Corona Beer suspends production over coronavirus

Ross Houston
April 4, 2020

Corona beer's factory in Mexico is the latest victim of the coronavirus as Group Modelo, the beer company manufacturing and exporting the famous drink to 180 countries, made a decision to temporarily stop production and heed to its government's call to close non-essential businesses. By Thursday, the country had reported of at least 1,500 cases and 50 deaths.

Mexico's other major beer producer Heineken - which makes the Tecate and Dos Equis brands - could also stop activities on Friday, the Reforma newspaper said, although the company did not confirm the report.

The brewer, which also manufactures Pacifico and Modelo brand beers, is reducing production work down to the minimum necessary to resume production when restrictions are lifted.

Grupo Modelo is ready to enact a plan to "guarantee the supply of beer" if the Mexican government decides to include breweries as essential, according to a statement.

The suspension, which Grupo Modelo said would take effect on Sunday, was announced just days after the Mexican government, which has been slow to respond to the pandemic, declared a health emergency and stiffened rules aimed at slowing the virus.

Mexico's government has said that only key sectors such as agribusiness will be able to continue to function under current restrictions.

"We expect to have no disruption in our ability to produce product and deliver it to retail", Newlands said.

However, in late February, Constellation Brands, which owns the Corona label, denied the rumor and said sales had stayed strong in the United States even as the virus has spread internationally.

Corona beer has become a temporary victim of the coronavirus.

The company that imports the beer to America, Constellation Brands, says that sales went up 8.9% in the first three months of the year.

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