Corona parallel imports confront Lion

By James Atkinson

Tackling parallel imports of Corona will be a key concern for the beer brand's new distributor, Lion, according to Australian Liquor Stores Association (ALSA) president Mal Higgs.

As Mexican brewer Grupo Modelo revealed the logistics of the switch, ALSA's Higgs told TheShout that parallel importers, along with Foster's, had clearly benefited from the Corona brand's huge growth in Australia, and this would have to be a concern for Lion.

"I would've assumed that Grupo Modelo could have done more to stem the flow of parallel imported product if they wanted to, because they've got ways of tracking where it comes from," he said.

"[Lion] presumably would want to have some undertaking from them that they were going to be able to place some sort of controls over how easy it is to move the product around the world," he said.

Higgs said ALSA always starts with the viewpoint that its members "really should be supporting the people who are putting the energy and money into investing in the brand".

"[But] I don't know how far you can expect a retailer to take that if there's several dollars a case difference between the parallel price and the agent's price."

Garry Hastings, general manager of Grupo Modelo Oceania Region, told TheShout parallel imports "are a concern for every brand owner and distributor in the marketplace".

"It exists and has done for awhile," he said.

ALSA's Higgs added that retailers would like to see the new distribution arrangement with Lion bedded down as soon as possible.

"Obviously we would like to see stability in the marketplace so we can get on and make our plans from a promotional perspective," he said.