• Ad Age, Thursday, March 20, 2008 11:46 AM

Analysts and rivals say that a frothing head of new or reinvigorated brands are responsible for the first decline in Corona Extra sales after 16 years of growth, but the brand's executives blame the erosion on a price increase. According to Beer Marketers Insights, Corona shipments declined 1.7% to 8.3 million barrels.

Beers that appeal to traditional Mexican import drinkers--including Dos Equis, Miller Chill, the forthcoming Bud Light Lime and even Corona's resurgent sibling Modelo Especial--are creating a more difficult competitive environment than the No. 1 import has previously faced. Modelo Especial was up 10.5%, to 1.6 million barrels; Tecate rose 8% to 1.4 million barrels and Dos Equis jumped 17% to 655,000 barrels.

But executives at Crown Imports, which markets the laid-back brand in the U.S., seem remarkably unperturbed by the situation. A spokesman says there have been many unsuccessful attempts to compete with the brand in the past and it doesn't believe the results will be any different this time.

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