Corona beer stops production – CNN

Apr 4, 2020 2:50 AM ET

Grupo Modelo, the company that makes the beer, posted the announcement on Twitter, stating that it has stopped producing and marketing its beer because the Mexican government has not closed any significant deals. The Anheuser-Busch Inbev company also produces beers from Modelo and Pacifico.

This week, the Mexican government announced that it would suspend non-essential public and private sector activities by April 30 to curb the spread of the virus. According to Johns Hopkins, the country has more than 1,500 cases and 50 deaths.

The Grupo Modelo is ready to adopt a plan to “ensure beer supply” ; if, according to a statement, the Mexican government decides to include breweries as essential.

Constellation Brands (STZ) takes care of the distribution and import of Grupo Modelo beers in the USA. CEO Bill Newlands said in a call for profits that the brand had “enough supply to meet consumer demand” and did not expect any shortages in the short term.

Corona’s random name with the virus didn’t affect sales. According to Constellation, sales of its beer brands grew 8.9% in the first three months of this year, with Modelo and Corona being the top sellers. Sales accelerated in the first three weeks of March. The beer had grown by 24% compared to the previous year.

Corona Hard Seltzer, which launched in early March, has also had a “strong start”, according to a company earnings announcement.

Sales of beer and other alcohol are increasing this month as Americans are forced to settle in the face of the corona virus. Sales of Nielsen (NLSN) Show beer sales increased 34% year over year in the week ending March 21.

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