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(Mexico calls a halt to Corona production)
This newsflash isn’t going help the once amusing confusion between the popular Mexican import and the coronavirus…but it what it is so here’s the deal.
On April 3, Grupo Modelo, the Anheuser-Busch InBev-owned company that produces Corona, took to Twitter to announce that it was halting production and marketing of its bestselling beer because the Mexican government has shuttered non-essential businesses due to the coronavirus.
On March 30 the Mexican government announced the suspension of non-essential activities in the public and private sectors until April 30, in the country which already has more than 1,500 cases and 50 deaths, according to Johns Hopkins.
(Let the hoarding begin)
According to its tweet, Grupo Modelo is ready to enact a plan to “guarantee the supply of beer” (not exactly sure what that means…but okay) if the Mexican government decides to include breweries as essential.
Constellation Brands handles the distribution and import of Grupo Modelo’s beers in the US.
In an earnings call with investors and analysts on April 3, Constellation Brand CEO Bill Newlands said that the Victor, NY-headquartered drinks giant has “ample supply to meet consumer demand” and that it doesn’t project any Mexican beer shortages in the near term.
“In Mexico, they have obvious concerns for their entire economy, as our country has great concerns for our economy, to make sure that people are being protected. And I think the kind of steps that we’re taking to make sure that we’re protecting our people we believe is best in class.”
Corona’s coincidental name with the virus evidently hasn’t impacted the company’s most recent quarterly sales. Constellation’s beer brands grew 8.9% for the first three months of this year, with Modelo and Corona being its best sellers.
Additionally on April 4 Modelo announced a partnership with #FirstRespondersFirst, an initiative of to support US healthcare workers battling the coronavirus.
Modelo is making a $500,000 donation to the initiative to provide essential supplies, equipment, and resources to protect healthcare workers on the frontlines. It will also be redirecting its marketing resources towards the effort to help raise awareness of #FirstRespondersFirst via a national television advertising campaign airing this spring.
