Spikes Asia

EXTRA LIME COMPANY

AB INBEV, Shanghai / CORONA / 2024

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Case Film
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Overview

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Overview

Background

Most likely advertising ideas are “one hit wonders”. But with Corona Extra limes, we aimed for lasting impact. We were committed to going beyond an ephemeral idea, focusing on scaling up the project. Recognizing the potential to positively impact communities, consumers, and businesses, we understood that exporting our working methodology was more valuable than just exporting limes. This strategic shift led us to create a Lime Company, an important decision that allow us to expand into three new Chinese provinces and extend our reach beyond China to another significant market: South Africa.

Idea

We launched the Extra Lime Company, in collaboration with the government and local farmers: as a beer brand we registered China's first-ever lime company, setting the first ever lime quality standard with a sustainable production process and giving farmers a better life quality. So, we have three strategic pillars to base out company on:

1. Producing high-quality limes for the Lime Ritual.

2. Farmers’ stable income since are profits are directed to them.

3. Use the Lime Ritual to expand Corona’s consumption in China.

Strategy

Corona has been working hard to popularize its lime ritual among Chinese consumers. Despite 42% of them showing interest in more premium experiences and products, a 20% increase compared to the global average as of 2022, only 30% perform the lime ritual when drinking Corona.

The main challenges faced were the difficulties in finding, cutting, and serving high-quality limes. Additionally, the lime-beer combination was not common among Chinese consumers.

To ensure a positive experience and create a lime ritual habit, obtaining high-quality limes was crucial. In response, Corona partnered with farmers, 20% of whom were living in poverty. Corona collaborated with governmental authorities and farming communities to harvest the needed limes. This collaboration led to the development of a work methodology, which subsequently became the foundation of the Extra Lime Company. This model transformed farmers into stakeholders, ensured high-standard lime production, and simultaneously provided consumers with a satisfying lime ritual.

Execution

Following the Corona Extra Lime project working model, where partnering with authorities and farmers to produce high-quality limes gave excellent results, we created a new entity with a new lime brand by doing the following actions:

1. Expand our yields.

2. Establish a strict lime standard.

3. Leverage local lime company for automated selection, labelling and packing.

4. Partner with local transportation supply chain.

5. Cover our POCs with the best limes to bring the best lime experience to consumers.

6. Donate income to farmers.

Outcome

The latter was a consequence that reflected in expanding our lime business into three more provinces in China. It also played a vital role in developing the lime industry in South Africa's Moletele region.

Results:

81% increase in income per capita.

The Extra Lime Company boosted global sales by 30%, enhanced brand love, and attracted ten times more farmers.

The Company will re-invest 20% of our net profits each year into the lime farming community.

Lime Ritual Doing rate: +5.5% (National Hight Income) Dec. 2023 Vs. Dec. 2022.

Ecommerce in JD GMV: +17.2% Vs. LY

Lime order in DUOLI: +28% Vs. LY

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