Constellation Brands, which sells Mexican import offerings Corona, Modelo and Pacifico in the U.S., is scaling back production at its facility in Nava, Mexico.
The move is a reversal of course from last week’s earnings call in which the company said it would continue production, despite a decree from the Mexican government that deemed breweries non-essential businesses and ordered them to close until the end of April.
“We are taking these additional steps after gaining more clarity related to the Mexican government’s response to this health and economic crisis,” Constellation CEO Bill Newlands said in a press release. “These most recent actions are in addition to aggressive steps the company had already implemented to keep our team members and visitors to our facilities safe.”
Before the decision to curtail operations, the company was taking employees’ temperatures upon arrival and staggering shifts to promote social distancing.
Newlands estimated on the earnings call that Constellation had 70 days of inventory stocked up at warehouses and wholesalers, with 80% of the stock in the U.S.
Other global brewers with Mexican operations announced that they would cease production and comply with the order.