Corona beer production ends on back of COVID-19 fears
The ongoing coronavirus pandemic has forced major closures across the globe and now it's closed the taps on Corona beer as well as shutting down several breweries across Mexico.
As the outbreak began to sweep across the world, sales of the once popular beer began to take a hit with Constellation Brands' stock price dropping 12 per cent across two days.
A poll by 5W Public Relations found that out of 737 beer drinkers in the United States, 38 per cent wouldn't buy a Corona "under any circumstances" because of the outbreak.
The closure of the breweries and suspension of production across Mexico comes after the government ordered non-essential businesses to keep their workers at home.
With more than 1500 cases and 50 deaths in Mexico, the decision was made to suspended non-essential activities for at least the month of April to slow the spread of coronavirus.
Grupo Modelo, the maker of Corona and other popular brands, said it would suspend its operations at plants around the country by Sunday. The company pointed out in a statement that thousands of farmers depend on it buying their grain.
The brewery said it was scaling down its operations to a "bare minimum" in line with the Mexican government's orders but suggested it could keep brewing beer if its operations were deemed to be agriculture.
Agriculture and food production are among the key sectors which are still allowed to function under Mexican government orders.
"If the federal government considers it appropriate to issue some clarification confirming beer as an agro-industrial product, at Grupo Modelo we are ready to execute a plan with more than 75 per cent of our staff working from home and at the same time guaranteeing the supply of beer," a statement from the company read.
Dutch brewer Heineken also announced it was suspending production at its plants and would stop distribution by Sunday in Mexico. Some Mexican states have also imposed dry laws that restrict the sale of alcohol during the health crisis.
- with wires
Originally published as Virus sees Corona beer halt production