Corona beer production suspended (but unrelated to its name)


Top line: Grupo Modelo has announced that it will stop both manufacturing and marketing of its Corona beer, among others, to comply with a Mexican government order to shut down reputable businesses not essential.

  • Mexican officials said on Monday a health emergency and ordered all non-essential operations to stop until at least the end of April.
  • Owned by Anheuser-Busch Inbev, Grupo Modelo operates 11 breweries in Mexico and manufactures Modelo and Pacifico beers for 180 countries, which will also suspend production.
  • Corona beer has reportedly suffered no decline in sales, despite its sadly similar name to the deadly virus.
  • The company said it was already in the process of reduce production, and that all operations would be shut down on Sunday.
  • However, Grupo Modelo said it was ready to implement a plan to “guarantee the supply of beer“if the Mexican government changes its mind and decides to include breweries as essential.

Key context:. According to Johns Hopkins University, Mexico has seen more than 1,500 confirmed cases of coronavirus and 50 deaths on Friday. Critics criticized President Andres Manuel Lopez Obrador for the government slow response to the developing pandemic.

Interesting fact: According to Sky News, the coronavirus got its name from the fact that the form of COVID-19 has a crown shape. Spanish

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the word for crown is crown, and crowns are featured heavily in the packaging and marketing of Corona beer.

Tangent: Sharing a name with the pandemic virus has not hurt sales, despite early reports that Americans have been confused by the name of the coronavirus resembling that of the beer brand. According to CNN, Constellation Brands

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, which manages the US distribution of Grupo Modelo beers, sales of its brands have grown by almost 10% in the first three months of this year, with Corona being one of its top sellers. Sales in the first weeks of March were
up 24% compared to a year ago.

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