To the shock of many, alcoholic beverage production was listed as a nonessential business during the shutdown to aid social distancing. Then came the beer hoarding.
Mexico has 1,688 confirmed cases of COVID-19, with 60 deaths due to the virus. Among the nonessential businesses ordered shut down on Tuesday were restaurants, bars, and nightclubs, all big purchasers of Mexico's beer and spirits industry.
That reportedly got Mexico's three major beer companies – Constellation Brands, Anheiser-Bush InBev, and Heineken – lobbying Mexico's president to designate their production as essential, as he has for other agribusinesses. Not to be left out, the governor of Jalisco state, home to the city of Tequila where Mexico's most favorite spirit is cultivated, is pushing for an exemption.
On a quarterly earnings call Friday, Constellation Brands CEO Bill Newlands didn't say when production of its beers, which include the Corona label for export as well as Pacifico and Victoria brands, might stop, said Benj Steinman, publisher and editor of Beer Marketer's Insights."It was not clear on the call, it was a little strange and difficult to discern what their plan is," he said.
Constellation Brands is assuring American beer lovers not to worry. The company says it has a 70-day supply of beer already in U.S. warehouses. That's enough to get through the two upcoming big sales days in the U.S. for Mexican beer .... Memorial Day and of course Cinco de Mayo.
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