AB InBev has announced it will ceased production of Corona beer in Mexico due to COVID-19 restrictions.
The brewer's Mexican subsidiary, Grupo Modelo, operates 11 breweries in Mexico and produces Corona beer and other brands for 180 countries. The breweries will close on Sunday.
The move follows the Mexican government ordering that non-essential businesses close until April 30.
Mexico has seen more than 1500 confirmed coronavirus cases and 50 deaths as of Friday.
Grupo Modelo is hoping the Mexican government will change its mind and declare brewing an essential agro-industrial industry.
“We are one of the first companies in Mexico that has implemented and strictly followed the hygiene and safety recommendations of the Mexican government and the World Health Organization,” Grupo Modelo said.
Heineken, which makes Mexican beers Dos Equis and Tecate, said on Friday that it will also suspend production and distribution from its seven plants in Mexico.
Aussie brewers urge against shutting down beer production
Last month, Lion and CUB said closing breweries in Australia could lead to a three-month beer shortage, as it is difficult to restart plants after they are turned off.
Lion Australia managing director James Brindley told the Australian Financial Review: “You can’t turn off and then quickly turn back on major breweries like Tooheys.
“After re-opening, there could be up to three months of no beer for pubs or bottle shops because it takes that long to grow the quantity of yeast needed.”
He added: “Our breweries are 100% able to operate under strict health and safety rules.”
CUB vice-president of corporate affairs Julian Sheezel told the AFR that the company was ”greatly concerned about no beer being available in Australia for at least three months if beer is not given exempt status, and what this would mean for tens of thousands of jobs” if they were shutting down."
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