Susana Distancia

24 March 2020 By Anna Szymanski Follow @Three_Guineas

The country’s president held a referendum that nixed Constellation Brands’ massive brewery, as the nation faces a manufacturing pullback, rock-bottom oil prices, and a weak peso. Rigid nationalist, anti-corporate politics can be costly in normal times – let alone in a crisis.

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Residents of the northern Mexico city of Mexicali voted on March 23 against the completion of an over $1 billion brewery being built by Constellation Brands, maker of Modelo, Corona and other Mexican beers. Opponents of the plant said it threatened the local water supply. While roughly 76% of voters rejected the brewery’s completion, less than 5% of the population cast valid votes.

Constellation's shares fell around 12% on Monday to close just above $105. The company said that the brewery would affect less than 1% of local water supplies and that it had all of the necessary permits.

The referendum was called by current president Andres Manuel Lopez Obrador. A similar referendum led the country to scrap a partially built $13 billion Mexico City airport in 2018.

The Mexican peso traded above 25 pesos per dollar for the first time ever this month.

Context News

The referendum was called by current president Andres Manuel Lopez Obrador. A similar referendum led the country to scrap a partially built $13 billion Mexico City airport in 2018.

The Mexican peso traded above 25 pesos per dollar for the first time ever this month.

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