Corona beer stops production

Discussion in 'Beer News' started by traction, Apr 3, 2020.

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  1. traction

    traction Initiate (0) Dec 4, 2010 Georgia
    Trader

    Full article @ https://www.cnn.com/2020/04/03/business/corona-beer-production/index.html
     
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  2. jesskidden

    jesskidden Grand Pooh-Bah (3,145) Aug 10, 2005 New Jersey
    Society Pooh-Bah Trader

    The US-marketed Corona, Modelo and other brands is not brewed by "The Anheuser-Busch Inbev-owned Grupo Modelo"... but by at the Constellation-owned Mexican breweries, but, obviously, those would also be closed by the same Mexican Goverment-ordered suspension.
     
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  3. traction

    traction Initiate (0) Dec 4, 2010 Georgia
    Trader

    You are much more knowledgeable about the subject than I am but the article goes on to say the following:

    Constellation Brands (STZ) handles the distribution and import of Grupo Modelo's beers in the United States. CEO Bill Newlands said in an earnings call the brand has "ample supply to meet consumer demand" and doesn't expect shortages in the near term.

    I would hardly be surprised if CNN got the details wrong.
     
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  4. JBogan

    JBogan Pooh-Bah (1,871) Jul 15, 2007 California
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    Wouldn't be the first time, lol. :smirk:
     
  5. jesskidden

    jesskidden Grand Pooh-Bah (3,145) Aug 10, 2005 New Jersey
    Society Pooh-Bah Trader

    US-based Constellation Brands owns the breweries in Obregon, Sonora and Nava, Coahuila and recently agreed to stop building a third brewery in Mexicali, Baja California over local water shortage concerns.

    Of course, in theory AB-InBev could brew Corona and the other GM brands in their US breweries and export them to Mexico to prevent shortages. Constellation, OTOH, can't do that (well, they do still own that Virginia brewery that was built for Ballast Point - don't think it's got quite enough excess capacity to make much difference given their 20 Million Barrel US market:grin:).
     
    #5 jesskidden, Apr 3, 2020
    Last edited: Apr 3, 2020
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  6. EmperorBatman

    EmperorBatman Zealot (741) Mar 16, 2018 Tennessee

    Does Mexico feel that brewing beer will deprive other culinary industries of necessary grain and corn, and that a potential shortage of grain might become a problem?

    I’m surprised they aren’t considering the export asset that beer is for the Mexican trade economy.
     
  7. jesskidden

    jesskidden Grand Pooh-Bah (3,145) Aug 10, 2005 New Jersey
    Society Pooh-Bah Trader

    AB-InBev-owned Grupo Modelo breweries likely get their hops from the US, and malt from Idaho:
    Years ago I read that their corn syrup came from Minnesota.

    Constellation, brewer of the Corona/GM brands sold in the US is not very forthcoming about their ingredients, listing their adjunct as "Non-Malted Cereals", origin unknown.
     
  8. SunDevilBeer

    SunDevilBeer Pooh-Bah (1,945) May 9, 2003 Massachusetts
    Pooh-Bah

    I work for a US industry considered “essential” & have several key Mexican supply chain partners that will shut down as well. This is going to get really bad. Ugh.

    Note, I don’t disagree that these partners should shut down.
     
  9. jesskidden

    jesskidden Grand Pooh-Bah (3,145) Aug 10, 2005 New Jersey
    Society Pooh-Bah Trader

    Recent Constellation announcement re: Corona and Modelo-branded beers exported to the US:
     
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