The covid-19 pandemic affected beer more than tequila
The pandemic had a great impact on alcohol sales worldwide. In fact, during this period, a great difference was noticed between beer and tequila in Mexico.
In Mexico, beer production was interrupted during the beginning of the confinement period because it was considered a “non-essential activity”. Now that beer production resumed on June 1, we take a look at the market for the country’s two most successful beverages.
The success of tequila
Ramón González Figueroa, general director of the Tequila Regulatory Council (CRT), explained that the agave-tequila chain continued to operate during the pandemic. This of course, under strict health protocols. In this way they were able to continue producing tequila. In addition, they were able to support more than 70,000 families that depend on this industry.
Thanks to exports, the tequila market was able to continue to benefit from the boom they were experiencing. In the first quarter of 2019, 76.5 million tequilas were sold. But this year the figure rose to 89.6 million in the same period this year. The largest market is the United States, where 86% of the tequila produced is destined.
Beer exports fell 9.5%.
On the other hand, beer exports fell 9.5% during the first quarter as reported by the Agricultural Markets Consulting Group. The suspension of production and marketing operations by Grupo Modelo and Heineken Mexico due to covid-19 affected their numbers. Both companies are the main beer producers in the country. As a consequence, exports were also affected, for instance, Mexico’s beer exports to the United States fell by 28.5% according to the Beer Institute.
Another consequence of the production and commercialization stoppage is shortage. This phenomenon increased beer prices (2.55% m/m).
It should be noted that the current resumption of beer activity as an “essential activity” only takes place in Mexico City. It is here, indeed, where Grupo Modelo has a production plant.
In general, the legal producers of alcoholic beverages suffered a drop of between 34 and 50% in their annual sales last April and May.
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