After Mexico deemed the business non-essential, Corona will cease the production of its beer for the time being.
Grupo Modelo, the company that brews Corona Extra, announced on Twitter it will halt the production and marketing of its beers. Grupo Modelo, which is owned by Anheuser-Busch Inbev, also produces Modelo and Pacific beers.
The decision to temporarily stop producing beer comes after the Mexican government shuttered all non-essential businesses as it prepares for lockdown, to slow down the spread of COVID-19. On Thursday, April 2, all businesses closed, except what is considered essential, including pharmacies and supermarkets. The lockdown will be in place until April 30, a date many other countries, including the United States, have set as the target for their stay-at-home orders.
According to John Hopkins, as of April 3, Mexico has 1,500 cases and 50 deaths related to coronavirus.
According to the official statement, Grupo Modelo says it's prepared and has an alternative plan to guarantee the supply of beer if the Mexican government were to include breweries as essential.
“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 percent of our staff working from home and at the same time guaranteeing the supply of beer,” the statement said.
Even though production will stop as of Sunday, April 5, the company does not expect there to be a shortage of Corona. Constellation Brands, which handles the distribution and import of Grupo Modelo's beers in the United States, stated the brand has "ample supply to meet consumer demand" and it doesn't anticipate a shortage of its products in the short-term.
The statement finished with a promise of Grupo Modelo's commitment to curb the spread of COVID-19 by donating 300,000 bottles of hand sanitizer and other future projects.
Corona's sales have not been affected by the coincidental name with the virus. Sales accelerated for the first three weeks of March, said the company, its beers growing 24 percent in comparison to last year. However, due to the pandemic, the breweries had begun to slow production in the past month.
Grupo Modelo operates 11 breweries in Mexico and production will stop temporarily as of Sunday, April 5.