COVID-19 pandemic has now forced renowned breweries like Corona, Budweiser and Heineken to suspend their production indefinitely.
With each passing day, the effect of the coronavirus pandemic around the world just keeps escalating. A complete lockdown has been imposed in most of the countries to prevent the spread of the virus. Businesses, institutes, organizations, factories – all have been shut. Joining this continuous process of shutdowns are now some world renowned breweries like Corona, Budweiser and Heineken. These global brewers’ decision of shutting down their production plants comes as a move to combat the COVID-19 pandemic. So, if you are a beer lover, you would most likely want to have your stocks ready.
Highlights! COVID-19 pandemic may lead to shortage of beer this year.
- Grupo Modelo has suspended the production of its Corona beer due to COVID-19.
- Heineken and Budweiser have already shut down their brewery units in China.
- Coronavirus pandemic is expected to cause a heavy drop in sales for these global brewers worldwide.
COVID-19 suspends Corona beer production
Yes, that’s right. But it’s obviously not because of those funny social media jokes and memes.
The Mexican brewer of Corona beer has decided to suspend its production in the region due to the health emergency in the country because of the COVID-19 pandemic. Grupo Modelo, the parent brewery of Corona beer, explained that the decision was in support of the Mexican government’s move to shut all non-essential activities until 30th April to contain the spread of coronavirus.
“We are in the process of lowering production at our plants to the bare minimum.” – Grupo Modelo
The company has said that if the Mexican government agrees, it’s ready to work with 75% of its staff to meet the beer supply.
Ever since the coronavirus outbreak started, Corona beer has been in the firing line on social media. There have been rumours of the drop in sales of the beer in the US by 40%. However, the rumours were later denied by Constellation Brands – the owner of Corona label.
Heineken and Carlsberg join COVID-19 battle
Grupo Modelo isn’t the first brewery to join the coronavirus battle.
In January 2020, when the coronavirus outbreak was on escalation in China, Heineken had restricted business travels for its employees to the country. The Dutch company had released a statement stating that it was taking every “precautionary measures” to protect its employees in China and around the world against coronavirus.
Carlsberg, which operates number of breweries in China, had stated that they were ready to tackle any situation if it arises. However, the company abstained from commenting on the effect of coronavirus on its production in China.
COVID-19 set to hurt Budweiser
The COVID-19 is already hurting many businesses and the virus has steadily crept into the brewery industry too. All sorts of brands – big and small – are facing the coronavirus heat at the moment.
Following the coronavirus outbreak, Anheuser-Busch InBev (BUD) had suspended the production at its brewery in Wuhan – the epicenter of the coronavirus pandemic. A report published by Yahoo Finance in March, predicted that the sales for Anheuser-Busch InBev (BUD) were expected to go down in China as the coronavirus gripped the country.
According to the report, “China comprises about 9% of Anheuser-Busch Inbev’s estimated $55 billion in annual sales this year (as predicted by beverage analyst Laurent Grandet). With the country at a virtual standstill — and no signs of economic activity picking up aggressively this month (March) as coronavirus fears run rampant — demand for beer sales is likely to fall off a cliff.”
With COVID-19 gripping all sectors, it was only a matter of time before it crept into the brewery industry. The pandemic has forced a real challenge for the global brewers to re-establish their sales into the market.