World News

Corona beer maker Constellation to reduce production in Mexico during pandemic

(Reuters) – Constellation Brands Inc <STZ.N>, the U.S. distributor of Corona beer, said on Wednesday it would reduce production at its Mexican breweries, just days after it announced they were fully operational.

The company said it was taking these additional steps to avoid “irreversible impact” to its operations and that the actions were in line with those taken by other brewers in Mexico.

Last week, Constellation said its breweries in Mexico were still operational even as rivals such as AB InBev-owned <ABI.BR> Grupo Modelo and Dutch brewer Heineken <HEIO.AS> suspended operations after Mexico declared a health emergency and ordered the suspension of non-essential activities.

“We are taking these additional steps after gaining more clarity related to the Mexican government’s response to this health and economic crisis,” Constellation Chief Executive Officer Bill Newlands said in a statement.

Newlands added that its supply to the United States would not be disrupted despite the reduced production activity.

(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Maju Samuel)