The Mexican government has terminated the production of corona beers due to the massive pandemic of the novel coronavirus. The beer company Grupo Modelo has declared that this is the pause of production and marketing of corona beers because the government has closed down all the non-essential businesses.
Coronavirus pandemic has been crushing across the world. The unpredictable effects are ruining each of the corners in the societies. In this current scenario, the Mexican government has decided to terminate all non-essential businesses in public or private sectors until 30th April.
The only reason behind this crucial step is to curb the spread of the coronavirus. According to the report of Johns Hopkins, Mexico, is running with 1500 positive cases patients and 50 deaths.
Last Thursday, Grupo Modelo stated in an announcement that they would stop their
productions and marketing operations of its 11 breweries across the country by Sunday. This action will be imposed forcefully along with its other brands like Modelo, Pacifico, Leon,
Victoria and Estrella Jalisco. Those brands beer are export to 180 countries across the globe.
A Constellation Brand (STZ) in the United States handles the distribution and import of beers. Initially, Grupo Modelo has the plan to guarantee the supply of beers until and unless the Mexican government includes them in non-essential business. According to CEO Bill Newlands, in terms of earning calls, this company has an ample stock of beers that can meet the customer’s needs in any condition.
The coincidental name of Corona beer with the virus hasn’t decreased the sales of the
company. For the first three months of this year, the sales of this beer brand have grown up to 9% Corona and Modelo are the top-selling beers in these three months. The purchase of beers has also been accelerated in the first three weeks in March.
The sale of Mexican Beer increasing
According to the report of the company, the sale of beers rose up by 24% compared to the previous year. Other than Corona, Hand Seltzer which launched at the beginning of
March has off to a good start.
Due to lockdown, Americans are forced to buckle down in the presence of the novel coronavirus. As a result, rising in sales of these beers and other alcohols in this month.
Nielsen (NLSN) sales numbers indicate that beer sales are increased by 34% over the year.
According to the distributors of Grupo Modele, the US has an ample stock of Mexican beers for the next six weeks. So their customers shouldn’t run to stock up their favorite beers.
The termination of production will not hamper the sock of the US market. It is just scaling down the production of beers to such level and resume it when situations come under control or the termination once lifted.
Grupo Modelo has already donated 300000 numbers of sanitizer bottles to the hospital and health care sectors as a social response to the coronavirus pandemic. Grupo Modelo stated that, if the federal government considered them in an appropriate way by confirming beer as an Argo industrial product, then they will initiate a business plan to work with 75% of their stuff and work from home.
In this meantime, they will guarantee the supply of beers across the US. Food production and agriculture are listed in the essential businesses by the Mexican government.
There are 15000 families and 800000 grosser in the US market, lives on this beer production and sale them for income. So this will help these families for stabilized their daily income. The government has identified that Argo-industries are essential for the country.
Beer is being part of these industries as an essential component and export product. The reason to stop production and marketing of corona beer, as its business activities come under the non-essential business lists of the Mexican government. To curb the spread to this pandemic novel coronavirus is the priority of the Mexican government.
The only aim is to protect the people of Mexico from this fatal devastation. This shut down will help Mexico to fight back with the novel coronavirus. Termination of production is to stop the business activities to some extent and resume it once the suspension is lifted. It is a medical emergency where the Mexican government has decided to shut down all public and private business sectors.
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