Sales of Corona, America’s best-selling imported beer, are rapidly increasing, which could ultimately prove to be the bane of its existence.
The Wall Street Journal reported on Monday that Corona’s brewer, Constellation Brands Inc., could be running into trouble keeping up with demand due to some logistical issues with distributing across borders.
According to WSJ, Constellation received distribution rights for Corona in 2010, along with Modelo and Pacifico, after Anheuser-Busch bought the brands from Modelo Group, which caused the U.S. government to file an antitrust suit. A-B InBev then handed the production reigns over to Constellation, a former winemaking company, to settle things—or so they thought.
In an agreement with the U.S. Justice Department, Constellation had until next June to assume all production activities of Corona, Modelo and Pacifico; they’re currently working with only half of the production. That meant the company would have to adapt from making wines such as Robert Mondavi to becoming the third-largest beer maker in America.
Constellation is working on a $2 billion project to expand the brewery to a second site and is doubling the capacity of its original brewery, in Mexico. Even with breweries in the making, the president of Constellation’s beer department tells WSJ that running out of beer is his biggest fear. Perhaps Corona lovers can try other beers and spread the wealth in the meantime, giving time for the Constellation team to catch up.