Strategy and Effectiveness > Challenges & Breakthroughs

EXTRA LIME COMPANY

AB INBEV, Shanghai / CORONA / 2024

Awards:

Bronze Spikes Asia
CampaignCampaign(opens in a new tab)
Case Film

Overview

Credits

Overview

Why is this work relevant for Creative Strategy?

This idea demonstrates the transformative and creative power of strategic planning on branding, business, and societal impact. Corona strategically prioritized lime harvest, addressing business challenges and creating a working methodology. This showcased adaptability and consumer commitment.

Establishing a lime company highlighted Corona's dedication to quality and sustainability, enhancing consumer experiences. Integrating lime harvesting was a game changer in industry standards, positioning Corona as a leader in responsible practices. Lastly, this strategy not only brought innovation and improved business but also positively impacted farming communities. It highlights the significant role strategic planning played behind the bold brand decisions.

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.

Please provide any cultural context that would help the jury understand any cultural, national or regional nuances applicable to this work e.g. local legislation, cultural norms, a national holiday or religious festival that may have a particular meaning.

We applied our successful methodology from China to Moletele, South Africa, collaborating closely with farmers and government authorities. Together, we tackled common challenges, such as:

-Limes shortage.

-A high unemployment rate of 32.6%

-A low lime harvest rates of only 12% annually.

Through our joint efforts, we successfully overcame these obstacles, ensuring continuous lime production throughout the year and achieving remarkable results.

Interpretation

Due to a lime shortage in China caused by COVID-19, a major setback occurred for the brand's business growth. The brand's success in the world's largest beer market, driven by Corona's lime ritual, was compromised. At the same time, 20% of farming communities in Anyue province were living in poverty. In response, the brand demonstrated merit by navigating these challenges and connecting the dots.

Rather than merely addressing the issues, Corona Extra Lime project aimed not only to overcome challenges but also to create a sustainable solution. By establishing a working methodology involving governmental entities and farming communities, the brand developed a model that proved more valuable for export than the limes themselves. This approach not only tackled problems but marked a turning point to create the Extra Lime company, and endeavor that contributed to helped Corona´s business in other significant world markets (South Africa).

Insight / Breakthrough Thinking

Corona has been working hard to popularize its lime ritual among Chinese consumers. Despite 42% of these consumers 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 a Corona.

The main challenges faced were 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 for creating Extra Lime Company. This model transformed farmers into stakeholders, ensured high-standard lime production, and simultaneously provided consumers a satisfying lime ritual.

Creative Idea

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 / Results

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

Please explain if there were any other discounting factors that may have impacted on the effectiveness of your work.

Working together with the government, local industry authorities, and farmers was crucial. Without their partnership, we couldn't have put knowledge into practice, meaning we wouldn't have been able to harvest quality limes. Additionally, setting up a reliable transportation supply chain was vital to move the limes from the fields to our company and then distribute them to retailers and (POCs).

Please tell us how the brand purpose inspired the work

Corona is strongly committed to its projects, prioritizing a dedication to making a positive impact on the world. While awards are appreciated, the brand's primary focus is on contributing to a better world. The project "Extra Limes" had a significant positive effect on farmers, consumers, and businesses. This success inspired us to amplify its influence. Recognizing the value of exporting a successful methodology, rather than just the limes, we were able to expand into three new Chinese provinces and venture into South Africa—an important market for Corona, where we replicated the success achieved in China. This strategic decision has proven instrumental in our expansion efforts.

More Entries from AB INBEV

24 items

Silver Cannes Lions
HOW CREATIVITY HELPED AB INBEV TO GROW

End-to-end Transformation

HOW CREATIVITY HELPED AB INBEV TO GROW

AB INBEV, AB INBEV

(opens in a new tab)