Northern Mexico Runs Out Of Water, May Impact Beer Production Northern Mexico Runs Out Of Water, May Impact Beer Production Extreme drought in northern Mexico has sparked a water crisis. President Andres Manuel Lopez Obrador addressed the beer industry in the region to shift production elsewhere because of sustainability factors, reported Bloomberg . The water crisis is particularly critical in Monterrey, one of Mexico''s most important economic hubs and home to some of the largest beermakers in the world, such as Heineken NV. Some neighborhoods in Monterrey have been without water for nearly three months, and Heineken''s facility has suffered as waterways dry up. Residents have protested commercial districts due to their oversized demand for local water. Monterrey Mexico is having a water crisis. Protestors blocked traffic. Looks like America will need more warehouses. International supply chains are not predictable. pic.twitter.com|olKErrFRpP — Daniel Spenrath (@Daniel_Spenrath) June 24, 2022 Lopez Obrador said the government would support a transition of the beer industry from the northern part of the country to the south or southeast, where water supplies are more abundant. "This is not to say we won''t produce any more beer, it''s to say that we won''t produce beer in the north -- that''s over," the president said Monday at a daily press conference. "If they want to keep producing beer, increasing production, then all the support for the south or southeast." Lopez Obrador said Constellation Brands is the perfect example of how his administration directed the brewer to halt the construction of a beer plant in the border city of Mexicali because of water shortages.