Dear Client: 

This morning, Constellation issued a press release on the situation in Mexico. Recall, there was a recent federal decree shutting down non-essential operations in the country, wherein bev alc was included. 

Bottom line: They’re not completely shuttering, but they are reducing operations, per several safeguards. 

Today’s announcement promises “additional steps” to “reduce its brewery production activities in Mexico to a level that safeguards the environment and avoids irreversible impact to its operations. 

“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. 

Constellation chief Bill Newlands said they’re instituting these measures “after gaining more clarity related to the Mexican government’s response to this health and economic crisis.”

As we understand, they’re making several changes at their Nava and other Mexican facilities, including:

• Reducing operational shifts throughout the day and the number of employees on-site
• Asking all office personnel and other non-critical roles to work from home
•  Instituting daily pre-shift wellness checks for the reduced number of critical roles at our facilities and monitoring employees throughout the day
• Instituting social distancing practices to ensure employees avoid close contact with others
• Putting processes in place to limit contact between any external business partners (e.g. transportation providers) and Constellation employees
• Requiring the limited number of critical employees at our facilities to adhere to preventative measures to stay safe and healthy as outlined by the World Health Organization
• Increasing and enhancing daily cleaning and sanitizing practices at production facilities above and beyond our already high standards
• Putting processes in place to support employees through this process (as needed) including pay and benefits continuation
• They’re also looking at ways to recognize our production employees who continue to come to work each day at their facilities

WHY UPDATE NOW? Reports surfaced late last week in Spanish media that one or more workers at Nava may have tested positive for COVID-19 (with the lead suspected case having contracted it outside of the brewery, in Cancun); according to these reports, the company reinforced security and health measures at the brewery and offered workers bonus pay. 

Constellation told BBD such reports are “inaccurate” and that they are completely independent of today’s announced measures.

“In regards to the incident referenced,” Constellation told BBD, “we did have an employee who developed symptoms while at work in an isolated area of the brewery.  This person was immediately isolated and asked to go to the doctor, where they were tested and diagnosed with COVID-19. As a precaution, the limited number of employees working in the general vicinity were asked to stay home and monitor their health for a period of 14 days, per our standard protocol.  The area where the impacted employee worked has gone through deep cleaning and sanitizing (above and beyond our already high standards) to ensure the continued well-being of employees. And our brewery continues to operate.” 

 Stay tuned. 

Until tomorrow,

Harry, Jenn and Jordan

“The scientific nature of the ordinary man

Is to go on out and do the best you can.”

– John Prine

———- Sell Day Calendar ———-

Today’s Sell Day: 6

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YTD sell days Over/Under:  +1