12 oz. bottles of Corona Extra by Cervecería Modelo, part of Constellation Brands

Beer is in short supply after the government of Mexico shuttered breweries last month.

Convenience Stores in Mexico Are Almost Out of Beer

This article originally appeared here.

Share This Article

Fomento Economico Mexicano SAB, which operates Latin America’s largest chain of convenience stores, said its Oxxo stores in Mexico are quickly running out of beer after the government shuttered breweries as non-essential businesses last month.

Convenience stores like this Oxxo in Mexico City may only have two weeks of beer inventory left.

Convenience stores like this Oxxo in Mexico City may only have two weeks of beer inventory left.

The company, known as Femsa, told analysts in a conference call on Thursday that it was unclear when Mexican breweries run by Anheuser-Bush InBev’s Grupo Modelo and Heineken N.V. would be able to start operating again.

“If and when we run out of beer, which could happen in the next couple of weeks, that would be negative for sales,” Juan Fonseca, Femsa’s head of investor relations, said on a conference call with analysts. “I don’t want people to get off the call and run to the store, but right now we are probably looking at about 10 days of inventory.”

Femsa CEO Eduardo Padilla said that running breweries doesn’t represent a significant health risk and he hoped they would find a way to start operations soon. However, he said beer’s role as a “social lubricant” could be seen getting in the way of the government’s call to stay at home.

“I think the government might be afraid if they drink beer, there will be more social interaction,” Padilla said in the call with analysts.

President Andres Manuel Lopez Obrador declared a national health emergency at the end of March and called for a halt to non-essential activities that included most manufacturing. Mexico’s shutdown is causing supply-chain disruptions for U.S. factories that continue to run.

Cuauhtemoc Rivera, head of small merchants’ association Anpec, said that beer prices had risen 30% at family-run shops known as changarros, daily El Universal reported. Beer companies have lobbied the government to restart and have stressed the dependence of small stores on beer sales.

“What really concerns me more is that there are a lot of changarros in Mexico that live by selling beer, and I think the changarros are being hit dramatically,” Femsa’s Padilla said.

Constellation Brands, which makes Corona and Modelo beer for export to the U.S., has continued some manufacturing in Mexico, Barclays analyst Lauren Lieberman said in an April 29th note. She estimated Constellation “has ample supply to meet demand through the end of October.”

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Latest Craft Beer News

Beer Lab HI Releases “Chai Yo” Belgian-style Blond Ale

The latest limited release from Beer Lab HI, the “Chai Yo, Thai Tea & Milk Sugar Ale”, a Belgian-style Blond Ale, is now available from the Honolulu-based brewery. Read More

Bell’s Brewery to Auction Two Hearted Ale Hockey Jerseys to Benefit Local Organizations

Bell’s Brewery, Inc. and Kalamazoo Wings have teamed up to support two local organizations with a special, limited edition Two Hearted hockey jersey auction. Read More

Upper Hand Brewery Expands Distribution to Michigan’s Mitten

Upper Hand Brewery will end its drought of availability below the Mackinac Bridge with the distribution of its beer to Michigan’s Lower Peninsula this Fall. Read More