Grupo Modelo, the Mexican company which brews Corona beer, has temporarily halted production as the country declared a health emergency over the COVID-19 pandemic. The Mexican government had ordered suspension of all non-essential activities until April 30 to slow the spread of coronavirus.
"We are in the process of lowering production at our plants to the bare minimum," Grupo Modelo, whose brands also include Pacifico and Modelo, stated on Thursday. It said it would go into suspension from Sunday.
As per the government orders, beer production has been deemed non-essential in the country. The government order says that only key sectors, such as agribusiness, will be able to continue to function.
Mexico has reported 1,510 cases and 50 deaths as of Thursday.
Meanwhile, Grupo Modelo said it was ready to operate with 75 per cent of its staff working remotely. "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 75per cent of our staff working from home and at the same time guaranteeing the supply of beer," the statement said. The group exports its beers to around 180 countries.
Grupo Modelo is part of the brewing group Anheuser-Busch InBev and operates 11 breweries in Mexico. Mexican beers make up almost 70 per cent of the imported beers sold in the US.
According to various media reports in Mexico, Heineken, another major beer producer in the country, is also likely to stop production activities soon. However, the company is yet to confirm the reports.
On Wednesday, the northern state of Nuevo Leon, where Heineken's Mexican operations are based, said it would stop the production and distribution of beer, which led to panic buying.
Since the start of the virus crisis, Corona beer has been the punchline of jokes and memes, and an online rumour said sales in the US dropped by around 40 per cent after the outbreak. However, in late February, Constellation Brands, which owns the Corona label in the US, denied the rumour and said sales had stayed strong in the US even as the virus has spread internationally.
