(Bloomberg). Constellation Brands Inc. (NYSE :)., is a maker of Corona and Modelo alcoholic beverages. It stated that it plans to increase beer prices by more than the usual 1%-2% due to increasing commodity costs.

Chief Financial Officer Garth Hankinson said on the company’s third-quarter earnings call Thursday that margins in the core beer business may suffer in the coming fiscal year in part because of inflation in commodity prices. Long-term operating margins of the beer business will remain at around 39%-40%, according to Hankinson.

Beer makers have been talking for the past year about the glass shortage. As people moved from drinking in bars to keg parties and home drinking, the problem has become more serious. MKM Partners analyst Bill Kirk said in a November research note that while Constellation’s most-affected brand seems to be Pacifico, Modelo Negra beers also come in brown glass and the largest risk would be if glass availability became so severe as to limit sales of Corona or Modelo Especial.

“We are diligently working to address the brown glass shortage that is acting as a headwind,” Chief Executive Officer Bill Newlands said on the call. Constellation also mentioned higher freight costs and warehouse prices as a result of the supply-chain disruptions caused by coronavirus pandemic.

The shares of Victor, a New York-based firm fell by as high as 4.2% prior to paring down. In the last 12 months, the stock rose 12%. This is in spite of a gain of 18% in the Consumer Staples Index.

©2022 Bloomberg L.P.