Mazatlán turns off water to Pacífico brewery over payment dispute

The Pacífico brewery in Mazatlán, Sinaloa, has been without water since July 9 after local authorities cut the supply due to a payment dispute.

Water authorities in the city advised the brewery at the end of May that it owed almost 138.4 million pesos (US $6.9 million) for water usage and just over 31.6 million pesos (US $1.6 million) in unpaid connection fees. Pacífico claims that it is up to date with all its payments.

The newspaper Milenio reported that the Grupo Modelo-owned brewery previously received a letter from the same authorities on April 20 advising it that it had an outstanding connection fee owed to the Sinaloa government. That letter didn’t specify the amount owed.

The brewery said it subsequently received “several verbal threats” that its water supply would be cut and consequently sought an injunction against suspension of water service.

A district court judge ruled in Pacífico’s favor on May 14, granting a provisional suspension order. The judge also ruled that the brewery wasn’t required to pay the alleged debts.

Nevertheless, Mazatlán water authorities continued to seek payment and after not receiving the money it sought, proceeded to cut off the brewery’s water supply.

The suspension of service, the second the company has faced this year, poses a threat to the livelihoods of 1,500 employees and 900 other people whose jobs indirectly depend on the production of beer in the Pacific coast resort city, Milenio said.

The brewery’s inactivity could also lead to a shortage of Pacífico beer in Sinaloa and other states in which the Mazatlán-brewed beverage is distributed, among which are Baja California, Baja California Sur, Durango and Sonora.

The Pacífico brewery has operated at its current location in Mazatlán for the past 39 years. Grupo Modelo, now owned by multinational beverage company Anheuser-Busch InBev, acquired the brewery in 1954.

With reports from Milenio

Have something to say? Paid Subscribers get all access to make & read comments.
estela de luz protest

Activists climb a Mexico City monument to proclaim that human rights are ‘also in play’

0
The choice of the phrase "in play" (en juego) in reference to human rights was seemingly meant to call attention to how little notice they are getting compared to the World Cup games.
The heightened security in and around Mexico City's Historic Center, due to threats of protests and the construction of the FIFA Fan Festival in the Zócalo, is frustrating business owners, who claim there is no foot traffic.

At least 7 protest marches plan to descend on Mexico City Stadium during World Cup opener

0
Protesters — who include searching mothers, teachers, retirees, healthcare workers, farmers, anti-gentrification activists and transportation workers — are expected to arrive at the stadium just as the Mexico vs. South Africa match is starting.
fruits and vegetables for sale

Mexico’s inflation rate dropped below 4% in May

0
The headline rate is within the Bank of Mexico's 2-4% target range for the first time since January, when annual inflation was 3.79%.
BETA Version - Powered by Perplexity