Constellation to Reduce Brewery Production Activities in Mexico

By Michael Dabaie

Constellation Brands Inc. said it is taking additional steps to reduce its brewery production activities in Mexico.

The beverage company said the 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 pandemic.

The company said that over the past several weeks, it has shifted resources to accelerate production of high-volume products and built substantial product supply across its warehouse and distribution network in the U.S.

The company said it is confident in its ability to continue meeting the needs of U.S. consumers and doesn't expect any near-term service disruptions to retailers or consumers.

Shares were up 3% premarket, to $154.

"We are taking these additional steps after gaining more clarity related to the Mexican government's response to this health and economic crisis. 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," said Chief Executive Bill Newlands.

Write to Michael Dabaie at [e-mail]

(END) Dow Jones Newswires

April 08, 2020 09:14 ET (13:14 GMT)

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