribune »