Amid coronavirus chaos, Corona is not the best brand name. Or is it?

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Updated 14 March 2020
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Amid coronavirus chaos, Corona is not the best brand name. Or is it?

  • Staff of Egypt's famous Corona chocolate company claim positive impact of the outbreak on sales
  • Marketing challenge coincides with pandemic's growing threat to tourism-dependent economy

CAIRO: Up until recently, Egyptians associated the word “Corona” with a venerable chocolate-manufacturing company.

However, after the emergence of the new coronavirus, the name has taken on a whole new meaning.

Many Arabs familiar with Corona confectionary have been pondering as to whether the global outbreak has impacted on sales and damaged the brand’s image.

As counterintuitive as it may seem, Ahmed Shaaban, Corona’s sales manager, said the health crisis has had the opposite effect.

He pointed out that sales had increased as the coronavirus infection spread from Wuhan in China, where it originated, around the globe. It has now been officially declared a pandemic by the World Health Organization (WHO).

“Egyptians have been buying more Corona chocolate bars. Many visit our stores to joke with the staff about the relationship between the virus and chocolate. The conversation usually ends up with the purchase of our chocolate,” Shaaban added.

Mohamed, a salesman at a Corona outlet, said: “The association of our product name with the name of the virus has encouraged many people to buy our products.” Jokingly, he added: “The virus has been the best advertising we’ve ever had.”

On a serious note, the outbreak is posing a growing threat to the Egyptian economy, with pressure on tourism, trade and gas exports, according to a Reuters report.

The country has recorded at least 80 infection cases, many of whom were on a Nile cruise ship in Luxor, where its Pharaonic temples are a major tourist attraction.

Tourism, which had rebounded after the 2011 uprising in Egypt, has been showing the first signs of a slowdown.

But Egyptians are not holding back on buying their favorite chocolate.

“I was raised on Corona chocolate, and I passed my love for it down to my children,” Amani Wajid, a cinema employee in Cairo, told Arab News.

“The coincidental link between coronavirus and Corona chocolate has given rise to jokes at home, but at the end of the day we love Corona chocolate.”

Corona, originally called the Royal Chocolate Co., was founded in the Egyptian city of Ismailia in 1919.

The factory’s headquarters later moved to the coastal city of Alexandria, and the company’s name was changed to Corona. At the time, the owner was a Greek businessman named Tommy Christo, whose reputation for magnanimity has outlived him among his employees.

“Christo used to treat the staff with great generosity, and gave them excellent salaries and bonuses,” Shaaban said. “He used to give out movie tickets to employees, workers and their families, and also distributed boxes containing a large selection of Corona products at the beginning of each year.”

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Several years after the revolution of 1952, led by the Free Officers Movement, the Corona Co. was nationalized through a decree by then President Gamal Abdel Nasser.

The merger of Nadler Confectionery Co. with Corona and Al-Hawamdiya Factory gave birth in 1963 to a nationalized industrial asset, Alexandria Chocolate and Confectionery Co. Mohamed Rashad Zaki, an engineer, was appointed chairman of the board.

In 2000, when a downturn in the global economy hit Egypt hard, Corona witnessed a drop in its market share. The company was sold to the Sami Saad Group in 2000 as part of a larger government program of privatization and economic reform.

Shaaban said that due to its dependence on imported manufacturing materials, Corona was adversely affected by the rise in the value of the dollar against the Egyptian pound in 2016.

Since then, the business has been substituting imported raw materials with local commodities in an attempt to reduce its exposure to foreign-exchange fluctuations.

Although privatization failed to halt the decline in Corona chocolate sales, the firm has been on a recovery path in recent years as a leading FMCG company locally in the sandwich-biscuit and cocoa categories.

The practice of selling Corona products exclusively through its outlets has been discontinued in favor of arrangements with supermarkets, including Hyper One, Zahran and Seoudi.

Corona exports about 15 percent of its production and aims to expand in the US, Libya, Tunisia and Kenya.

“We aim to increase our exports to 20 million Egyptian pounds ($1.3 million) during 2020, as opposed to 10 million pounds in previous years,” Shaaban added. “We have drawn up a plan to increase the number of distributors for our products in Egypt in order to raise the growth rate by 40 percent by the end of the year.”


Alexandria bids farewell to historic tram in latest urban upheaval

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Alexandria bids farewell to historic tram in latest urban upheaval

  • For over 160 years, the tram has cut through Alexandria’s heart, in an 11-kilometer stretch that includes many of the city’s schools and main universities

ALEXANDRIA, Egypt: Along Egypt’s Mediterranean coast, the oldest tram in Africa and the Middle East rumbles for a final few weeks before its removal — the latest urban upheaval Alexandrians say is hollowing out their city’s identity.
Government plans to replace the colorful streetcars on one of the city’s routes with a partially elevated light rail line have angered Alexandrians, for whom the 163-year-old track is “heritage, not just a means of transport,” local urban researcher Nahla Saleh told AFP.
Inaugurated in 1863, the tram is one of the world’s oldest, and among only a few to operate double-decker cars.
In the 19th and 20th centuries, it helped the city become a bustling metropolis, home to sizable European diasporas and a distinct cosmopolitan culture.
Now, Egyptians young and old have flocked for farewell rides, before the streetcars come to a halt in April.
As one locomotive screeches into the old El-Raml Station, commuters and visitors crane their necks out of giant windows at the historic neo-Venetian buildings overhead.
“We’re not against progress,” psychologist and writer on culture Mona Lamloum told AFP.
She and other Alexandrians agree the tramway needs work: inside the hand-calligraphied blue exterior, grime covers every surface. Underfoot, the rubber flooring is torn and strewn with trash.
“We just have bad experiences of everything they call ‘progress’ becoming synonymous with destruction,” Lamloum said.
In recent years, development projects in Egypt’s second city have razed historic parks and — most egregiously to locals — privatised and obstructed much of its Mediterranean coastline.

- Heart of Alexandria -

For over 160 years, the tram has cut through Alexandria’s heart, in an 11-kilometer stretch that includes many of the city’s schools and main universities.
The new project, led by Egyptian and international companies including Systra, Hyundai and Hitachi, promises to double speed and triple capacity.
Over half of it will be elevated — a major concern for Alexandrians who fear the tree-lined track will be replaced by eyesore concrete stilts.
Ahead of the first phase of suspension, the transport ministry said the new project was the “only solution to the city’s traffic problems.”
Locals like Saleh and Lamloum disagree, saying government plans are making the city more car-dependent and worsening traffic.
Already, because so many students rely on the tram, the city has staggered school and university hours to pick up the slack of the partial shutdown.
“Traffic’s getting worse, people can’t get anywhere, when we’ve already lost the inner-city train,” said Saleh, referring to another project under construction for the past two years, the new Alexandria Metro Line.
“Besides, it being slow was always an advantage,” she added, making it safe for “the most vulnerable in society: children and the elderly.”
Retired science teacher Hisham Abdelwahab, 64, has been riding the tram since he was a child.
“I don’t want it to go fast, I like watching the world go by,” he told AFP on a station bench.
“Our parents never thought twice about sending us out on the tram alone. Now I have a car, I just like leaving it parked to come ride the tram.”
When the next streetcar rolls in, the upper deck fills with a gaggle of schoolgirls, squabbling over who gets the window seat closest to the sea breeze.

- The old tram and the sea -

“This tram is our heritage,” Abdelwahab said, his sentiment shared by those several decades younger.
Engineering student Mahmoud Bassam, 24, has visited Alexandria just to ride the streetcar “since our tram in Cairo was removed,” he told AFP.
With a controversial slew of bridges and widened streets completed in 2020, Cairo’s historic Heliopolis neighborhood lost its last tram tracks, along with many of its trees.
“Now the same is happening here,” Bassam lamented.
Many Alexandrians are feeling the loss, intermingled with their other most treasured heritage.
“It’s like the sea. We used to go for long scenic drives on the corniche, but now we’re losing both the sea and the tram,” Abdelwahab said.
Parallel to the tramway, much of Alexandria’s iconic corniche is now hidden behind overpasses, private businesses and beachside food courts.
By 2024, over half of the city’s Mediterranean coastline had disappeared from view, according to a study by the Human and the City for Social Research center.
Four-lane highways now dominate long stretches of the seaside, where the landmark sight of fishermen perched over the waves grows ever-rarer.
For many, the waterfront that Lebanese singer Fairouz immortalized in 1961 — crooning about “the coast of Alexandria, coast of love” — is no more.
“Now all you see is concrete,” said Lamloum.
Saleh calls it “short-sighted” that the city could lose its charm to sprawling concrete.
“Tourists used to love coming to see the tram and sit by the sea, why take away both?“