Covid-19: Grupo Modelo temporarily halts beer production in Mexico

AB InBev’s Grupo Modelo is temporarily stopping brewing of Corona beer and other brands in Mexico after production activities were declared non-essential under a government order due to increase in coronavirus cases across the country.

Mexico registered 1,510 positive cases of coronavirus Covid-19 and 50 deaths, reported Reuters.

Earlier this week, the Mexican Government declared a health emergency and issued an order to halt production of all non-essential products after Covid-19 cases surpassed 1,000 in the country.

This move by the government is aimed to minimise the spread of Covid-19.

The beer brands produced by Grupo Modelo are currently exported to 180 countries across the globe.

Grupo Modelo stated that the temporary suspension of all its beer brands production will be implemented from Sunday.

The firm has already begun the process of reducing production activities.

The statement said: “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% of our staff working from home and at the same time guaranteeing the supply of beer.”

In November 2016, Constellation Brands agreed to acquire a brewery in Obregon, Mexico from Grupo Modelo for $600m.

With the acquisition of Obregon brewery, Constellation aimed to enhance its functioning brewery capacity to support its growing Mexican beer portfolio and offer flexibility for future innovations.