Brewer skirts pandemic ban with low-alcohol beer 

Cerveza Victoria circumvented Mexico's pandemic ban on brewing beer by releasing a low-alcohol alternative

Challenge / In April 2020, the Mexican government responded to the Covid-19 pandemic by deeming beer a non-essential product and forcing beer factories to shut down. This meant local brewer Cerveza Victoria was no longer able to produce or distribute its products.

The Mexican beer industry, which is dominated by Heineken and Cerveza Victoria’s parent brewing company Grupo Modelo (part of AB In Bev), is directly responsible for 55,000 jobs. But according to the Mexican beermakers’ chamber – if you factor in restaurants, stores, etc the industry is indirectly responsible for 650,000 jobs. These workers’ livelihoods were now in jeopardy following the government’s mandate against beer production.

Solution / To keep its factories running, Cerveza Victoria and agency Ogilvy Mexico took advantage of a loophole in the Mexican legal system whereby drinks with less than 2% alcohol content are not considered alcoholic. Cerveza Victoria was therefore able to replace its ordinary brew with Victoria 1,8, a new low alcohol beverage that was not legally considered beer.

The product was sold in black cans emblazoned with the message ‘Unidos por Mexico’ (‘united for Mexico’). The packaging also featured a message encouraging Mexicans to never give up, explaining that the product was conceived to help Mexicans and was in homage to them. As part of its 1,8 launch campaign, Victoria promised to donate proceeds from sales of the beer to Mexicans impacted by the Covid-19 pandemic.

Results / According to the agency, Victoria 1,8 was the first low alcohol beer in the market and as such was the only beer on shelves for two months. Last year, Victoria 1,8 reported 116% more sales than fellow AB InBev brand Stella Artois achieved in Mexico in an entire year. The campaign resulted in 564.3 million impressions.

Contagious Insight 

Besting the competition / While in many countries around the world, the early days of the pandemic saw a run on toilet paper, in Mexico the declaration of beer brewing as a non-essential activity led to a nationwide beer drought. The ban on brewing created a thriving black market for beer and sent prices skyrocketing. By responding in lightning speed to the Mexican government’s Covid-19 rules, not with a campaign but a new product, Cerveza Victoria was able to outmanoeuvre its competition and end up as the only beer brand in the country with cans on supermarket shelves.

Uniting Mexicans / Mexicans are heavy beer drinkers, drinking on average 1.3 litres a week, which makes the country 30th in the world for beer consumption, according to Mexico’s National Institute of Statistics and Geography. It’s no big surprise then that the government’s ban against beer brewing caused huge uproar in the country, especially as other sectors such as spirits or wines were not impacted. Memes with the hashtag ‘#ConLasChelasNo’ (ie, #Don'tMessWithMyBeer) sprung up in protest at the government’s actions.

Victoria Cerveza’s 1,8 didn’t just create a beverage for Mexicans to consume during the beer drought, it tapped into their anger and showed the brand’s solidarity with the Mexican people. In finding a clever legal loophole, the beer brand managed to obey the government’s rule but the messaging behind the campaign for its 1,8 brew showed that its allegiances lay firmly with ordinary Mexicans. The combination of the closed fist on the packaging and images of protesting Mexicans in the campaign video reinforce this defiant spirit. Moreover, the promise to donate proceeds from the low alcohol beer meant that the campaign was perceived as lending a helping hand for the Mexican people and economy, rather than being a more self-serving effort from a brand. Also, dating back to 1865, the Mexican brand has celebrated its heritage with various campaigns that honour local customs, such as the Day of the Dead, and Cerveza Victoria builds on its existing brand identity.  

Pandemic problems / At Contagious, we’ve covered smart ways that brands have circumvented government rules. For example, when Netflix in Thailand cut offensive images from its outdoor ads because of censorship laws or Poker beer in Colombia duplicating a street corner to allow people to legally drink outside. But Cerveza Victoria was in a tricky position here because it had to sidestep the government’s ban on beer production without diminishing efforts to protect the health of the Mexican people. The brand managed to balance these two things with the communications for Victoria 1,8 including an online video encouraging Mexicans to mask up ‘for our Mexico’. The importance of public health was further cemented by an early press statement from the brewing company Modelo, which proposed keeping 75% of its staff working from home as a way to keep safe while still guaranteeing its beer supply.



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