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Corona Shortage Keeps Retailers Dry, Sales Down

Beer drinkers trying to order a Corona at their local pub have been coming up dry recently due to a shortage of the Mexican import. The reason for the shortage remains murky and confused--but it's causing Corona, the No. 1 imported beer in the U.S., to lose tens of thousands of case sales each week, says Don Mann, a spokesman for the Gambrinus Company, which imports and markets the Grupo Modelo brands in Eastern markets. Modelo has told importers that a problem with the production of long-neck bottles is to blame, along with a possible glass shortage or difficulties with the label-painting operation. As early as mid-May, the Mexican brewer sent letters to distributors and some retailers warning that it was working to fix the glassware production glitch. Says Mann: "This issue is costing everybody a lot of money. There's bottle-production capacity available all over the world and why, with the stature of a brand like Corona, would you allow this sort of problem to continue?" Whatever the reason, the issue is causing real problems for retailers. An upstate New York retailer says his stores were out of Corona Extra for 10 days before finally receiving a pallet delivery earlier last week. He also just started to receive six-packs of 7-ounce bottles after being out all summer. He hasn't had any shipments of Corona Light for weeks. Various Eastern wholesalers also claim their stocks are low or depleted.

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