Constellation Brands to reduce brewery operations in Mexico after government deems it non-essential

Constellation Brands Inc. said Wednesday it is reducing brewery production in Mexico to a level "that safeguards the environment and avoids irreversible impact to its operations." The move comes after the Mexican government deemed beer brewing a non-essential activity during the coronavirus pandemic. "This move is consistent with actions taken by other brewers in Mexico and will help ensure the company's ability to restore operations once Mexico's federal government lifts restrictions placed upon the business community in response to the COVID-19 outbreak," the company said in a statement. Chief Executive Bill Newlands told analysts on the company's earnings call last week that the company would continue brewing in Mexico, even after rivals shut their plants down. Newlands said the company has 70 days worth of inventory, about 80% of which is in the U.S. Constellation is the owner of the Corona beer brand, among others. Shares rose 2.8% premarket, but are down 21% in the year to date, while the S&P 500 has fallen 18%. Read More...