April 7, 2020
It’s not a good thing when your brand name is eponymous with the name of a worldwide pandemic. That’s the case for Corona beer—but the parent company of the popular brew, Mexico City-based Grupo Modelo, stated on Twitter this week, that is not the reason why the brand has halted production and marketing.
The company is closed, Grupo Modelo said, because the Mexican government has shuttered non-essential businesses. The Anheuser-Busch InBev-owned company also makes Modelo and Pacifico beers, according to a report by CNN.
Indeed, the Mexican government has announced the suspension of non-essential activities in the public and private sectors until April 30 in an effort to curb the spread of the novel coronavirus. To date, the country has suffered more than 1,500 cases and 50 deaths, according to Johns Hopkins Medicine.
Grupo Modelo is ready to enact a plan to “guarantee the supply of beer,” if the Mexican government decides to include breweries as essential, the company said.
Constellation Brands 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.
What’s more, Corona’s coincidental name with the virus hasn’t dented sales. Constellation said sales of its beer brands grew 8.9% for the first three months of this year, with Modelo and Corona being its top sellers. Sales accelerated in the first three weeks of March, the company said, with its beers growing 24% compared to a year ago.
Corona Hard Seltzer, which launched in early March, is also off to a “strong start,” according to a company earnings release.
Research contact: @CNN