Facing problems with its own supply chain

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Can some explain how the 7 basic tools of quality relate to the article below? Corona Mexican beer brewer Constellation Brands Inc. is facing problems with its own supply chain, despite soaring Mexican beer sales in the U.S., according to Market Watch. In March 2016, the company scrambled to pull select 12-packs and 18-packs of Corona from U.S. stores after reports of bottles that contained glass particles. Market Watch reports the recall isn't expected to affect earnings, which are due out next week. However, the recall could raise questions from analysts about the cause, the cost, and the possibility of a future recall. Constellation has a greater chance of avoiding another incident if it ramps up production at its brewery in Nava, Mexico. In doing so, it will reduce its dependency on Anheuser-Busch InBev NV An AB InBev spokeswoman said the brewer has reviewed Constellation's compliand and control measures since the recall to make sure that it meets AB InBev's "strictest internal quality standards." As long as Constellation isn't in control of the supply, Market Watch reports, there could be another recall in the future. Constellation said earlier this year that in order to meet demand, it has extended its supply agreement with AB InBev through mid-2017. Market Watch reports Constellation also plans to increase the Nava brewing capacity by 4.2 million barrels, which would bring total annual production to 21 million barrels. CLSA analyst Caroline Levy predicts Constellation will be handling 90 percent of its production by 2017.

Reference no: EM131133441

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