On Monday, March 23, 2020, Constellation Brands (STZ) stock fell -12% (vs. the S&P -2.9%) after Mexican citizens voted against the company’s $1.4B brewery project in Mexicali, Baja California. The brewery project began in 2016 and is already 70% complete, with STZ having invested ~$900M to date.
Concern from local activists, citizens, and environmental groups over water supply in the region led to the President calling for a local referendum in early March. However, local farmers, other citizens had been protesting the construction of the brewery since 2016 on the grounds that it would strain water supply.
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